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VVESTE414UNA UNION

Form 260

WESTERN UNION

PGE W. E. ATKINS, VICE-PRESIDENT

tECE...

No.

TEL-

AM

NEWCOMB CARLTON. PRESIDENT

TIME FILED

BELVIDERE BROOKS. VICE-PRESIDENT

CHECK

SEND the following Telegram, subject to the terms

New York,

on back hereof, which are hereby agreed to

October 26,1914

JAMES FREEMAN CURTIS'
STATE STREET
'BOSTON

MASS

CAN YOU RUN OVER TONIGHT FOR CONFERENCE WITH YE TOMORROW

AT TWENTYSEVEN PINE STREET

REPLY

BENJAMIN STRONG

Charge Federal Reserve Bank




41111%h'

ALL TELEGRAMS TAKENBY THIS COMPANY ARE SUBJECT TO THE FOLLOWING
To guard against mistakes or delays, the sender of a telegram should order it REPEATED, that is, telegraphed back to the originating office
/For this, one-half the unrepeated telegram rate is charged in addition. Unless otherwise indicated on its face, THIS IS AN UNREPEATED
PAID FOR AS SUCH, in consideration whereof it is agreed between the sender of the telegram and this Company as follows:
The Company shall not be liable for mistakes or delays in the transmission or delivery, or for non-delivery, of any UNREPEATED telegram,
amount received for sending the same; nor for mistakes or delays in the transmission or delivery, or for non-delivery, of anyREPEATED telegram, beyom.
the sum received for sending the same, unless specially valued; nor in any case for delays arising from unavoidable interruption in the working of its line:
errors in cipher or obscure telegrams.
In any event the Company shall not be liable for damages for any mistakes or delays in the transmission or delivery, or for the non-delivery, of t
gram, whether caused by the negligence of its servants or otherwise, beyond the sum of FIFTY DOLLARS, at which amount this telegram is hereby vo-a greater value is stated in writing hereon at the time the telegram is offered to the Company for transmission, and an additional sum paidor agreed t.
4u
on such value equal to one-tenth of one per cent. thereof. '
The Company is hereby made the agent of the sender, without liability, to forward this telegram over the lines of any other Company when necessary
reach its destination.
Telegrams will be delivered free within one-half mile of the Company's office in towns of 5,000 population or less, and within one mile of such office in othet
cities or towns. Beyond these limits the Company does not undertake to make delivery, but will, without liability, at the sender's request, as his agent and at hi
expense, endeavor to contract for him for such delivery at a reasonable price.
No responsibility attaches to this Company concerning telegrams until the same are accepted at one of its transmitting offices; and if a telegram is sent t
such office by one of the Company's messengers, he acts for that purpose as the agent of the sender.
The Company will not be liable for damages or statutory penalties in any case where the claim is not presented in writing within sixty days after the telegram is filed with the Company for transmission.

THE WESTERN UNION TELEGRAPH COMPANY

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

IN

NEWCOMO CARLTON, PRESIDENT

CLASSES OF SERVICE
TELEGRAMS
A full-rate expedited service.

NIGHT TELEGRAMS
Accepted up to 2.00 A.M. at reduced rates to be sent during the

night and delivered not earlier than the morning of the next ensuing
business day.
DAY LETTERS
A deferred day service at rates lower than the standard telegram
rates as follows: One and one-half times the standard night letter

rate for the transmission of 50 words or less and one-fifth of the

initial rate for each additional 10 words or less. Subordinate

to the priority of transmission and delivery of regular telegrams.
Must be written in plain English. Code language not permissible.



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

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

Must be written in plain English. Code language not perMail delivery, postage prepaid, permissible.

missible.

ESTE41,x UNION
if

Form 260

WESTERN UNION

W. E. ATKINS. VICE-PRESIDENT

TEL

_
.1..ti*:,irW

AM

NEWCOMB CARLTON, PRESIDENT

TIME FILED

ER'S No.

WV

D the following Telegram, subject to the terms
m back hereof, which are hereby agreed to

BELVIDERE BROOKS, VICE-PRESIDENT

CHECK

October 299

1914.

74L6i,...4"j. F. Curtis,
Boston, ilass.

Mr. Jay and I are greatly distresoed by your telagram. If your decision
is final of course w, cannot hope to dhance it On the other hand the
sugcsstion has be

n received so cordially by all

directors and the future

seems to me to oon'ain so many at'rebtive possibilities that I still hope

you may be willing to reconsider your decision. If you feel willing to



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

THE WESTERN UNION TELEGRAPH COMPANY
INCORPORATED

NEWCOMB CARLTON, PRESIDENT

CLASSES OF SERVICE
TELEGRAMS
A full-rate expedited service.

NIGHT TELEGRAMS
Accepted up to 2.00 A.M. at reduced rates to be sent during the

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

night and delivered not earlier than the morning of the next e'nsuing
NIGHT LETTERS
business day.
DAY LETTERS
Accepted up to midnight for delivery on the morning of the next
ensuing business day, at rates still lower than standard night telegram
A deferred day service at rates lower than the standard telegram
rates, as follows: The standard day rate for 10 words shall be charged
rates as follows: One and one-half times the standard night letter
for the transmission of 50 words or less, and one-fifth of such standard
rate for the transmission of 50 words or less and one-fifth of the
day rate for 10 words shall be charged for each additional 10 words or
initial rate for each additional 10 words or less. Subordinate
less. Must be written in plain English. Code language 'not perto the priority of transmission and delivery of regular telegrams.
missible. Mail delivery, postage prepaid, permissible.
Must be written in plain English. Code language not permissible.



Allif ESE
T

klISENA

UNION

Form 260

WESTERN UNION

CO.

V. E. ATKINS, VICE-PRESIDENT
No.

TEL

WNW

-

AM

NEWCOMB CARLTON, PRESIDENT

TIME FILED

BELVIDERE BROOKS, VICE-PRESIDENT

CHECK

LRECEIVER'S

SEND the following Telegram, snbject to the terms
on back hereof, which are hereby agreed to

2

October 29, 1914.

disclose the reasons for your decision possibly we can assist in ahanging it.




Benjamin Strong, Jr.

.

'

ALL TELEGRAMS TAKEN BY THIS COMPANY ARE SUBJECT TO THE FOLLOWIN

To guard against mistakes or delays, the sender of a telegram should order it REPEATED, that is, telegraphed back to the originating o
For this, one-half the unrepeated telegram rate is charged in addition. Unless otherwise indicated on its face, THIS IS AN UNREPEATED TELEG.
PAID FOR AS SUCH, in consideration whereof it is agreed between the sender of the telegram and this Company as follows:
The Company shall not be liable for mistakes or delays in the transmission or delivery, or for non-delivery, of any UNREPEATED telegram, be
amount received for sending the same; nor for mistakes or delays in the transmission or delivery, or for non-delivery, of anyREPEATED telegram, beyonflt
the sum received for sending the same, unless specially valued; nor in any case for delays arising from unavoidable interruption in the working of its
s;
errors in cipher or obscure telegrams.

In any event the Company shall not be liable for damages for any mistakes or delays in the transmission or delivery, or for the non-deliver;gram, whether caused by the negligence of its servants or otherwise, beyond the sum of FIFTY DOLLARS, at which amount this telegram is hereby Nurn
a greater value is stated in ,writing hereon at the time the telegram is offered to the Company for transmission, and an additional sum paid or agreed to be paid bast
on such value equal to one-tenth of one per cent. thereof.
The Company is hereby made the agent of the sender, without liability, to forward this telegram over the lines of any other Company when necessary to
reach its destination.
Telegrams will be delivered free within one-half mile of the Company's office in towns of 5,000 population or less, and within one mile of such office in other
cities or towns. Beyond these limits the Company does not undertake to make delivery, but will, without liability, at the sender's request, as his agent and at his
expense, endeavor to contract for him for such delivery at a reasonable price.
No responsibility attaches to this Company concerning telegrams until the same are accepted at one of its transmitting offices; and if a telegram is sem
such office by one of the Company's messengers, he acts for that purpose as the agent of the sender.
The Company, will not be liable for damages or statutory penalties in any case where the claim is not presented in writing within sixty days after the tv,.
gram is filed with the Company for transmission.

THE WESTERN UNION TELEGRAPH COMPANN

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

INCORPORATED

NEWCOMB CARLTON, PRESIDENT

-

CLASSES OF SERVICE
TELEGRAMS.
A full-rate expedited service.

NIGHT TELEGRAMS
Accepted up to 2.00 A.M. at reduced rates to be sent during the

night and delivered not earlier than the morning of the next ensuing
business day.
DAY LETTERS
A deferred day service at rates lower than the standard telegram
rates as follows: One and one-half times the standard night letter

rate for the transmission of 50 words or less and one-fifth of the

nitial rate for each additional 10 words or less. Subordinate

to the priority of transmission and delivery of regular telegrams.
Must be written in plain English. Code language not permissible.



Telephonic delivery permissible. Day Letters received subject tc
express understanding that the Company only undertakes delivery oi
the same on the day of their date subject to condition that sufficieni
time remains for such transmission and delivery during regular offic(
hours, subject to priority of the transmission of regular telegrams

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

Must be written in plain English. Code language not per.
Mail delivery, postage prepaid, permissible.

missible.

W ESTE
UNION
0.4cif
TE L I AM
p.

Form 260

WESTERN UNION

NEWCOMB CARLTON, PRESIDENT

TIME FILED

BELVIDERE BROOKS, VICE-PRESIDENT

CHECK

New York, October 30,1914.

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

jAVES F
53 M'ANE STREET
BO5TON rASS
rR STRONG AND I SHOULD BE GLAD TO SE YOU HERE TEN ()CLOCK
liONDAY TORNINC TO JISCUSS FURTHER *WHETHER TVERE IS NOT SOME
BASIS ON WHICH WE CAN GET TOGETHER

PLEASE WIRE WHETHER THIS WILL BE CONVENIENT

PIERRE JAY
CHARGE

Fedaral Reserve Bank.



ALL TELEGRAMS TAKEN BY THIS COMPANY ARE SUBJECT To THE FOLLOWIN
To guard against mistakes or delays, the sender of a telegram should order it REPEATED, that is, telegraphed back to the originating
For this, one-half the unrepeated telegram rate is charged in addition. Unless otherwise indicated on its face, THIS IS AN UNREPEATED
PAID FOR AS SUCH, in consideration whereof it is agreed between the sender of the telegram and this Company as follows:
The Company shall not be liable for mistakes or delays in the transmission or delivery, or for non-delivery, of any UNREPEATED telegra.
amount received for sending the same; nor for mistakes or delays in the transmission or delivery, or for non-delivery, of any REPEATED telegram, beyw
the sum received for sending the same, unless specially valued; nor in any case for delays arising from unavoidable interruption in the working of its 111
errors in cipher or obscure telegrams.
In any event the Company shall not be liable for damages for any mistakes or delays in the transmission or delivery, or for the non-delivery, of t
gram, whether caused by the negligence of its servants or otherwise, beyond the sum of FIFTY DOLLARS, at which amount this telegram is hereby valued,
a greater value is stated in writing hereon at the time the telegram is offered to the Company for transmission, and an additional sum paid or agreed to be paid
on such value equal to one-tenth of one per cent. thereof.
The Company is hereby made the agent of the sender, without liability, to forward this telegram over the lines of any other Company when necessai_
reach its destination.
Telegrams will be delivered free within one-half mile of the Company's office in towns of 5,000 population or less, and within one mile of such office in oth
cities or towns. Beyond these limits the Company does not undertake to make delivery, but will, without liability, at the sender's request, as his agent and at
expense, endeavor to contract for him for such delivery at a reasonable price.
No responsibility attaches to this Company concerning telegrams until the same are accepted at one of its transmitting offices; and if a telegram is sent t,
such office by one of the Company's messengers, he acts for that purpose as the agent of the sender.
The Company will not be liable for damages or statutory penalties in any case where the claim is not presented in writing within sixty days after the telegram is filed with the Company for transmission.
11

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

THE WESTERN UNION TELEGRAPH COMPANY
INCORPORATED

NEWCOMO CARLTON, PRESIDENT

CLASSES OF SERVICE
TELEGRAMS
A full-rate expedited service.

NIGHT TELEGRAMS
Accepted up to 2.00 A.M. at reduced rates to be sent during the

night and delivered not earlier than the morning of the next ensuing
business day.
DAY LETTERS
A deferred day service at rates lower than the standard telegram
rates as follows: One and one-half times the standard night letter

rate for the transmission of 50 words or less and one-fifth of the

initial rate for each additional 10 words or less. Subordinate
to the priority of transmission and delivery of regular telegrams.
Must be written in plain English. Code language not permissible.




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

NIGHT LETTERS
Accepted up to midnight for delivery on the morning of the next
ensuing business day, at rates still lower than standard night telegram
rates, as follows: The standard day rate for 10 words shall be charged
for the transmission of 50 words or less, and one-fifth of such standard
day rate for 10 words shall be charged for each additional 10 words or
less. Must be written in plain English. Code language not permissible. Mail delivery, postage prepaid, permissible.

October 30,1914.

James

r. Curtis, 3Sq,
57' Chestnut

Beston, VAes,

Dr r. Curtis,
sent you the following telegram to
your °Price this nIorninz, after reading your
r,,,pitly not
r. Lron, rfich
letter

roaaed you Lire;

Mrong and I should /AO glad to
see you here Len oclocit Yonday
Lornine to discuss further whether
thei-e is not some tmais on which

we can g-t together Please vire

,v1vi,th6r this will be convenient"

I aia,




Roping to have the pleasure of seeing you,
Sinoxrely ycurs,

WESTEasm UNION

Form 260

WESTERN UNION

E. ATKINS, VICE-PRESIDENT
No.

TEL

AM

NEWCOMB CARLTON, PRESIDENT

TIME FILED

he following Telegram, subject to the terms
ck hereof, which are hereby agreed to

BELVIDERE BROOKS, VICE-PRESIDENT

CHECK

NEW.YORK

OCTOBER 31,1914

JAYES F CURTIS
53 CHESTNUT STREET

BOSTON 'ASS
REGRET EXTREYELY INCONVENIENCING YOU BUT TIVE VERY SHORT

AND THINK VATTER COULD BE DISCUSSED 'FAR BETTER AT
CONFERENCE THAN BY TELEPHONE

PIERRE JAY



Charge '?ederal Reserve Bank

ir

- 1111111.1111111111

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

THE WESTERN UNION TELEGRAPH C,
INCORPORATED

NEINCOMO CARLTON, PRESIDENT

CLASSES OF SERVICE
TELEGRAMS
A full-rate expedited service.

NIGHT TELEGRAMS
Accepted up to 2.00 A.M. at reduced rates to be sent during the
night and delivered not earlier than the morning of the next ensuing
business day.
DAY LETTERS
A deferred day service at rates lower than the standard telegram
rates as follows: One and one-half times the standard night letter
rate for the transmission\ of 50 words or less and one-fifth of the
initial rate for each additional 10 words or less. Subordinate

to the priority of transmission and delivery of regular telegrams.
Must be written in plain English. Code language not permissible.



Telephonic delivery permissible. Day Letters received
express understanding that the Company only undertakes
the same on the day of their date subject to condition tilt
time remains for such transmission and delivery during re

hours, subject to priority of the transmission of regular

NIGHT LETTERS
Accepted up to midnight for delivery on the morning
ensuing business day, at rates still lower than standard nig
rates, as follows: The standard day rate for 10 words shall
for the transmission of 50 words or less, and one-fifth of suc
day rate for 10 words shall be charged for each additional
less. Must be written in plain English. Code langua4
missible. Mail delivery, postage prepaid, permissible.




November 4, 1914.

James F. Curtis, Esq.,
--- 55 -State [5trect,
Boeton, Mass.

Dear Xr. Curtis,
Enclosed find confirmetionof telegram whidh it has

afferJed Mr. Jay an me the utmost gratification to send to you today.

Th19 letter is to convey to you a few worls of apprecia-

tion, that you have been wining to make a considerable sacrifice in

tic
your personal affairs In order to accept our invitayoon to enter into
tale new Tertnership. I am hopeful, in fact confident of the outcome,

and look forva,A eagerly to seeing you here with us. If it is possible
fof' you to name over this week there is quite an accumulation of

matertal araitine; you, besides that, there are nany matters in vtIch
your counsel and advice would be of great value to us, as we co along,

in connection with the business of the bank.

We both realize that the aucrifice is not only yorTr,
but Ex's. Curtis as well, and I hope you will convey to her our ex-

pressions of appreciation which are very hearty aadsincere*

,th cordial regards,
Sincerely yours,
5*.

Eric-

NEW YORK BOOKING OFFICE

THE RITZ-CARLTON HOTEL
46T.` STREET AND MADISON AVENUE

NEW YORK

4
uuft,

fflIIHIIH

(-06_

uauft

attrilf IrJt fax

ROOMS FOR THE HOMESTEAD HOTEL
c.....aagano

411-0*

_
'

r

999999p.4.19[f

MAY ALSO BE RESERVED AT
9,

THE RITZ-CARLTON, PHILADELPHIA
THE RITZ-CARLTON,

MONTREAL

BATH HOUSE IS UNDER THE

H. ALBERT
RESIDENT MANAGER

DIRECTION OF
EP? FRANK HOPKINS, MEDICAL DIRECTOR

OPEN ALL THE YEAR

42/, 31st March, 1915.

J. F. Curtis,
06/o. Federal Reserve Bank,
2, Cedar Street,
New York City.
Mr.

Dear Mr. Curtis:

Thank you for your letter of the 29th and telegram of
to-day.

I understand from your telegram that McDougall wants

to send immediate notice that the collection system may be inaugurated at once, this leaving to each bank the decision as to the
date when actual clearing will commence.

I see no objection to

this whatever, as I telegraphed to you to-day, copy of my wire
enclosed.

I was out all the afternoon, so did not get your wire

until too late to answer by day message.
If, on receipt of this letter, the members of the Board

and you and Mr. jay feel it will be desirable to send the circulars
out at once, please do not awalt my return, as I see no reason for
delaying matters tow that all concur.

The changes suggested by

the Federal Reserve Board strike me as being pretty good, although
I think they should approve the plan affirmatively rather than



31st March, 1915.

Mr. J. F. Curtis, #2.

authorize it in the language which Delano uses in his letter.
About the Controller's report,

I

suggest that Mt. jay

might send him a telegram enquiring if it would be satisfactory
for 41m*to send a competent clerk and stenographer to his office

to take notes from the examinations of member banks of our district not covered by those examiner$reports which will be in Mr.
Stareks hands.

I-have also urged that Mt. Delano be notified

that we believe that the settlement fund will shortly become an
important factor in the whole clearance arrangement and the
details in our opinion should be worked out at once.

As I recaIL

Mr. McKay and Mr. Hendricks would prepare the time schedule to be
used on checks drawn on reserve banks.

All of our members should

be advised of that schedule and before any notice is actually sent
Pit

out to the member banks, the plan and detail together with the
time schedule should be submitted to the clearing house Committee
at New York for their action.

They will undoubtedly approve the

scheme, but, as a matter of courtesy, should be given opportunity
to examine it.

It also seems to me desirable that

6040-

xr

Aiken and

Ifo-rocez

Rhodes agree to make some arrangement etbeN4 receiving cnecks on

Philadelphia and Boston on some basis which will give our member
banks some offset.

I am not quite clear how this can be worked

out, unless we also receive checks drawn on the Federal Reserve
Banks of Boston an,' Philadelphia for immediate credit at par.

I hope the above answers the enquiries contained in your
letter and telegram.




Do not hesitate to go ahead with the plan

Mr. J. F. Curtis, #3.

31st March, 1915.

if you all agree that that is the thing to do.
The first part of this week I had little inclination
for any work and have allowed all of my mall to accumulate so
it will only beat me home by a day or two.

I am really getting

in a lot of exercise and fresh air and it has done me a lot of
good.




With best regards to all the boys at the office.

Very truly yours,

ALING DAFT.
AO;

ORAL IIIIINVE nANK




April 17,

1915.
My dnar Curtima
Thanks for your note of the 16th.

I am glad the weather is giving you a show, also,
that you had opeortunity to visit around a bit with our 7.ashington friends.

I am enclosing a spare copy

of Lir.

John G. Johnsonts

opinion in regard to National banks exercising the functions of
trustee, etc.

Our meeting really developed nothing but various expressions of views,

I think the

concensus was that state institu-

tions should be afforded no particular facility or privilege not
accorded to National banks.

There seemed to be no

objection in the minds of a _number of those present

very strong

to the privi-

lege of withdrawal; on the other hand, they almost WIthout exception, thought that

the

examinations should be by the Comptroller's staff

or the staff of the Federal Reserve Borrd.

It was arranged

that each

of those in attendance would write us a letter on specific points to be
sug ested by us, and Mir. Jey and I have sent

points we d-sire expressions of views.

It

a letter

will

indicating on -what

be interesting to read

the replies.

Nothing new yet on

the

clearance matter, as .iggin was

ill yesterday, and he is not willing to cive unqualified approval to
the plan.

kat
zu.

elt

44a,

447

AZ
'11.




-2To

April 17, 1915.

J. F, Curtis, Esq.

Have you bean able to discOver whether Mr. Brandeis
was retained by the Department of Juotice or by the Comptroller?
That question seems to be looming up here as the latest ground for
criticism..

The "Rigg's disease", as I recall it, has the effect
of making the eyes protrude.

It certainly hns hqd that effect in

this case.

Please give Mt. Curtis my best regards, and the sane
to your good self.
Sincerely yours,
dr

J. F. GUrtiS, ESQ.,
Zietropolitan Club,

Washington, D. C.
BS Jr/VCM-1

Aug. 11, 1915.

My dear Counselor:
-\

Please accept this as a belated but nevertheless very hearty ex-

at4

pression of my appreciation of your hospitality, and will you not also pay
my respects to your mother and sisters and tell them I enjoyed my brief
visit with them very much indeed?
There was not a great deal of news at the office until yesterday,
which developed a number of interesting matters.

Federal Reserve Board on

The proposed action by the

the French transaction - in other words,

the ruling

as to revolving credits - did not come forward, but Harding turned up here

the

day before yesterday having been summoned by Secretary McAdoo to a meeting at
New York.

The Secretary was very insistent about the necessity for an immedi-

ate ruling and, as

the

result of a brief meeting I had with him and with

the

Harding Monday noon, a special meeting of
ed to be held at this office yesterday.
with the exception of McAdoo and Delano.

Federal Reserve Board was call-

They were all here,including Willis,
It took all day to have action but,

finally, the enclosed letter was agreed upon and is to be finally signed and

sent to me at once from

ashington.

I shall be glad to have your observations;

in fact, I missed your counsel in this matter very Etch
me to draft

the letter, which I did without the

as Mr. Harding wanted

benefit of your skill in the

use of Language.
I am sorry to say that two members of the Board were-eternly and

positively opposed to this action and one of them undertook to introduce every
objection that could be raised, technical and otherwise.




Finally the letter

;0.

James F. Curtis, Esq.

8/11/15.

from ' ashington and

was delivered to me in this form in advance of final advice
I was authorized to read it to Mr. Brown, which I have done.

I

advised Mr.

eligibility and I

have ver-

bally notified the Board that, having now disposed of the question of

the right

Brown that this does not dispose of the question of

of a member bank to accept renewal drafts, I

hitch

was proposing

to take a fresh

and go to the mat with them on the question of eligibility.

to have

We have got

the question settled and Governor Hamlin is disnosed to call a special

meeting of the Board'to be held in ' a hington when Secretary McAdoo returns'

and have the matter out.

I don't want to

bring matters

to this

crisis, however,

until we are more fully prepared. e should have a careful and conservative
brief covering the law on this point and I think we should make sure that Mr.

Cotton entertains the same view that we do on this subject of eligibility.

Lest you may think me very

careless in money matters, I write noN to

11:0-4

remind you that I owe you some money,

which will

advise -le of the amount.

I hope you

have a bully holiday.
Very sincerely,

James F. Curtis, Esq.,
0/6 Mrs. G. S. Curtis,
Manchester, Mass.

BSJr/PE
:Inc.




be promptly paid whenever you




November 15th, 1915.

Dear Ur. Curtis:

I hope that you will

be able to take

dinner at my apartment, 903 Park Lvenue at 7:30
on Monday next, the ;Lth inst., as I am Anxious

to have opoortunity for informally discussing
some of the work of the bank at an early date.
Hoping that it will

be possible for

you to be there, I beg to remain,
Very truly yours,

;Tames P. Curtis,

hesorvo
York City.

BS Jr/VCM 4

The above letter sent to all of the Lifectors of
the Bank, except Messrs. Peabody, Treman and Locke to whom
telePTams were sent.

Ritz
TELEGRAPHIC ADDRESS

,

L on don,

MI,OTEL-PICC,WW".

February 12th, 1916
My dear Counsellor:

Here we are comfortably established

in the Ritz after a fair and uneventful
There was a good deal of delay in
voyage.
getting off the vessel, as is usual and
necessary, but we finally reached London at.

two o'clock this morning.

So far nothing has transpired worth

writing about but I shall write you and Er.
Jay fully in the course of a few days. In
the mean time please convey my kindest regards
,

r

to Mrs. Curtiss and tell her that I propose

to inflict her with a letter at the first
opportunity.




My best regards to all at the office.
Sincerely yours,

Paris, France--Hotel Ritz
February 28th, 1916.

Dear Mr. Curtis:
Thank you for yours of February 11th and the enclosure
which accompanied it. The proposed amendment strikes me favorably.

I really did not feel that as a condition of exercise of proposed/powers
it should be necessary for a National Bank to make application t6 the
Federal Reserve Board and receive its assent unless the application
refers to the establishment of branches. A National Bank does not
apply to the Comptroller, or to the Federal Reserve Board for
permission to invest its money in one of the various ways in which it
Is authorized by law to make investments, and this is simply another
kind of investment in addition to those already authorized.
I have just completed reading a copy of the Board's
annual report sent me by Er. Jay. It struck me as being rather
colorless, harmless, and just a trifle boastful. Thatpportion relating
to foreign credits was particularly weak and it seemed to me that the
Board would have done

better to have left out all

reference to the

On the other hand, the Board has done very much better work
than is brought out in the text of this report. In other words. I do
not think they have put their best foot forward--nor could it be
expected with seven different minds working on the outcome. Notice
the ambiguity in the language of the amendment recommended in regard
matter.

estate loans. It is impossible to say whether the limitation
they propose shall be increased if the percentage of time deposits
allowed is greater than the percentage of capital allowed.
I have seen a good deal of Captains Logan, Symington
and some of the other fellows from the Embassy. I have also see considerable of Paris and spent a lot of time with the bankers here. Shall
not write particulars until on my way home.
I am sorry to say that I
reached Paris without your sister's address and without means of getting
it until I happened to meet Yr. Sturgis the day before yesterday and he
gave it to me. I am loaded up with engagements for the rest of the
week and expect to leave here early Saturday morning. Therefore, fear
that T shall be obliged to leave without carrying out the plan of
having a little party while we are all here. My travelling companion,
Yr. Harris, left me Saturday but Symington arrived from London that
night and has taken his room so we are keeping house together.
Garrison's resignation seems to have been quite a bombsheil over here, and I should certainly regard him as a great loss to
My best to all at the office,
the administration.
to real




Sincerely yours,

March 14th, 1916.
My dear Judge:

Your very nice letter of February 28th has just
reached me, and I was very glad to get the review of politics
at home.

Senator Root's speech has been reprinted and
circulated in pamphlet form over here and, of course, as you
will realize, has made a great impression. There seems to be
some uncertainty, however, as to whether it will have the
effect off strengthening his hand in dealing with Germany, or
on the other hand, of convincing him that the country is
behind him in his nresent course in dealing with Germany --in other words, it may not effect a continuance of correspondence and an indefinite postponement of any more aggressive
course.

I am not particularly enthusiastic over the
appointment of the Secretary of Jar as announced in the papers
The man ap.pointed is only slightly known to me,
over here.
and I never had a very high opinion of his ability. I understand that Secretary Garrison is to help him in the department
for a while, now that we are undertaking a punitive expedition
into Mexico.

Have written Mr. Jay, today, in regard to various

matters but omitted to say in my letter to him that if I stay
longer (say until April first) I honed Hamlin would be willing
to defer action in the clearing matter until my return, as I
have made some investigation as to how checks are handled both
here and in France, and would like to explain their system a
Lit before we undertake the delrelopment of our own. It is hard

to give an account of how time is occupied here--possibly it
can be expressed by saying that the best understanding one can
get of the situation here is to live in the atmosphere and
absorb it--that I am doing every day and every night.
Please give my best regards to Mrs. Curtis and let
me say again, if you fellows are not honest with me about cabling
my return, its your on fault if you have to do more than your
share of the work.
With best regards,
Sincerely yours,

J. f. Curtis, Esq.,




62 Cedar Street,

New York City.

Misc-37

Office Correspondence

Date

June 27, 1916.

Subject:_rersonal-- Matter 8 .

Mr. Curtis

From

FEDERAL RESERVE
BANK OF NEW YORK

irStrrrn-g,

I am delivering to you a tin box which should be
locked up in the vault, and wit, it, a key rhici, I went to
leave in your custody.

The contents of this box consist partly of jewelry,
partly of papers which I want to preserve and partly of some
worthless stock certificates.

Also, the following, in con-

nection with which I am going ts ask you to give me a little
assistance:

Envelope marked No. 1 contains war currency
forming the beginning of my collection of emergency currency
issues, additions to which I will send you from time to time
and ask you to put them in the envelope.
Bankers Trust Company certificate of deposits
No. D 2105 and Palisades Trust and Guaranty savings book No.5869.
These I am assigning for transfer to Li's. Strong.

When :rs.

Ac

Laren has secured a new certificate of deposit in place of the
Bankers certificate and when I have signed a check covering the
balance in the ealisades Trust account, will you be good enough
to send these to the Astor Trust Company with instructions that
they are to be placed with Mrs. Strong's securities!
2 pass books of the Seaman's Savings Bank and

2 of the Palisades Trust and Guaranty Co., which can be handed
to 'rs. McLaren to be lodged with the Bankers Trust Company with
securities which they hold for my account.



fice Correspondence

FEDERAL RESERVE
BANK OF NEW YORK

DateTune 27, 1916.
Subject:

To

Parsonal_Mattprs.

Mr. Strong.

From

A bundle of stock certificates which are more
or less

moribund but which I want
with a

Bankerm Trust Company

ceipt for

same, which

deliver to the

Ihrs. McLaren t

suitable list, taking their re-

should be put in

the tin box.

Four certificates of stock in various clubs of

These, 1 am arranging to dit:pose of and

which I ar a member.

for

that purpose have executed all

of them in blank.

From time

to time I may write you about delivering these as they are sold.
In

addition to these certificates,

there are

tificates of stock in the Greenwich Country Club and a

some cercertificate

of stock in a club called "The Links", which are still to be delivered, and which

can be added to

this bundle vhenever

Another life insurance
hand you, which flould
the

the

the others.

various insurance policies which

contained

insurance register

have made a note in

I failed to

be dealt with in the tame way tv;

A bundle of
described'in

policy which

received.

insurance register of

are

in the tin box.

1

what disposition

to make of each of theme policies, except the fire insurance.

As

to this, I would like to have $15,000 covering furniture at
903 Park Avenue

transferred

to cover

furniture, silverware and

all other household effects, clothing, etc., in whatever warehouse

my housekeeper, Miss A. C. Andrews
practically the contents of the




may store them.

apartment at 903

This includes

Park Avenue.

iiffice Correspondence
To

FEDERAL RESERVE
BANK OF NEW YORK

Date

Mr. Curtis

____Mr.

From

.

Subject:

J1

27. 1916-

Personal Matter

Strong.

3
All the other policies listed on

page 7, which are

still in force should be transferred to .ra. Strong except
$10,000 of the t21,000 covered by the Westchester Fire policy
which, I believe, covers furniture at

Greenwich, part

has been moved and is now held in the

apartment in New York. In

of

which

other words, I would like to have from 120,000 to t25,000 of
insurance on my things that are in torage and all of the balance
should be transferreC to Mrs. Strong e.nd made to cover the prop-

erty in the Greenwich cottage.

OF

In case this cannot be worked

out promptly and easily, do not hesitate to write me about it
When the insurance is
ani, if necessary, send the policies.
all straightened out, my insurance register should be written
up and Mrs. EcLaren knows how to do that.

When my will is executed, can I trouble you to lodge
that with the Bankers Trust Company to be held with my securities?

BS Jr/VCM




Estes Park, Colo., July 20, 1916.

Mr. James C. Curtis,
Federal Reserve Bank,
Nassau & Pine Sts,,
Dew York City.
Dear Judge:

(1
You undoubtedly have understood whylIour letters
of July 6th & 13th were not answered more promptly.
I
have had more correspondence that I was al44 to handle
and am now catching up very gradual_17T-ilaiing organized
a little office up here, which is a-g-Teat-ek
or't).

I judge by the newspap iit you wo
he ci ar,
but if so, it was only by ack.
am unable to de ermine
whether you won it in geed\ rder
t1J. reports reach me as
to the way in Which the enl
Iransit Department is working.
In the matter of_smoke
am limitted to one cigar
after each meal; I/ean__thalso 1\ ast about an hour.
Cigarettes and aloohol/Vdo no )08,,
particle.
/
,

4

I am tre
duously qn-hused at what you say about
Brother Starek.
e whole/ istory of the past two years'
work is 9.1a
ed b
at
liar (potation, which I cannot
quote
v2tely, 11ut s-rbughly to the effect that "The
Mills 6- the Gods grind slowly, but exceedingly fine".
As I rto Trema
the 3% bond matter is now safely fixed
up so
is a case of closing the
door a
r the /1 se has departed.
AcDougal held us up
lone onb
jahka us miss the market.

r as I oi gather, but it

Thank you for the ::linutes of the Governor's Conference.
Judging from the statement published in the

Sunday papers, which I have just received, we took some
of Fisher's City notes no doubt after he had made the
rate satisfactory. With forty millions invested at 2i%
we will come pretty close to earning a substantial dividend, but I hope we don't pay it yet.
I hope nothing serious has developed in regard to
the baby. Any illness now naturally gives one a chill
on account of the epidemic. Don't forget that the wisest
precaution is absolute cleanliness.
If I were you I would
bathe, disinfect and change my clothes every day before
coming in contact with the children after returning from
business.



2.

I had a bully visit with P. J. in Denver.

He ar-

rived with a Harem; I think there were eight ladies in the
party but he did not bring them up to see me. I am delighted that he is away safely and for a long rest.
Thank you for attending to various tag ends and

details left for your kind attention. The Fire Insurance
is not important particularly as my housekeAper,
Andrews, is laid up in the hospital after 44 operation for

appendicitus and none of my things have yetlgone to storage.
I am confident the next month or so will bOrbusy times for
you and hate to impose on you, partiolllarli,iduring the hot
Charley Dorton wrote me all-cwaL-1101v Emery; iG is
weather.
,,Tod news for him and for his friands.
I am particuwill help him over his partica
larly anxious to hear how :214, n g t along a ' how the
Transit business moves. h"aotIp,Jof the Olean Bank will
ago agreed, bu I hate
be fruitless, as you and INh
r some ragged legal opinions.
to see it made the opportun
r to dashington and dope someCan't you spare a day-to--

et.0 e Board to submit it to the
thing out with Ellipttexpression of his views?
fic
Attorney General f6r an u
would nee,' no more than tat as an action at law, designed to restrain th plan, wy d at once force the Attorney
I am writing Treman
General tonAvo An opiniope ormally.
rega,rdipCveetious-matbera and won't enlarge on this

here. (//

he trip t did use me up a good deal. I was in
bed mck of the,t n days spent in Denver and a part of the
time f
nrett'bad. In order that you may get an accuof local opinion qbout my condition, I quote
rate im6sas
"You are now in unfrom Dr. :,ewall's letter just received:
stable biological equilibrium and a mistake in
method

could easily turn your internal affairs into a panic. With
the use of extraordinarj common sense and a child like joy
In what is, I am confident that your present environment
will see a gradual return to robust health, with mental

letter is pretty

conservative,
Hi_ whole
reservatigns."
based upon a new batch of X-ray pictures and pathological
examinations, with the result that I am tremenduously re-

stricted in taking any exercise.

I do not walk more than

300 or 400 yards a day.
About your invitation of Ally 13th, it gives me great
pleasure indeed to accept election as a charter member of the
"; the last word in the title Is so blotted
"New York
In your letter that I did not date quote it. It is a shame
that I cannot take active part in your dinners and deliberations at the outset, particularly as the company looks very
good to me. seriously, I feel very much honored that you







fellows should have taken me into the crowd when I am a
misanthropic, exiled invalid, but I consider it another incontive to get well and to get back home where I belong.
The last part of your letter of July 6th gave me more
pleasure thaa I can express, not being myself very good
at expressioas of that character. Looking back over the
last two years, I realize that a very warm4riendship has
strengthened into a definite abiding affecion, and I am
frank to sty that I miss you very much inde d. A letter
now and thna will help a lot and I am cowit.ng on hearing
from you al regularly as the spirit voJTU..

Peso give my love to La.s, and m

to yoursOf.

//'

aithf

y yours,

ery best

Estes Park, Colo., July 26, 1916.

Mr. J. F. Curtis,

Federal Reserve Bank,
liew York City, i. Y.
My dear Counselor:

I am just in receipt of the office

Oimorandum of

July 20th which gives me a splendid idea Of' what is happening
Mr.
at the office. The impression I get from at you andbeing
Hendricks say about the collection matter ii far from
unsatisfactory. 1:r. Leyford needa:36-have is comb cut,
but I ai inclined to think that the prOtbz- 4.s more bluff
encoura 7 thing is
than anything else. To me the,
the moderate float which Mr/,énd44ks repor at 000,TDO
e amount payable through
which, of course, is exelut
Janzel makes a full rethe Bow York Clearing HouSe
lined to think that they
port on his department.
should have additional-41p tn the Discount Department so
that they will ha>ecrae-ri-, °ken,

comes along in to/fall

for any extra work that

ôi in rest rates are higher.

ceived shows commissions
he 6 months, which would justify
a
our strenttaning\kaI_Dep rtment. Would you mind telling
nt just

The stat
earned of over

000 fo,

Mr. Higolns that la.m_go ng to take a few days to go through
the cirtular on the analysis of depositors accounts, and
will W ite him O)out it probably inside of a week.
1

ferr ;/to Mr. bailer's comments on the government

you think it would do to inquire of :JcAdoo
or Dalburli-litst what the policy will probably be in regard
to the amount of our balance. It sometimes is a good thing
to know just what we can count on.
These weekly reports, connected with the statement,
are just exactly what I wanted and I hope it is not proving
account,

too much bother to have them -prepared.

There are some new items in our statement that
don't quite understand and would appreciate a line from Jefferson about them. On the side of desources they are the
following, as of July 20th: Uncollected iteMs, 0_1,630,672.79.
Deferred Debits, y13,360,662.70. Transit Account, ' 49,309.59.
On the Liabilities side: Uncollected Deposits, 0_1,630,672.79.
I am simply curious to see how the bookkeeping covering the new
method of handling collections is being worked out.



2.

I am doing
long and believe
practically nothing except loafing all day
I an getting accustomed to it.




There is no news from here whatever.

Please give ml best to all at the o ice.
Sincerely yours

Estes Park, Colo., July 28, 1916.

IP. J. P. Curtis,

Federal Reserve Bank,

Dew York City, 11. Y.

My dear Judge:

have not written you for come days,
a matter of fact, there is mighty little news).
principally devoted to loafing, with about ani
to mail every morning. While I am not able'tp
exercise at all worth speaking of, I have.,-nejo
hill to the village twice, which indiaiItes-f4
The weather here continues delightfA and I
much pleased with the place as,erior.

It seems necessary to\oub

IOU

E

d, as
time is
our devoted
get any
iated the
progress.

ust as

with a little

commission, which I insist sha,
onestly
I brought with me some aigrs, çvhich I amperformed. to
permitted
smoe three a day. ;J
for me by the Stearn
Company, 3i5 Wall St,r t; th are\ rona Cabinet selections,
crop of 1913, and 4,4. Stearn 11 'hndoubtedly recall the
order. Could I tr9ible you oJ stop in at his place, see if
he has some of the me toba o, or something substantially
the same,/a0a-ask h Nizo_garip( 250 of them to me, with the
bill. Wmiett tel
furtheri ders to him direct. they are all right I will send

ust oo1eted sketching out

a Memorandum for
the Rose
BoarA, on the subject of appointing the Bank of
England Oitr_porxebpondent, and am sending it tomorrow to
Treman, with a few comments. The memorandum is divided

into two parts; the first relating to the law and the second to business considerations. After reading it over I
felt a bit ashamed of it, for it is not in the shape it

should be to send ti Washington. Won't you give it the
benefit of your thoughtful study, both as to form and substance, and please don't hesitate to make any changes that
occur to you. I have one copy here and if
a cops' of whatever is sent to Washington, I you will send me
will be very
grateful. 'Then it goes to 4ashington I think the suggestion
Should be made that in case it is necessary to submit it to
the State Department, we would like the privilege of submitting any additional data, arguments or information required to make the whole subject perfectly clear.
-

Please give my warmest regards to your good wife
and the same to yourself and the boys at the office.



Faithfully yours,

Estes Park, Colo., July 29, 1916.

4.

James F. Curtis,
c,-Pederal Reserve Bank,
flew York City, V. Y.

Dear Judge:

Yours of the 24th, enclosing assignments of
insurance policy, has just come. I will 14it up a Votary
and return these assignments as 80011 as they are executed,
and I am exceedingly grateful to you for ];ci king after
this and other matters for me.
I supposelnj brother explained to you the oontents of theeepzeitag4 of emergency

currency that I sent by him. There WITI- other similar
packages- come along in due cour-aaehich I
turn over
to your custody.
About answering lett rs,
io no burden at all.
I am not only feeling bette;
It is a treat to hear
from you fellows, and_j rarekT put in more than an hour
in the morning talci
of\ c rrospondence. A great
deal can be aoco
she
e are no interruptions.
I am glad( o learn ir your letter that Laura and
the babies are a :danchesye
The further away from the
epidemic.
'ow'oN140y afer. To tell you the truth,
I was wO
ed a bk-k. out/the baby when I hoard of the
',

illnees, and your letter is very

and h

such ma

reassuring.

o ton and i are corresponding occasionally
one of/those fellows who is most thoughtful about

Charlie

jp/that.

I am glad the officers mottings are going regularly.
to be done at the bank I have managed to duck it I ran
away when the new office was being built and now I have run
away when the collection matter is starting; sometimes it is
the best way to get things done.
Has it occurred to you that every time there is a mean job

You have sized up the French credit matter with your
customary acumen and I heartily agree with what you say about

the inadvisability of attempting to sell about 100,000,000

francs of exchange in Bow Yokr to liquidate the old account.

.

I think the government bond transaction is all right.
Uncle Joe will get a great shock to his trading instiodts
and I fear the scotch quartette in Chicago will feel a bit
subdued for awhile. You doubness realize that in this government bond account, as well as in almost every other transaction,
with our eleven partners that we have gotten the worst of it.




2.

It is casting bread on the waters however and, personally,
I am satisfied to continue to make sacrifices for the sake
of the ultimate gain.
am glad that you had a chance to talk with Arch.
Dr. Sewall, who is a man of very wide experience, was not
as obtimistio as the Eew York people, but I think he agrees
entirely with their prognosis; his diagnoe was certainly
much more conservative then theirs.

About check collections. Hamlin wri es me that the
of some
banks down in Mississippi are going-tarivAL

r\oup of banks
ahat a joke to have that peltksuit
order that
make an appeal to the United Staket courts
y and ex ortion.
they may be protected in the
If they were foxy, they weal' get one little ountry bank
a
to bring the action.
that charged a very modest
the odium that is al./O1asand
Mississippi will be liable\t
ready enjoyed by some of the' outhern fraternity, Who charge
all the way from lQ,--t'-aQp p cent interest.
/
friends in London6
1 hear occasionally\rom'
They seem very oplimistic about the progress of the war.

kind.

y-

Judging from herS, possibli)too optimistic, but certainly

those Jolln-14411s'Ovye

mad,e'it blunder in publishing a list

of eighty,---sicond,Nprireet tenth rate concerns in their
old bl,a9/k list. Iteiis a good bit like advertising a

corn.

Ole/ will

ccomplish nothing by it, except to create

a fee3,

to hear of the casualty in your own
aol.p
family checlel-n-but glad that it was not a nearer re-

lationship,

.nc1
it really is
This season the valley has been unmost extraordinary.
usually dry, but never a day passes that little thunder
storms and sometimes big ones don't form up in the mountains,
This helps keep
seems to be continually raining.
where
and keeps the streams filled. By about
us cool down here
August 20th these rains on the lower levels are snow storms
up dm tne peaks and from then on n little snow falls from
They say
time to time right through the fall and winter.
the only draw-back to the winter climate in Estes iark is
occasional high, cold wind. The snow fall in the Eark is
not heavy and does not stay On the ground very long.

-Zou ask about the climate nor()

it

About the Hughes alliance, I have no idea what
If it means work, sfeech making, etc.,
membership involves.
If it means simply exposing your-,
i think I would duck it.
self to the criticism that you have publicly announced your

toaitor
allegiance to dughes, nothithstanding that
http://fraser.stlouisfed.org/
to the beneh, I don't believe it iwil make and differeadf.
Federal Reserve Bank of St. Louis

he is a

3.

A few days ago I.met a Class C. director, who is
Deputy Governor also of one of the Reserve Banks, and had
quite a talk with him about the Federal ::eserve System.
The conversation disclosed that he was a most active democratic politician, had attended the Democratic Convention
as a delegate for the past sixteen years, and had practically
no banking experience; in fact was an insurance man, I really
cannot understand how appointments of that character can be
made with a straight face and a clean conscience. I suppose
if Hughes is aleoted, we may have the plea re of welcoming
George ierkins, or some such non-politioal ppointee. This
-

is a world full of freaks, but the real qu tion is whether
you and I are the freaks, or the other fel ws.

1 enjoy your letters immensi17-am& )e you can
scrape out time enough to writyiTo egularL. Best regards
to you all and give my love7 ou 3ood wif ion you write
her.




ery sincerely,




Estes Park, Colo., July 31, 1916.

Mr.

J. F. Curtis,

Federal deserve _Dank,
New York City, N. Y.

Dear Judge:

Enclosed are the orL-rinal fart-

cancellations of the two
policies, executed and a
hope you will find in/gb
This afternoon
fishing

tackle.

I0.1A,can
t,hi, e I

for some day
the river be
here,
come out in
0 count
good fly rod; ith you,
of grey hackl p1air
h yo

rod, hg

'ize

a
,

m

life in

dcred, and

licate
ance
ich I

nvesting in some
,erstand what that means,
Toing
,ny chance you should

to start fishing in

for our vacation, bring a
pair of waders,: and a supply

oachman and royal olachman
10 & 12. You will need a

6 ft. loaders, with one tail

y and one drop fly. By September most of the
out of here and they say fishing
rists wi
then atrbe
"tp best.
/

_ore is also a golf course here of sorts,
but Orl-Bibly you would prefer mountain climbing,
without the endumbrance of goll'clubs; it is all
mountains.

.Yours very

sincerely,




Estes lark, Colo., August 2, 1916.
Mr.

3. P. Curtis,

New York City.

14-J dear Judge:

I have sold
The enclosed letter explains itself.
Weston for 000.00, and I am

the Triton Club stock to Mr. draw the drafA, attach the
L!oing,to ask you if you will
the 44kers Trust Co.,
certificate to it and deposit it in of thOproceeds when
,lith request to advise o of credit
collected.
I I
certificate in m(f2IFITtdx isr.endorsed in
The stock
Weston's
blank, but should be jated and_w tnessia.:.culd make
er, as
name should not be filled i not raid..
trouble in ease the draft w
h last evening, and am
received yours 0
ing necessary time to the
glad to learn that you are
ock. ft is not, however,
Dational Ba
to help you myself, I
lab
a one man job an0
th for his own benefit
n,
strongly raceme 4
he is working
and for my own tpace of m d, as I am afraid
too hard.
set-backs that you refer to,
expo
much opportunity for them, as I
e not yet
but
the doctor's orders most
am &SUE nothiwr and following
It is the aling de of medicine I
consO entiousl-. however, for hardest is not in my line.
1.
(

have

er take.

;A0.00, evidencing
closinE a check for military training is
simply my belief that compulsory amount require& for
country. If the
necessary in this completed, write me again and I will
the league is not
increase this subscription.
sort should be
The support of an enterprise of thisto promote inin order
as possible
as widely distributed If one man contributed 400,000, it
terest in the work.
would not be nearly as satisfactory in results as having
At any rate, I will be glad to
1000 men contribute 400. others and let me know if a larger
go along with you e..nd the
amount is needed.
_-

klease tell your better-half that I am very much
favor
and hope
interested in picture puzzles good deal that she will
interest your
of
me with one. I await with a
memorandum.
comments on the Bank of England

2.

Last night I read Hughes' speech of acceptance
with a good deal of care, and was grievously disappointed

in the whole speece, with the exception of a few references
It had not the dignity that I had expected and,
furthermore, it advocated a whole lot of reforms and improveraents which are already well under way under Democratic
auspicies. Unless Hughes can improve on his first effort,
to Mexico.

it looks to me like four more years of demobracy. How did
the speech impress you.
A letter from E. P. Dutton J Compa advises me that

or Jr. Hartley
is lust possible
that Miss 12arker will understan1at this\lp ok should be added
Would you
ing to Al>war.
to various books and docume 4/re

they are sending me a book just pubIlv
Withers, called "International

Fin'iih-Te-",--

mind askinL; her to send iyo t to
done so.

I a.la ordering

Everything that Withers wr
written.




opy

,

e

if she as not already

to you and one to Treman.
J3ood, readable and beautifully
u

Estes Park, Colo., August 7, 1916.

Ex.

J. F. Curtis,

POderal Reserve Bank,
liew York City.
MY dear Judge:

YOUT three-in-one letter of August 4a. just reaches
me and your apologies are accepted.
11-. Hendricks explanation of-theTair ous accounts
.tter is clear
employed in connection with the colImatioa
.;() much detailed
and explicit. I am sorry the eyst n

bookkeeping, but realize thak/

not be h

ed.

\

upose4pü will, the usual
record of the next Govern()$' 2'ing, I would like right
well to have a look at the àëgraphic report ae soon as
it \\I would just read it over
LT. Treman is thro
collection, and then
he a 6d t
send it back
If you have., as I

gltk

iiir. Higgins can i dex it a

you will be good\ nough to

Iand

Is-1 ard%
are twbiamendments
me expttTj wha

4 ha4e2it bound as usual, if
emind him.

dment, 4arburg has not written
the
e 11L oing. You will recall that there

in-iespect to our foreign business in
'Oularly interested; one is dealing with
e and the other,
the mater of g
ceive -osits/T csi institutions which we appoint as cor-oreign countries. Of course 4arburg cannot
respon
-t6 be as enthusiastic about these particular
be expec
amendments as he will be respecting some of the others.
I a. awaiting with a good deal of interest some advice of
these two items and I am holdirk, a letter which
I have drafted to the Bark of England and the memorandum
covering the method of handling foreign business until I
.hen the bill is
hoar -that action is taken on this bill.
finally passed I will get it through the regular corporation
\Trust Company's service.
which -e are pa

authority for us to re-

the fate of

The Senate changes in the proposed branch bank arrangements strike me as being poor. It will make the big
bank in the big city all the bigger and will not give the
little country bank the same opportunity for extension that
Is it not curious how undemocratic
the large banks will enjoy.
these democratic legislators sometimes become under the influence of domestic pressure.

It occurs to

me that ,.,1r. Hendricks might profit by

looking over the Corn Exchange Bank's Check Department, if he


has


not already done so.

2.

Thank you for ordering the cigars, which arrived
today.

I am under the impression that you will find the
balance of the Dutch currency in my tin box, but will be
glad to be advised.

My letter, giving a brief impressiotrof Hughes'

speech, crossed yours and I am too disappoiftted
upon what I said in my former letter.

to enlarge

(

About the insurance matter,,I waS-fireaT the impression that the Pacific) Autv,al-pti;icy covee both health
and accident and that by the/ rms'or the poltdy I would
cacroiliac matter I do
211
be entitled to some recover
had previously
m, as
not regard as the basis of
submitted that subject and apice my physician, Dr. _!yers,
what he thought abotit---it-,and'N did not think it was a
th I cannot form a opinion
justified claim,
2ossibly you will
then.
olicy.
without reading th0 terms
be good enow:h to /de that Sonetime, advising me what you
I will hold the papers that
discover, and in he meant'
you send.
r

/alit

fishing'yeaterday with a couple of fellows
and we itanaged to get 8 few very nice trout, but py partici-

pation as very Ii5isure1y.

am awaitAng a letter from the office about the Bank
of Fng4 mergftrandum. which I hope can be licked into shape.
I have just received a letter from Basil Miles, in-

viting me to join the 1710 H. street institution and become
part proprietor in the joys and obligations of membership.
Needless to say I am accepting, believing that one of the
necessary qualifications of membership is frtiquent and long
It is mighty good of those follows to take me in.
absence.
Best regards to you and ;Irs. Curtis, and to the
office.




lours very

sincerely,

dose

BENJAMIN STRONG

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Estes Park, Col.,
August 24th, 1916.

Dear Judge:

I have your letters of the 9th, 9th, 9th, 12th, 15th
and 19th, all unanswered, owing to the suspenai.on of operations
in the office for a couple of weeks.
Advice of the pay;wnt on the (e0iton Club tock has not
I will await word befoiei doing an thing direct
been received.
and possibly you will be good enough to inquire fe4m them if the
e'e
sale went through.

Deposit of t7.25
Thank you w

read, but which i exp

mly

am ashamed to confess t
these late years.

been n
o

the boo Weice I hely not yet
'oy very' such in a few &lye. I

it

ee'eweline of reading for me
ee

rogram of the Boston meeting, I
After roc v g t
suj.onz for discuseion other than the
hesitated to send
t Mr. Trawl.
three

refiel MileiWies that he is

off for Russia on

Sep-

he will be terribly
possibly a year.
missed at 118 ii Street.
will eucceed him there an "papa"!
tember 9thitle-b_e:

no

Writing you about

the Dutch war currency, I have
received ail teer one gulden eilverbon, which I enclose to be
i,nce)
This, I an sure, completes the collecplaced with the others.
tion.

About the Bank of England matter, I note the arrangement made for discussion with NcAdoo, etc., and hope this is pressed
to a prompt conclusion.
Delano is, I think, the man to deal with
in WarRurg's absence.

pro. McLaren has a letter from hiss Erikson, making

a change in the 3 page letter of the 9th, which reached me too

late to

incorporate in. the brief.

The change made refers :to

certain communications in welch the words "lawful commeroreand
"legitimate commerce" wore used by bote Secretary Bryan end

Secretary Lansing.
the ohange which JO

You may have located this reference and made

desirable, as the reference is seecific and
It is particularly deisrable if the.
can be promptly confirmed.
document goes to the State Department.




2**

J. F. Curtis, Esq.

Aug. 24th, 1916.

The Travelers Insurance policy covering employer's

liability is returned with the assignment executed at the place
indicated and I will be grateful to you for doing the needful.
1 also, enclose a letter addressed to r. Thomas N. Cooke, the
agent who wrote the policy, in reply to his of the 7th, which
I return with this for your information.
I am sorry you are having so much trouble nbout the
Please let me know if I can be of any assistance

Clayton Act.

out here.

Possibly I can send you some "dope" drawn from per-

sonal experience in relation to New York instiPutione that would
be of value.
As you know, during the 10 years that I was connected with the Bankers Trust Company, I was reavIlly serving under a Board consisting of officers of most of
limportant New
1:,

York banks and it gave all of us a good view of ;he relations
York.'

existing between the bankers of New

.

Could you arrange through llarr

I

ataa*Qep track of

the omnibus bill of amendments and lvt- e know, ley'aetelegraph
if neceseary, of any ominous dev9,
t
I hamitten
Glass on the subject at Warbureyeugge ion and witi fire
some more telegrams

Governor.

I agree

ings

at him ife,

uncertain.

with you abou

The wholaathit

siderably politioaly/
I i

new Governor and Deputy

a me as a botch and con-

\

Don't you Fellows wox1y about my violating the docThor are too fz4ny watch dogs out here to make
tor's orders.

that possi31-e- d X\
says.
nding
z

adg strictly to what Dr. Sewall

Of his last examination to

It was alrfart entirely favorable.

Mr. Tre. a

agine4my pleasure on receiving those
Coaffirence and my sorrow that I could not

You Gee
grams f o
in debat

the

telejoin

opi4a/6a to ee, inclusive.

About the discontinuance of the telephene service at
my apartment, Miss Andrews, the housekeeper, has been ill and
will probably be there now arranging about storing my things.
I suggest your telephoning her and whenever she giveo the word,

file the cancellation.

Your advice to the Astor Trust Company about the pass

book was right.

Those First National Bank people need some sort of a
udreosing down", just what kind is hard to deteriLine.
Of all
the important banks in New York, they seem to be the only one
still antagonistic and I really think that Charlie Backus has




J. F. Curtis, Fsq.

Aug. 24th, 191e.

great deal to do with it. Some day we will see them at the
front door with a bundle of commercial paper for discount and
then they may have a change of heart.
ft

Don't bother any more about the accident policies.
All my accidents and illnesses seem to escepe the profitable
clase, and anyway, I am derelict in filing a claim whenever
anything happens!,

Learning that ecAdoo was coming to Denver, I have
made a tentative appointment with him for September leth.
Will you be sure and have two copies of the revieted brief of the
Bank of England matter in my hands before that 4i a, as I will
take the o eportunity to give him another punch I Also, I am
anxious to hear the report of your Conference wiit4, him.
.

II

7----eeji

.

Warburg has written me about nireieme-tiXances.

When

the Dardanelles ere opened we are eeri-ii-gio see of the greatest develcpmente ever witnessed PiAba 4reut count.
//
This covers everythin ment o )ed in your letters and
we from here, as 1 have
I cannot add anything in the waeeo
been a complete loafer for to w e past.
Would you

e---------e
e ----

sen
.

me a copy of the famous Burton

bill, together with copy of
do a little work qoitg the lin of currency legislation this
If you l'x e no spar copy, I think there is at least
'inter?
rker will be able to locate it.
one copy ipe-mereifileie, d !vas
e

your he
me post

e litAdebnal Bank Act, as 1 may

e,

Beet regards to you and the boys and many eeenke for
in my pe

with off; c

nul matters, and particularly for keeping
news.

yours,

J. F. Curtis, Esq.,

Federal Reserve Banks

Equitable Building,
New York City.
BS Jr/VCM




Estes Park, Col.,
August 30th, 1916.

/

Deur Mr. Curtis:

Since writing the enclosed frtter,
Mr. Strong has received your elegraM i reply

to his of even date and
//
owing to the contents
to Mr. Warburg in thi

what puz:

rrison's wire,
action.
urs,

Secretary to Mr. Strong.

James F. Curtis, Esq.,

Federal Rfierve Bank,
Equitable. 'uilding,
w York" ity.
VC M

PERSONAL.

Estes Park, Col.,
August 30th, 1916.
Dear Judge:

The laot copy of the Chronicle of Aug

26th, woich

just reaches me, Givee me the comolete text
report of
of-I()
tho conferees to whom 'as referred the aidmilouao5t endment bill,
)11

and very much to my surprise and

)

14, in respect of days of grak
\
provision for the reserve banks
banks.
Of x

tion but

iCI
I am

am with

It

\

s\ papagrap

E", Section

I
lifted. It does include the
ving the accounts of foreign

data hero to verify my redollec -

stak7,/yhis matter woe laid befooe the

Board a///od many differeWE-times, and so completely and explic-.
g
I

th
prepared

You and1 first
tter/An Washington last April; later you will find

no mist,opi should have been possible.
)itly

in the files of the bank at lest one letter which I wrote to the
Board, and possibly more than that

including letiers to Warburg
on this subject. 1 recall that the °hones which we proposed
simply inserted the words "exclusive of days of grace" in both
Sections 13 and 14, end that stbseeuently Warburg reported to me

that they were going still further than we had proposed by the additor of the amednment now approved by the conference.
Two or thre,, weeks ago

I telegraphed both Governor Ham-

lin and to you about this omission when the Senate bill wee reported as having passed.



To

James F. Curtis, Fog.

Aug. 30th, 1916.

Now there is a curious thing about this omission

you

will find that in every place where a change wes recommended for
Section 13, it hr.. s been made and, furthermore, Section 14, as

above stated, is amended to cover

one feature of

our foreign bus-

iness, but not to cover the days of grace, which applies solely

to the English bills.
here has been

I cannot bring myself to believe
I

that1

any deliberate omission here and yet it is so im ortant that we
i

should know and be satisfied of the goW44Liihjo

everybody in

terested in these matters, that I ,arrsdiposed
Ageest to you
to make some private inquiriet(
ugh Delan fee to just
what has beeh done in regard

four little

While diet

I have just received an

e onclo i g c.e irmation of a

envelope from Loon

sent by Harrison t'
ed by t1i4

and et

words,

arburg,

telegram

lining the amendments as

report-

n erence\yp_st!94 (the telegram is dated Aug. 24th.)

her things, that the Conference failed to in-

ng among
/

Section 14.

corpor

"days

puzzle.

i-thooughly disappointed and think we should do
to ascertain who is responsible for the failure of this

something

grace" in

The whole thing is a

very important amendment.

I had a

letter from Mrs.

but will not be able to do

anything

Curtis

yeeterday about the boy,

for awhile, as I have been laid

up for the last few days and unable to get

about.

I have quite an accumuiation of mail from the office and
will try to answer it later in the week.




Sincerely yours,

laciet F. Curtis, Esq.,

ee-

eserve Bank,
:ity.

9est

regards to you all.

Estes Palk, Col.,
September let, 1916.
My dear Mr. Curtis:

Your letter of the 2.th has been rea 1 with great in
Just a7, noon as I hear from the youn man, I will Bee
wall will doubtwhnt can be done here in regard to

'erest.

11e anywa
less keep him in Denver for a liAi
here you with so many telegrams
I am sorry to have
\
reports of the proceedings
about the amendments, but the
to indicate the adoption of
in Congress in ever /telitiftre4\f

/./

\/

\,,

ection 14. It is apparently all
the amendment to P
A1e0 n regard to the submission of this
straighteneA4pt
/matter(494he State Dep*ment, I just have your wire stating you




1],

)agraph

have a icipated njiie to which it replies.

ous to

It would be danger-

thaA ter dealt with in the usual official and rou-

tine way, without

opportunity to

submit a statement of some sort,

I am sorry that Lire. McAdoo's illness
keeps the secretary away. He would be of great value in the dis-

verbal or in writing.

cussion in Washington
yfitic telegram advising of the Board's unanimous consent

with conditions, leaves the matter in such shape now that we can
acted, provided, of
go ahead as soon as the State Department has
course, the Reserve Board does not

get

cold feet at the last minute.

lept. 1, 1916.

Curtis, Esq.

I have read the copy of the memorandum as finally sub

which !!r. fireman sent me and, of course, that is all right
the Reserve Board, but it was the argument on neutrality which

to be submitted to the State Department

to which I really gave

most thought, and it is a little odd that the Secretary

have it changed, as the memorandum was

originally, end

asked to

prepared at his request

subsequently in response

's insistence

to Warb

that the matter be reduced to writing, and

cove4ed this

whole ground.

,

Your suggestion about Kains reminds p4 Ithat 1
mentioned that matter to him once

or wice analheve
Akes the c

Opposed to leaving California w
Besides that, as 1

people.

a separate organization 111.New
.

//Teine c
,--

.

jokingly

distinctly
ate and

the

roman, the idea of having

for the reserve banks strikes

, ---

me as all wrong.

I would like to se
\
not in an ill nden

rouaded to come

to New York,

there s Deputy Governor of our bank, but

t n which would just do harm to the
/
whole syle en, 1 am sure. 1 do not think this as to Keine, who

\

is Ft Et foL

good.

a man aore-oould get, but as to any man, no matter how

to work out a scheme which will suit eveybody

gp

W

without having all the

eleven reserve banks opening branches or

agencies in New York, which is ultimately what it would amount to.
So much for now; I will write you later if anything of

interest turns up
your letters.

out here and look forward with keen pleasure to

Sincerely yours,

J. F. Curtis, Esq.,

Federal Reserve Bank,




New York 'City.

Estes Park, Col.,

Spetember 5th, Ali.

, Aoki
D ar Judge:

The weekly

report of August 31dt has

jdAst come and I
1

'am much interested inypur contribution.

I

You icziow

how keen I

am to hear what disposal is mete of our applioa ion for the
--l
appointment of the Bank of England. Am also e to get the
final copy of the amendments
ral Reser
Act, which
Mr. Glass writes me passed bdt
s of Congress last
1

teTd

Monday.
Mr. Tr
in New York

eman Aoubtleri

iuyve de'pided that they cannot take membership in
\

servy..eteR4 account of the provisions of the

the lede

ClaytoOot which prohibits
in

that the Trust companies

told

private bankers

\\,

moreOkthan one iltstitution that is a

from

being

member of the

This wodUi ditOdiify so many of the important

directors

system.

directors of the

New York trust companies that I am certain they will not make
necessary sacrifice.
boys make up
pare

the

A

suggestion

copy of the

which I find is not
2nd.

the

to meet

this difficulty:

Clayton Act as recently amended,

in my files,

A list of the jew York

comianies, giving the names

state banks and trust

of all of their directors, indicat-

ing which of those directors cause



have some of

following information for me, and I will pre-

something as a
let.

Could I trouble you to

the

the

disqualification. There

J. F. Curtis, Esq.

Sept. 5, 1915.

are a good many publications which give these lists, so it
will not have to be type-written, but opposite each name of
a director who is a private banker, have added the name of his
firm.

I have had some correspondence with the Board on this

subject and they would like to see a suggestion for an amendment to the Act. If you can send me this, together with a
copy of the Burton bill, which I recently wrotilifor, I will

have about all the material needed.
I

Would you also mind forwardinga4aaae4 osed letter

It io about somazp-er-snal

to Mr. Tremanl

I am sorry you and M

mai:tile

y are having so Ifiuch trouble

<

ThiØ9ftant thing is to get the
noard to deal liberallt-Wthi nterpretalion, so ae to
avid thenecessi for at-e::;/013nts \ the Clayton Act of a radover the old Clayton Act.

ical character.
#e on Thursday and have written

1Gamjgoing

your to ng man to imeet me there; then I will see what can be
done a
job.) Will also talk with Dr. Sewall about it.
//
;;411t

r-egards,

Faithfully yours,

J. F. Curtis, Esq.,

Federal Reserve Bank,
Equitable Building,
New York City.
BS/VCM







Estes Park, Col.,
September 6th, 1916.

Dear Judge:

Yours of the 2nd is received and with it
various enclosures, including therai/f4
of N\
last Covernors Conference but the B ton Bill tile
National Bank Act and stenoConference were not enc

Irer's report_gt

/

he

resume will

d, and

come presently.

ee, I am sorry to

In going

sea that so many t
Some of them shö
oroü

Lave passed without action.

/

\

d rehave been acted upon vig

and fin

at- the meeting.

separately about the Bank of
Eng1ani rajjdir-writing
Matter.

Faithfully yours,

J. F. Curtis, Esq.,

Federal Reserve Bank,
Equitable Building,
New lork City.
BS/VCM




Estes Park, Col.,
September 6th, 1916.
Dear Judge:

Of course, one of the penalties of having a mussy
desk, is now and then to overlook things, but I am glad to

say that the incident dealt with in the lettii-Mg4 sent me
has been closed. There is nothing to d /about th \atter
for the pictures could not be recovered, so please /give
this no concern.
In one of your let re Just rceived, you refer to
Wilson's attitude and
ude of 9ôflgroes in the railroad strike. i agree wi wheate-day that it is one of

the worst political ai4ndea we have ever seen. Wilson
may geirelome labor otes tit he is going to lose an awful
NA,
.._e ,
lot of bu6ese_votes Itsri result of his action. On the
other hand,4-iTTERhis speech of acceptance put Hughes dis!

tinctly in 4e shade.
H

It
IAlear you are going on a cruise.
drowned and have a good rett.
Faithfully yours,

.J. F. Curtis, Esq.,

Federal Reserve Bank,

Equitable Building,
New York City.

BS/VCM

Don't get




CONFIDENTIAL.

Estes Park, Col.,

September 6th, 1916.
Dear Judge:

Yours of the

31st reporting the

resu1,1 of your

trip

to lashi'ngton has been read with keen interesti I realize
fully the difficulties under which Mr. Warbur$ ! is laboring
k
and he hRs rritten me himself, explAining xiit\Nok place and
I

he differs

wherein

from the,

I

ws e pressed in

r memoran-

dum.

On the w'nole.0.___I-..think 4 e separate memorandum which

you prepared for a ding ori\t c q\4Vion of neutrality is an
1

1

improvement on tiO(original,),ithough

two poi01 we e no

I

am sorry that

one

or

nat memorandum which it seemed
_-

unnecetOary to

sublit

'

was r

ly made

/

made tteur-gUr

in the original.

g Warburg himself.

The principal one
Nit objection

.

:nglish acceptors by

asing bills drawn on

American exporters and sending them to America for

and holding them there as investments.
what we would

be doirg as

That, in

the only,

acceptance
effect. is

to a considerable volume of the bills.

This argument ...could have been elaborated and

made that

could be

reason for buying

an explanation

the bills abroad

instead

of in this market Would be to avoid necessary and destructive

competition with our own members.

have a

chance to argue

this whole

I would like right well to
question with the people in

the State Department, and I hope if hesitation develops, that




To

J. F. Curtis, sq.

Sept. 6th, 1916.

you will be able to get over to Washington and talk it over
with Lansing and Polk.

The sedond proviso strikes me as it did you, as being quite unnecessary. If the principle ic approved by the

State Department, there is no question whatever of the desir'
ability of starting now instead of after the war. If the
State Department gives its assent, I am sure thaVthe Board
will appreve immediate operations.
I

Tell Mr. Jay 1 appreciate his ,ceia-azierttlous attitude
in regard to the Bankers Trust Com

stitutions.

if he cares to cd
on these matters after the eve

ta oyof his

ties me

an to days of grac
CommiT

th

the

4eimorandum

ixtendment of Section 14

as roil /overlooked by the Conference

and only

4-to the Committee's report

ly by te courtest f the clerk of the
nized

milar

11 be glad to send him
e value.

comments on them whi
Warburg

nd othe

.11

Q itw,Iin oversight.

Committee who recog-

Warburg apparently caught

it in time to. get. it in.
I hope you have a good

rest

4ith best regards,
Faithfully yours,

J. F. Curtis, Esq.,

Federal Reserve Bank,

Equitable Building,
New York City.
Bs/vcm

final-

on your cruise.

etes Park, 'solo.,
September 9th, 1916.
Dear Judge:

was in Denver this week and had a talk with John
Laroecy, also, with Dr. Sewall. Laracy ie comfort4bly situated
if
at the Adams Home, where he tells me the accomodOons are sat-

isfactory and the food good.

Sowalleimyst4a

}1,, would be

teeing a considerable risk in underte4i- any hea i4(,\ w\ork, such
as woul, be neceseery if he came, Este 'ark. MOO> of the
!inter work consists of haulin
od
oal and, of couree,
under Sinter condition,,keernt.c.L ere etie severe.
Or. Sewall
recommends that hr.) de( °thing
one
possibly two months,
depending, of course upon his crgreos, and at the end of that
time he co
work IL
_, not involve muce physical exer-

else.
fin

decided that we will epond the Sinter in

--_e
Denver and leAxepeeeef to be there ecgain before moving down the mid-

dle of Uctober, co I will have opportunity to seeak to friends of
mine there end see if I can get him something to do. I have taken
a house in Denver and with it a complete outfit of servants, which
ie pert of the bargain, co it will not be possible for me to give
him any steady employment, but I feel pretty certain of being able
to get him something. Dr. Sewall says that he should be in Colorado a year, the apex of his right lung being involved' and the upper
part of his left 114ng being slightly affected, but it is a very
slight case and the Doctor thinks he can pull him through in very
good shape.




Sincerely yours,

Ystep Park, Colo.,
Ceptomber 15t1, 1916.

dear Judge:

Thanks for your personal latter of the 11th which was

a ral "clean-up."
The 1.ationa1 Bank Act as amended, etc, compiled hy the

Comptroller, and the Burton Bill have both reached we, also, the
stenographic minutes, but I have not yettlaceived the Clayton Act
with the Korn wasndment, which I presume will follow, together
With tne data in cJnanoction with private banlier directors.
I am awaiting with keen interest come word from Lir. Jay
about the Bank of England matter.

In the meantime, I huvo received a most interesting letter from Pallain, Governor of the

Hank of France, indicating thiAt withir certain liwitations the
Bank of France would adopt n pion somewhat

of England plan.

to the flank

Df coarse, the Frenchman is sovniciou and

lottor suggests various limitations veich will
hive to ha dealt with. I.RM enclosing copy of a translation,
timid Rnd hi

togother

t' original, w:lioh should be held in -LA. confiden-

tial file!' of the bank, and I am '7oing to sok if you will be
good enough to make, or have made, as accureta a translation as

possible to be nont right back to me, al 1 do not dare to reply
to it on the basin or the translation made bore. Some care will
be necessary in putting into U. S. language, the banking idiom




To

J. F. Curtis, Esq.

Sept. 15, 1916.

which Panain employs in his letter, particularly regarding bills,
reimbursement, etc. I would like to have this ac soon as possible, ao he is undiubtedly awaiting a reply, end et the same time,
I think it would be a good plan for the officers of the bank, together with Mr. Woodward and any others who might be available, to

give this careful consideration and let me know your viewse liith

this in hand, 1 will draft a letter and send it to the bank for
consideration beforeit is finally wiled. So much for foreign
business.

About the statement issued by the Comptroller ( which,
by the way, 1 had read and extracted certoAn dry amusement from),

I am sure your decision is right in not having a hand in exposing his ridiculous antics. Whenever excuse or temptation arises
for taking a crack at him, I think of oUr second Conference of
'ehe direct route in these matters is the beet, and
Governors.
think it would ceetainly pay to eleborate your inquiry and send
it over to c;arburg. You can bet a little red apple, he will find
a chance to use it. I zometimee wonder whet will happen to the
dear American farmer if the day ever comes when he is no longer

fed on predigested food.

I have not done any work for the last few days, as I have
had a visitor frorl the :acist, an old friend, Profeosor Crampton,
who has been here discussing some matters of mutual interest, and
have loafed since lest Tuesday. Tell Pierre jay that I am oxpectin nL him to take a day off a write me it good long letter.
My best to you all. With warmest regards,
Sincerely yours,

J. F. Curtis, Eeq.,

Federal Reserve Bank,

Equitable Building,




New York City.

BENJAMIN STRONG
Estee Park, Colorado.

September 20th, 1916.
Dear Judge:

Thanks for your note of the 13th enclosing the full report of the Poston Conference, which I have read with much

interest.

I have read the stenographic record on certain subjects
but let me suggest for consideration by Hendricks and others who
took part in the discussion of the plan of

giving immediate credit

for checks on Federal reserve banks that the whole Conference seems

to have been astray as to one feature of

that

matter.

r.Forgan'e letter stated that drafts of that character

would be drawn by member banks against excees baAances carried with

Federal reserve banks.

I do not believe it would work

The rese vs balances of member banks

the books of the
drawn against

that way'.

are now calculated really from

reserve banks, consequently, unpresented checks

the reserve accounts would not be deducted

from the

reserves until paid and the member banks will very readily acquire
the habit of floating these checks, making allowance for the period
of time that they will be outstanding

and making corresponding re-

ductions in their reserve bahnce as shown by their books.
I am not in favor of experimenting with this matter until
the whole collewLon system is in smooth working order, but I think
Yr. 'organ's theory is wrong and that it would be proven so in ac-

tual practice.
Sincerely yours,

J.

Y.ea9grtise-4444*,

Federal Reserve Bank,
Equitable Building,
New York City.


http://fraser.stlouisfed.org/
SS/VC!-!
Federal Reserve Bank of St. Louis

Estes Park, Colo.,
September 21st, 1916.

Dear Judge:

Yours of the 15th is just received and I am going to Denver

probably on Sunday next to meet Warburg ard will make
quiries about possible work for Laracy.
Dr.

some more in

For the present, I think

ewal1 is positive that he is much better if resting and building

up a bit.

You must have

had a bully time on the cruise, assuming of
I understand that in bad weath-

course, that you are a good sbilor.
the

er and at high speed a destroyer is.most devilish and uncomfortable

Ang known.
Congratulations on your golf record.

i

expect to see Vanderlip around the first of the month and

from him and 'Verburg
ter.

together cr,.n get a good lifie

on the Clayton mat-

I knew that Wiggin would not be satisfied, but had holes that

most of the other bankers would, considering that the amendment to
the Clayton Act wnich helped most of them out of their difficulty,

was put through under the sponsorship of the Federal Reserve

sank of

New York and the Board, and that the riling is on the whole a fairly
liberal one, and I do not think the New York bankers have much to

kick about.

The trouble with some of those fellows is that they do

not know how to distinguish between angood friend and a bad enemy.




To

J. F. Curtis, Esq.

Sept. 21, 1916.

sincerely hope thrt

the English arrangement.

nsing and his pals do not balk,.at

The whole Washington situation makes me

sick, however,-probably as sick as it does you.

By mistake, s letter was sent you yesterday which failed
to enclose those cancelled life insurance policies.

be executed before a notary and I will

They have to

send them on in a day or two.

Thank you very mich for your attention to the matter.
Kopp Laura and the youngsters up iu rassachueetts as long
as possible. I mistrust this epidemic.
Sincerely yours,

J. F. Curtis, Esq.,

Federal Reserve Bank,
Equitable iuilding,
New York City.




Estes Park, Colo.,
September 23rd, 1916.
Dear Judge:

As you have doubtless observed
pondence with

from some

recent corres-

Mr. Treman, the move to procure admission of some

of the New York trust companies to membership in the Federal Re-

serve System failed on

clause of section

account of the provisions of the second

8, of the Clayton Act and, unfortunately, the

Kern amendment failed to provide for an exception in the case of

private

bankers, as wss

done in the case of

other directors of

national banks.

It occurs to me that an

amendment to the Clayton Act,

suitably framed, can be made something of an inducement to the
trust companies and state banks to take
Act is badly framed and confusing in its

membership.

The whole

provision about direc-

torships, but in order to avoid the charge that any radical amendment is

being

attempted, suggest

something in

the following lan-

guage to come at the end of this clause or, possibly, at the end
of the Kern amendment where, however, it would need some slight
change of

verbiasei you may

be able to suggest some improvement

in this language, which is as follows:




"Provided, further that nothing in this Section
shall prohibit a private banker who is a director in
a banking association organized under the laws of the
United States and a member of the Federal Reserve System from also being a director of not more than one

-2-

J. F. Curtis, Esq.,

To

-,ept. 23, 1916.

other banking association or trust company which
iv organized under the laws of any state and both
of which are located in ony city or incorporated
town or village of more than 200,000 inhabitants,
as shown by the last preceding decennial census of
the United Stetes, ig such state bank, banking as-

sociation or trust company is alvo a member of the
Federal Reserve System and is not in substantial
competition with such member bank, and if the con-

sent of the

Federal Reserve Board has been procured, either in connection with the application
for admission of such state bank, banking association or trust company to membership in the Federal
Reserve System or before the person applying for such
onsent has been elected as a director o: such stste
bank, banking association or trust company."
The suggestion of

old bogey about the private

with which they

rities.

this

amendment is sure to raise the

bankers influencing

institutions

are connected in the purchase and sale of secu-

It, therefore, occurs to me that we still further

strengthen the application by incorporating in the Act a provision similar to Section 31 of the Burton Bill.

The only diffi-

culty I now see in regard to the second suggestion is the question of jurisdiction in enforcing such provision if it appears
in the Clayton Act ra4her than in the National Bank Act, for the
Federal Reserve Act.

I am inclined-to think that the

only logical proceedure

would be to have this clause made a part of the National Bank Act,
as its enforcement would depend upon the exercise of the visatorial
powers of the Comptroller of the Currency.

is altogether contrary

O

to the policy we have 411

that further expansion of

the powers of the

tacitly

Comptroller are unwise,

in fact, that all of his powers should be exercised by or
direction of




the

Federal Reserve Board.

accepted

under the

TO

J. F. Curtis, Esq.

Sept. 23, 1916.

If you can dope out something on this for me and aerie

it with that list of private bankers who are directors in state
banks as well as national banks, I would like to prepare a lite.
tie argument to submit to the Board and get this program all
laid out for action At the next session of Congress. At present, the provisions of the Clayton Act are an absolute bar to

certaOly
will not relinquish valuable connections with private banking
firms in order to enjoy possible advantagec of membership about
membership by the New York trust companies, and they

which they gill have many doubts.
Section 13 of the Burton Bill is general in applica-

tion and applies to all national banks and I do not mind saying
that I believe it is much more liable to arouse opposition among
bankers in the country than among the big banks in New

York

City.

I think the graft of this character among the smaller banks is a
far more prolific source of profit to the officers and directors
of the country banks than it ever has or will be to the officers
and directors of the big city banks.
Very truky yours,

J. F. Curtis, Esq.,

Federal Reserve Bank,

Iquitable Building,
New York City.
BS/VCM







Estes Park, Colo.,
October 11th, 1916.
Dear Judge:

Jo not seem to have acknowledged yours or September

27th from 1,t,anchester and thank you very much for all the news.

The subject of greenbacks and silver certificates, aa
well ae the retirement of bank notes, ia going t- be the next
thing on the program.

I have managed to get Warburg well etirred

up on the subject and during the past week have filled Venderlip
with a lot of "dope" which will probably result in his sending
GettUge Roberts out here later on. leeantime, I am getting some
stuff ready for publication after the election, It would be unwise to put it out before election for various reasons.
he weekly report of October 5th gives a lot of inter-

esting office news, but r comfort about those private barkers.
I will be glad to get your reply to my letter with the rough suge
gestion for amending the elatton Act, also, that list of private
bankers who are acting es directors, etc.
The memoranda

in regard to the fiscal agency to rich

referred, are principally those mentioned in your dictation in the
weekly report, including some eugeestions I eent to Delano in the
form of memorenda or letters.

The Committee should be reminded

to investigate the whole subject or redemptions which must be care-

fully studied if any plan is developed which contemplates our takin

-2
To

J. F. Curtis, leg.

Get. 11, 1916.

won't you thank the other officers
who contributed to the memoranda and tell them I enjoyed all the
over Subtreasury functions.
news they sent?

I will try to write tr. Jefferson shortly about his
plan of having the auditors organized and hold regular meetings.
have written
the matter of dividends. -Poughly, I should eay that the Collection
Department whould produce at least 05,000 a year, of which possibly

t25,000 is eutually reduction of regular expenses of the bank prior
to the inauguration of the syetem, ae we now get back a lot of salaries and overhead which we formerly paid out of earnings. With
that addition to our eernings and with the eeneral growth oi our
buzinees, I guess we could afford to pey a dividend up to July let,
1915.

talked with Dr. Sewall lest week about Laracy.

doctor says that aracy hae not strictly observed orders about
eught
r sting and about other details of his treatment.
cold which took the form of laryngitis or oomething of that sort,
and Dr. Sewall said, it went through one of his lungs like :wildfire
It ie absolutely ieeosaible for him
and ut him back seriously
to undertake work of any kind just now and he must bemp
iressed with
the urgency of obeying orders.
Pleese give my warmest- regards to Mrs. Curtis and the
Don't forget the pressure on the State
seme to your good zu-.1f.
Department and the Board in the matter of our foreign arrangemeets.
Everything has etopped pending that decision.
Faithfully yours,
,

11
4




The

J. Y. Curtis, Esq.,

Federal R88:1"Ve Bank,

Denver, Colorado,

October leth, 1916.
My dear Judge:

Your handwritten letter of the 12th from Glen Cove has
just reached me and I am delighted to get all the news.
Your diecouragement io no greeter than mine although

the enumeration of reasons would have to be varied a bit. I am
sorry your holiday is ever, sorry you have a cold, sorry you feel

the pressure of wasted time at the bank and sorry about all the
other difficulties enumerated.
Every time I read a new sneech of Hughes I get thoroughly
discouraged myself.

His campaign may be popular and directed to

the average voter but it is thoroughly undignified and does not
appeal to lee a particle. I do not believe he is pro-German and

do believe he is honest and I still have some hopes that he eill
be,elecefed.

Elliott's letter in the Atlantic Monthly wan a poor
thing and 1 am sorry you did not reply to it.
Poor Clearlie Sabin has had a dose of publicity which I
cannot believe he relishes. Charlie is honest and while he and
some of his associates may have taken a poor time and employed a

poor method to take the pulic into their confidence, I have no

doubt that there was some substantial foundation for what he incautiously handed the newspapers.




To

Oct. 18, 1916.
Possibly the time
The Kuhn - Loeb episode is amusing.

J. F. Curtis, TO:sq.

is arrived when some of our fellow citizens who have had a leg on
each side of the fence have found it desirable to swing one of them
over so as to have them in harmony. An you nay, the whole thing is

very entertaining. In some ways to me it is exceedingly depressing.
About the foreign business, I really think it would be a
good hlaa fOr you to have an informal talk with the State Department
people if it car, be arranged without discourtesy to the Board, and to
do so as promptly as poosible. I would suggest that you deal with
it through Harding and Delano as they form the Committee.

1 do not

think wo can afford to force the State Department by direct pressure
as they may make eome formal ruling which it will be difficult later
to have aet aside. One thing to aecomplish by pressure is to educate them to a real vision of what the plan contemplates. That will
take time and 1 hope that you and the others will see thot they get
all the material possible on the eu' ject.
I have not road the little hook you sent me but am expect..

ing to do so in the near future.

The fact is I had a lot of reading

matter cent me and have been going throughit by degrees. Have be
roodinis over Eartley Withers' books again preparatory to writing some
"dope" myself, also voile books on the war and some Shakspeare.

your advice about the Piping Rock bills explains the one
for which I cont you a check. I will pay them promptly when they
come in.

In the meantime if there is anything I can do about your

membership let me know.

Best regards to you all.
Sincerely yours,

J. F. Curtis, Esq.,

Federal Reserve Bank,
Equitable Building,
New York City.


http://fraser.stlouisfed.org/
BS/VCM
Federal Reserve Bank of St. Louis

4100 Montview Boulevard.

Denver, Colorado,

°Otober 18th, 1916.

Dear Mr. eurtis:

Yours of the lath, slightly delayed by forwarding, has
just reached me.

The inquiry by Mr. Rovensky is exceedingly interesting.

I believe that the bill to which he refer') can br. dealt with under
the regulations of the Board as a bill based upon the export of a
commodity from one foreign country to anoteer foreign country or on
the other hand can be construed as eligible under

he new section

of the Federal Reserve Act, authorizing member banks to accept and

Federal reserve banks to purchase bills drawn for the purpose of
making exchange.

On the first theory, the export seems to be so indefinitely delayed that the bill must be accepted in principle as a
finance bill. On the second theory, the bill is being drawn for
the purpose of borrowing money to carry

merchandise and not to move

it and it seems to me the bill would naturally fall into that category an being authorized by the new section of the Act.
One question is whether two years is a reasonable time
for renewels under exisittng conditions. Personally 1 see no objection to authorizing the business even though renewals for two

years are made on account of the peculiar conditions which ncw ex-

ist.



In normal times I think the practice wouLd be bad.

The

To

J. Y. Curtis, Esq,

Oct. 18, 1916.

period is too long and the bills of a character which should not
be allowed to got into our portfolios in too large a volume.
These are not questions which can be dealt with by fixed rule. Our
banking system should be sufficiently flexible to meet war conditions as well as peace conditions and I am very ottongly of the
opinion that if our banks are to get a foothold in foreign markets
they must deal very broadly with all of these colestions, oo my conclusion is that we should urge the buoineoe and endeavor to get a
ruling by the Bo rd. The procedent will prove to be an important
one.

You have doubtleos read the accounts of the organization
of a great foreign trade bank in London. That bank will have a cap-

ital of 10,000,000 sterling and will receive a large subsidy from
the British Government and will be authorixed to extend longer credits than those generally extended by the London joint stock banks
and accepting houses.

They will not only extend long merchandise

credits in cooperation with the London, Colonial and foreign banks
and in foreign countries generally, but will to some extent eszt:elmd

furnish capital for enterprises.

Ve must let our new customers in

foroign countries know that we can meet competition of that kind.
Won't you lot no know how thio turns out drier it has been submitted
to the Board!
Sincerely yours,
qu

J. F. Curtis, -sq.,

Federal Reserve Bank,
Equitable Building,
now York City.
BS/VCII



Denver, Colorado,

October 23rd, 1916.
My dear Judge:

1 have yours of the 17th.
This whole Clayton Act matter is b
some day and I am sorry thnt it seems to have

so badly et the bank.

If I 0

-/-A)

teing

U to make trouble

d things up

to help, please let

me know.

I note that you dep0 ::-

.15 to my credit at the

Trust Company.

I would n

mind Gig

bit unless there i

ome obje

would save M

rema

.g those stock certificates a
on to sending them out here. It

tertii' some jobe

t the importation of gold, unfortunately, it eoes
us no go

take

the gold unless we have something to pay

n place of it. My euggeotion is that we
out other
only take in the gold when we have an accumulation of silver




certificates and United gtates notes, or when we are able to pay
for it by issuing Federal reeerve notes.
If we buy the gold immediately on arrival without Assay
Office returns guaranteed we run the risk of losimg, so I suggest
that any gold which we take direct should be purchased subject to
adjustment when the Assay Office returns are eventually made.

2
To

J. F. Curtis, Esq.

Oct. 23, 1916.

I am reassurinz Jay in a separate letter about Denver
hospitality whion I propose to escape by rudeness if necessary.
Sincerely yours,

J. F. Curtis, Esq.,

Federal Reserve Bank,
Equitable Building,
New York City.
BSPUM







ee

Denver, Colorado,
October 25th, 1916.

Dear Judge:

The weekly report just received con
pected contribution from you, indicat*

buried

I

ins the meet unex-

a p ose that you have

r. Clayton and have time for a littlaily

corres-

pondence.
I agree to the vied m
e
N

or
1Ni
at t I

sank ae our correspondent int'e
statute, but really

t tg

e,:uld be done.

,

al manner provided by the
had been done during my

eine received.

gold wa

absence in -urope w

tins the Nederlandscee

o

If not,

it

a time, do n t forget that if we put gold
e

in our ree7we-

ccount as a deposit liability,

c

/
we lose aen ce little fee welch they are peying us now for care-1
rying gol
foreign b

In som

I

Ways, however, I would like to see t. is

'nelea-et/ ted even in thee small way and ii might be

desirable to

write them

and indicat

that the statute had now

been amended, pointing out what we can do for lhem and asking
them if they would care to open ouch an

eccount.

I wrote Cr. Jay yesterday about purchases of gold, but
omitted to reDer to one thing which is
transactions.

Just as soon as

ble to make immediate payment for

the

rather4musing

about these

governnEnt findo it impossi-

gold tendered

at the essay Of-

fice, it will direct the gold to us so long as we are willing to




To

J. F. Curtis, Esq.

Oct. 25, 1916.

eive immediate credit. This is exactly the situation in LonThe mint gives depositors of geld the actual sovereigns
don.
d. but makes
when coin is ,7anted, at the rate of 77 s.
them wait ten or twelve dsys. The Bank of England is required

by te statute

make immediate payment at the rate of 77s. 9d.
per ounce or gold born. Gonsequently, th 'lank of Englflnd
gets -,11 the gold. Ne should do the same th . It would automatically give us the control of '41-go1d mjortations.
to

Alfred Aiken writes me that he is urgi4lifn early .conference of Governor and wants o kno f I will sugg t topics
be to take the lost pro..
an w I
to you. I thought the bes
gram and select every topic on
e nlen
These will give the c f

cc:salty for disposi
only other sugiiesti

letter I maiylfri

mette

final action war not

taken.

do and indicate the ne-

that appear on the

program. The

thPt 1 a make are those contained in a
Yr1

before yeserday

1c1 I would like

particulr ly the necessity for a permanent organimote uniformity of methods, etc.
zation to s udy and
Jay will be interested in the enclosed copy
I am also enclosing
of a tolegrnr just received from Thrburg.
copy of my letter sent in reply.
I am really delighted with the progress in the Transit

to emphasi

Department.

The figeres make an imposing show.

We must now

means of bringing in all the state banks in our district
to a par remittance basis and then our part of the work will be
find




3J. F. Curtis, Esq.
done.

The rest is just avF!chinry and organization.
Best regards to all at the office.
Siticerely yours,

J. F. Curtis, 12sq.,

Secretary, Yederal Reserve Bank,
Equitable Building,
New York City.
BSPCM




Form 1207
CLASS OF SERVICE DESIRED
Fast Day Message

WESTERN UNION
iessage

TEL

Night Letter
Patrons should mark an X opposite the class 0 service desired:
OTHERWISE THE TELEGRAM
WILL BE TRANSMITTED AS A
nAY MESSAGE.

I

WitilV

T

Check

AM

Time Filed

NEWCOMB CARLTON. PRESIDENT

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

To

UNION

E

40/

Da- Letter
Ni.t

'VVESTE

Receiver's No.

Denvor,

27,

191_

191.11.

-,

Car

TP1P7r,,,

Stop.-Every detail originnl Brown contra

es

tiLl Wil Lit

13-MWrde-

y nu, ijUJ. stop. Copies 0

.6LmIIL ,cweer1

witn-n
DER'S ADDRESS

OR ANSWER

us11W,1

anJ ac.eptor arsCl a

ot,-6wc-,on holds:

incti daya. Ctop.Thcre is no prunibi Liun
againat acaopi SENDER'S TEL, oy.n
PHONE NUMBER




ALL TELEGRAMS TAKEN BY THIS COMPANY ARE SUBJECT TO THE F.,LOWING TERMS,
To guard against mistakes or delays, the sender of a telegram should order it REPEATED, that is, telegraphed back to the originating office for comparison. ka s- this.
If the unrepeated telegram rate is charged in addition. Unless otherwise indicated on its face, THIS IS AN UNREPEATED TELEGRAM AND PAID FOR AS
sideration whereof it is agreed between the sender of the telegram and this Company as follows:
The Company shall not be liable for mistakes or delays in the transmission or delivery, or for non-delivery, of any UNREPEATED telegram, beyon
_ amount
:d for sending the same; nor for mistakes or delays in the transmission or delivery, or for non-delivery, of any REPEATED telegram, beyond fifty times the in received
iding the same, unless specially valued; nor in any case for delays arising from unavoidable interruption in the working of its lines; nor for errors in cipher or obscure
'as.
In any event the Company shall not be liable for damages for any mistakes or delays in the transmission or delivery, or for the non-delivery, of this telegram, whether
by the negligence of its servants or otherwise, beyond the sum of FIFTY DOLLARS, at which amount this telegram is hereby valued, unless a greatervalue is stated
hereon at the time the telegram is offered to the Company for transmission, and an additional sum paid or agreed to be pail based on such value equal to one-tenth of
r cent. thereof.
The Company is hereby made the agent of the sender, without liability, to forward this telegram over the lines of any other Company when necessary 4,- reach its
ttion.
Teleffams will be delivered free within one-half mile of the Company's office in towns of 5,000 population or less, and within one mile of such office in other cities or
Beyond these limits the Company does not undertake to make delivery, but will, without liability, at the sender's request, as his agent and at hisexpense, endeavor to
et for him for such delivery at a reasonable price.
No responsibility attaches to this Company concerning telegrams until the same are accepted at one of its transmitting offices; and if a telegram is sent to such office
of the Company's messengers, he acts for that purpose ns the agent of the sender.
The Company will not be liable for damages or statutory penalties in any case where the claim is not presented in writing within sixty days after the telegram is
ith the Company for transmission,
Special terms governing the transmission of messages under the classes of messages enumerated below shall apply to messages in each of such respective classes in addition to all
?going terms.

THE WESTERN UNION TELEGRAPH COMPANY

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

INCORPORATED

NEWCOMB CARLTON. PRESIDENT

CLASSES OF SERVICE
' DAY MESSAGES
ull-rate expedited service.
IT MESSAGES
epted up to 2.00 A.M. at reduced rates to be sent during the night
elivered not earlier than the morning of the ensuing business day.
LETTERS

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

SPECIAL TERMS APPLYING TO DAY LETTERS:

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

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

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

NIGHT LETTERS
Accepted up to 2.00 A.M. for delivery on the morning of the ensuimE;
business day, at rate § still lower than standard night message rates, as
follows: The standard day rate for 10 words shall be charged for the transmission of 50 words or less, and one-fifth of such standard day rate for 10
words shall be charged for each additional 10 words or less.

ed above are hereby agreed to:

Day Letters may be forwarded by the Telegraph Company as a
ed service and the transmission and delivery of such Day Letters
all
subordinate to the priority of transmission and
Ty ofrespects'telegrams.
regular

Day Letters shall be written in plain English. Code language
permissible.

This Day Letter may be delivered by the Telegraph Company
Thoning the same to the addressee, and such delivery shall be a
ite discharge of the obligation of the Telegraph Company to
This Day Letter is received subject to the express understandd agreement that the Company does not undertake that a Day

SPECIAL TERMS APPLYING TO NIGHT LETTERS:

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

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

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

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




Form 1207
.',OF.SERVICE DESIRED

Dav Letter

UNION
WESTERN UNION

lessage

Ni;

I

TI

Fast Day Message

Receiver's No.

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

TEL

wv.wiziw

Cheek

AM

Time Filed

NEWCOMB CARLTON, PRESIDENT

FA', DAY MESSAGE.

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

To

191_

1

-except

,,ec4

fifty t

Ther11 ;,F7;

rohibit by re4p1mtion fmnk, yins own tiaceptcnce
unwerrant,,1 4TA ,rfn,-pn(!p. with rig}14, nf insiiilatinn in - ntact it

ruled.

-ton.

,re

renewal with guarantee of discount was

r. stop.
really point

wo,,Lil be

of contention in Brown

credit and the

principal wee accepted

;i1;,rd in Hamlin's letter above mentioned. Stop.

'Aree renewals with

guarantee of discount have been approved, why not five? Stop. Imiortant
out

Fhould not cbrcudo argumnt with,4revieving -11 correondence
randa in

and nrIrno-

riles or t is subject.

Beni. Strong.
4

SENDER'S ADDRESg'

FOR ANSWER

ntvie

Boulevard.

SENDER'S TELEPHONE NUMBER

York 13013




IN sage&

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

NEWCOMB CARLTON, PRESIDENT

CLASSES OF SERVICE
AY MESSAGES
till-rate expedited service.
iT MESSAGES

!epted up to 2.00 A.M. at reduced rates to be sent during the night
elivered not earlier than the morning of the ensuing business day.
LETTERS

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

SPECIAL TERMS APPLYING TO DAY LETTERS:

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

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

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

NIGHT LETTERS
Accepted up to 2.00 AM, for delivery on the morning of the ensuing
business day, at rates still lower than standard night message rates, as
follows: The standard day rate for 10 words shall be charged for the transmission of 50 words or less, and one-fifth of such standard day rate for 10
words shall be charged for each additional 10 words or less.

K1 above are hereby agreed to:

,SPECIAL TERMS APPLYING TO NIGHT LETTERS:

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

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

Day Letters shall be written in plain English.

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

y of regular telegrams.
)ermissible.

Code language

['his Day Letter may be delivered by the Telegraph Company
phoning the same to the addressee, and such delivery shall be a
te discharge of the obligation of the Telegraph Company to
Phis Day Letter is received subject to the express understandagreement that the Company does not undertake that a Day

enumerated above are hereby agreed to:

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

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

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




Denver, Colorado*
October 27th, 1916.

Dear Judge:

lours of the 23rd, enclosing :re. M aren'e policy and
mine, is just received. I am very grateful f r this evidence of
esteem from the bank. The policy in returned
h this o that
it can be put with the others in the tin box.
delivered
Mrs. Moliaree,e.

Your advice that Mr R v nek

proposed acceptance

credit running for two years h e

proved by the Reserve

Board mekee me laugh.

size, this is a gnat comm

pared

with

9o-the-basis
el.

certainly is the came.

for the boner

iv-Germ

is the cese

e\\

f7

the french

the basis of principle, this

The sto #ge of hides in the Argentine
7/
aommCr e after the war, as I understand

this credit, is a very long way from a traneaction

in which an

evelopme

\

ested and is \Sk

f American business

or commerce is inter-

//
on way from creating selfeliquidating paper.

Incidentally, I have been told that warehouse

laws in

the Argentine aee no good and that, with a few exceptions,at Buenos

raises the
most predatory and vicious rats on the face of the earth. The leathAyres, their warehouses are worse

end that Argentine

er may he eaten up before two years elapse.
Very truly yours,

3. F. Curtis, Req.,

Federal Reserve Bank,




Denver,

Colorado,

October 27th, 1916.
Dear Judge:

Various telegrams have cone from Mr

y about the

French credit and the attitude of the Federal\ eeerve Board,
and this morning I received yours of the 26th'114 hich I have
replied in two telegrams as per

n

confirmations.

mail/i4ngs 1 g letter from Warburg
/7
expressing his view which is ten lyy that these long tithe fiy involve guarantee of
-ERA. who
nance credits are unso
high r te we may impose at the Fed
diecount, no matter
era/ Reserve Bank, t cannot s ibly be effective in shifitng
This morning's

I

f this character to

the burden of,dircouAi
banking

tutions.

foreign

I won't send you a copy of his letter

tiees hea d the whole argument directly from him.
There is s Sthinei it, if I ma.y say so., but not very much.
The importance to this country of negotiating credits of all
you d

Y1as

characters abroad just now cannot be exaggerated and 1 think
Warburg is inclined to advance arguments in opposition which

would apply in times of peace but are minor considerations in

such times as the present.
You are also familiar with my views about tnis matter
and I won t elaborate on them

here.

One serious blunder was




-2To

J. F. Curtis, Esq.

Oct. 27, 1916.

made, however, and concerning

that I am writing Mr. Treman.

The bankers who negotiated the credit had no business to put
those two paragraphs in their
out

that

confidential circular

the drafts were eligible

arrange for their sale to Yederil

and that state
reserve banks.

pointing

banks could
It was

quite contrary to the spirit of all our disc

ions with Brown,

Kent and Sonbright's people.

had secured ap...

proval,

Furthermore,

given rather reluctantly,

a n under credits

of 9r-at

,

providing for three renewals; no such approval

given for

drafts

drawn under age.

ver

becn

roviding for five re..

newals, and this alone was a

ydeparture from the terms

of the earlier

a prudent

credits to neces

inquiry before assumin )0.asin4t uIf I

banker making

were in New York

N\

I would like to disci

ine Kent\a bit about being so premature

and taking so much f

granted./

advice from
thing

I await with interest some

Ili: situation before

ut

furt
regards

Sincerely yours,

J. F. Curtis, Esq.,

Secretary, Federal Reserve
Equitable Building,
New York City.

Bank,

sending any-

IrWIS1117

TEL

NEWCOMB CARLTON, PRESIDENT

;EORGE W. E. ATKINS, VICE-PRESIDENT

FILED

RECEIVER'S No.

BELVIDERE BROOKS, VICE-PRESIDENT

I CHECK

ITIME

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

TO

Denver, Colo.,

274

19L__

1

Digitized SENDER'S ADDRESS
for FRASER
FOR ANSWER


%;arc

.

.ederal Reserve noqrd, Washington, ,

arras tc1e6ram jerAie writs me fully Lttitu ,e
r,garding French credit and reseons for cr,r)oedti

Elnj'iron.

SENDER'S TELEPHONE NUMBER

L;n1

ALL TELE RAMS

BY

HIS COMP

T TO THE FOLLOWING TERMS:

ARE SU

To guard against mistakes or delays, the sender of a telegram should o er it REPEATED, th i, telegra-med back to the originating office for comparison.
or this, one-half the unrepeated telegram rate is charged in addition. Unless otherwise indicated on its face. TIGS IS AN TJNREPEATED TELEGRA
ND
AID FOR AS SUCH, in consideration whereof it is agreed between the sender of the telegram and this Company as follows:
I. The Company shall not be liable for mistakes or delays in the transmission or delivery, or for non-delivery, of any UNREPEATED telegram, beyond the
mount received for sending the same; nor for mistakes or delays in the transmission or delivery, or for non-delivery, of any REPEATED telegram, beyond fifty times
he suns received for sending the same, unless specially valued; nor in any case for delays arising from unavoidable interruption in the working of its lines; nor for
env' in cipher or obscure telegrams.

In any event the Company shall not be liable for damages for any mistakes or delays in the transmission or delivery, or for the non-delivery, of this telexam, whether caused by the negligence of its servants or otherwise, beyond the sum of FIFTY DOLLARS at which amount this telegram is hereby valued. unlea,
, greater value is stated in writing hereon at the time the telegram is offered to the Company for transmission, and an additional sum paid or agreed to be paid be.,tr2:
in such value equal to one-tenth of one per cent. thereof.
The Company is hereby made the agent of the sender, without liability, to forward this telegram over the lines of any other Company when necessary to
'each its destination.
Telegrams will be delivered free within one-half mile of the Company's office in towns of 5,000 population or less, and within one mile of such office in other
3ities or towns. Beyond these limits the Company does not undertake to make delivery, but will, without liability, at the sender's request, as his agent and at his
expense, endeavor to contract for him for such delivery at a reasonable price.
No responsibility attaches to this Company concerning telegrams until the same are accepted at one of its transmitting offices; and if a telegram iasent to
such office by one of the Company's messengers, he acts for that purpose as the agent of the sender.
The Company will not be liable for damages or statutory penalties in any case where the claim is not presented in writing within sixty days after the tele
gram is filed with the Company for transmission.
-

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

THE WESTERN UNION TELEGRAPH COMPANY
INCORPORA/ ED

NEWCOMB CARLTON, PRESIDENT

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

rates as follows: One and one-half times the standard night letter
rate for the transmission of 50 words or less and one-fifth of the
initfal rate for each additional 10 words or less. Subordinate to the
priority of transmission and &livery of regular telegrams. Must
be written in plain English. Code language not permissible.



Telephonic delivery permissible. Day Letters re.7i subject to
express understanding that the Company only Ln ertakes delivery

.

of the same on the day of their date subject to condition that

sufficient time remains for such transm 'ssion and delivery during.
regular office hours, subject to priority ofthe transmissiofi of redular
telegrams.
NIGHT LETTERS
Accepted up to midnight for delivery on the morning of the next

ensuing business day, at rates still lower than standard night telegram
rates, as follows: The st a ndord day rate for 10 words stf be charged
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Denver, Colorado,
October :Arth, 1916.

.'ERSONAL.

My deaf Judge:

wp,s interrupted in dictating my rp y to yours of
.1rd and really did not finish it.
I

T.aa

Of courhe, nothing crfr. bedo4;w-nor

that know ne Frank Polk

partment until after election, but

nofficial and informal
siness in a peroonal way

as you do, it might bepossible
That with him explaining the pr po

,nd

ater ongrt.

pri:Tarc his rind for it

a trip lc Lkshington

myi/iat tti

sea

I would almost risk

to put up a strong

rangement vetoed.

fight rether than risk

y last letter in conclusion

iiht 1 want

was thiat your/cpArciate
/

becauee he i

he State De-

for

he Presidency is a lame duck; first,

IA/

cond, because he does nothing but quack.

lame and

This morning \read a t tement

Wnien he enve out at Ogdensburg,

entitled "My k;osrieption of the Presidency" in which he erlys he
--- `'

would undertake to

maintain peace "by a firm and courteous insist-

ence on the rightsof our

he means te emphasise

of a remark

Ciii20/12 at home and abroad."

thecour1eous".

I suppose

I mm reminded a little bit

reported to have been made by the English Foreign Office

in commenting on

rnstorff's activities here,to th.) effect that

the English Government needed no propaganda in America as long as




To

J. F. Curtis, Esq.

Beetorff was allowed to talk.
long as Hughes is allowed to talk.

Oct. 30, 1916.
Wilson needs no campaign as
1

m beginning to think

that it will be a miracle if he is elected.
We are having gorgeous weather here.

I wish cir-

cumstances were such that we could put in 36 holes every day.

Instead of that, I am starting today to take Fonch lessons.
Sincerely yours.,

J. T. Curtin, seq.,

Federal aeserve Bank,
Equitable Building,
New York City.
BS/VCM







November 1st, 1916.
Dear

1

.

Curtis:

Yours of the 23th reporting in deta on the French
credit J4atter bar just reaehed me. I am vc sorry my original telegrcm wac garbled in transmissior. 1, struck me from
the inquiriee you sent that neither you n:r Ja e ld have
read over the previous mcmorande a
respondence in detail
before going to Washirgton,

hat

n ained answers to a num-

ber of the questions asked.
Two things st

that Kent and his a s
two paragranhe in tie
the Board

whole matter.

One is

d hestily in putting those
1 circuler, end the other that
as and inadvisedly in sending out

the tele;

they did to the Reserve Agents. Between the two,
the whole i 7 diva e tly has been botched.
gumente, as you repeat them, might he all
__
well enough in normal times and besiees that .his argument that
bills should be drawn in such a way that they can be driven home
when money rates advance here won't

ed to the money market which is
Secauee the drawing of

hold water.eolief is afford-

under pressure to some extent

finance bills becomes unprofitable end

floating capital moves to
the market where high rates prevail and is invested there in
is defer:ed, but principally because




To

J. F. Curtis, 'sq.

Nov. 1, 1936.

bills thus reducing interest rates.

If we have a bried dis-

count market and the bankers of the worle ere willire,i; to trust

us to pay our debts in Eold, relief from high rates will be afforded to our market by having foreign banker send their money

hereto invest in just such bills as these Freneh bills.
Kent is right in seying that what e are ecing o-day
to finance our present tree is noe.mal under r sent conditions
nonce it must
because the trade ie ebnormel end the
l thine ha eccmc normel.
be abnormal. In other words, abro
I am sure you ere mist

tying that the guarantee

cre4tt74as

6L discount feature of the B

tior of my correspondence

the Board and think a careful ex

with Warburg and all t

never discussed with

pendence with the Board,

1

etc., wilL disclose ht this w e all covered end understood.
You will, I think,
the credit

that t

iscussion of this feature of

in Ntieate_cetrious phrase in Hamlin's

letter

in which tie Board rulvel that section 5200 of the revise l stat1

utes would o y apiyJi4i
meet them a

tur

case the drawers of the bills failed to

and the

commercial credit become in fact

a debt of the drawer tc the acceptor.

Do not hesitate to look

through my personal files if you think it worth while to see what
I. wrote Warburg on the eubject and what he

ker will know where to find

wrote

me.

Miss Par-

the letters.

I. agree with Warburg that the practice which has devel-

oped in this country by

which

acceptors hold their own bills is




To

J. F, Gurtiu, Esq.

a bad one in normal times.

all of these bills.

101/. 1, 1916.

I would like to bee then, market

vA.; effort tc have thut done
in both the Brown and aonbright credits.
having no knowledge of the guarantee cf discount, i cannot
swallow that for a minute. That agreement was in thbir hands
and we have every reason to believe from the orrespondence
2,11-. Warburg
that it was vary carefully studied, at least
and probably by the others.
sorry the
i'hank you very much fur y
letter.
affair proved a fiasoo.
We made

Again iat me sugge

let

rgan, in bars if that can

to retain the gold purchased fro
-

Off i e churgaa.

be done without incur

it of value to have

aould make every effort

' bars lar on.

:et rogue \'40 all o

you.

very

y youro,

3. Y. Curtis, as

,

Federal Reserve Bank,
Equjtable Building,
New York City.

Yie

wi.11 find




NovemLer let, 1916.

Dear Judge:

The list of p ate bner:!hi ch-/
you sent to does not state the names of air
/I
firms, which would be necessary in moking
statement for WrtehIngton.
I know them

all except the thirteen

list.

':ould you mind an

to adJ the names

11

sen6 them to me

ncerely y
KS

F.

rt:,.e, w

...
AkJ.

Fe d er\3.

_ez, Benk ,

EquitARanding,
New York City.

Bspcm

e attached
of the boys
ye firms and

November 8th; 191(%

Dear Judge:

lours of November 3rd regarding my letter to Pallain
has been read very carefully and I
suggestions are very much

find, as always, that your

to the point.

The chan6ea have all

been mede and i am now returning the original letter which I
have signed, together with two spare copies.
can understand how you misunderstood the suggestion

consideration of this subject by my associates in 'eashington. The letter was a little deceptive in that respect.
about

have never eubmitted the matter tth

Washington, either formally

or informally, nor would I do so except through the benk.

What

I intended to say and should have said, was that no specific

transaction was possible until a general
and we had

ruling had been made

the neceeeery authority to do busirees.

On the other

hand, it is unnecessary and really undesirable tc expose the workings of our complicated machinery to our prospective foreign correspondents and I really should

not have

Pallain the impression in my letter that

been guilty of giving
every time we wanted to

buy some bills we would have to get permission tth turn around. I
think your suggestions very much improve the letter and I am
grateful to you for giving it careful thought.




2
Jo

Mr. Curtis.

Nov. 8, 1916.

As having some bearing en this matter, I am occupying
part of three afternoons a week out here tp_king French lessons
and maybe some day, with +he assistance of my eleven year old
daughter who speaks French quite well, I may be able to order a
meal, if not nego+iate a banking connection, in French.

'Incerely yours,

Curtis, Esq.,

Federal Reserve Bank,

Equitable Building,

New York City.
BCPCM




November Gth, 1916.

Dear Judge:

Thanks for yours of the 30th.

I am glad to get the last news abou

tho French

deta.Lis wnich have also come to me from Warbu g

credit

he important

thing is really that public discussion/with inevltable critieism
and possibly abuse, has been avoid

Thank you for advising
I have read Mr. har

the letter to Cokayne.

1g'sgØéesa and do not get the

same impression that you do about ouk foreign arrangements.

vcr, r at 1444t

iiarding is strongly du
/

him Of concluding the arrangerets

Mr.

wasp when I last saw

promptly and I hope we can

take it up right afte'\ lectio .

i
had to sea that more of the United States 3s

are

being sold

The Sys e:- holds too many and we will be glad to

have the c

later

I

This-iae ,v
heavy mail day so I will add no more now.
Best regards to you all.
Sincerely yours,

J. F. Curtis, Fsq.,
Federal Reserve Bank,
Equitable Building,
New York City.

BSPCM




16

November 14th, 1916.

Dear Judge:

Thank you very much for yours of he 10th which seems

to straighten out all the insurance matter and I will ask
en i arrives.
Mrs. TcLaren to write up the reg
uld hardly
the only question arising

My experiences with accident insuranc

Justify continuing such p
as to Mr. Coe would be
that I have treated Mr.
intention of doing.
policies run of
t might b
rest for the m ent.
Sincerely yo

J.
Cu
re ral Reserve Ba
Es
table Buildin




N

York City.

cies and 1 really feel
le shabbily which I had no

sing to let the accident
ell to let the matter

November 14th, 1916.

Dear Mr. Cann:

am grateful to you for the in o caution sent
with yours of the 10th concerning which I
ask a couple of questions:

e--

in

stand

bullion, $135,000,000.

held in th

this

was

t I want is the toin th

n and bulli

applies to

,e

interpret to

that

d States, or simply

the holdings of t

The

in

d gold coin and

tie Chronicle January 11

tal suppiy of

first

tatement publi

question, you say the Treasur

the total stock

nt still to

2

not the Tr

United States.

second

I

questien which

Bury holdings,

(includ-

ificates), but the total
sto

in the country.
Don't both

Ban

about the silver holdings of the

of England.

ou keep

well and busy end happy and

send my best regards.
Faithfully yours,

H. V. Cann, Esq.,
lederal Reserve Bank,
Equitable Building,
New York City.
BS/Veli



November 14th, 1916.

Dear Ir. Curtis

This is in reply to the Weekly Rs.rt of November 9th.
I will be glad to read the Commit

e report of the dis-

cussion of finance bills.
address I

The course propesed respecting Mr. Th
think is wise.

I find. Kenz

s repor n various acceptance decularly his account of his

velopments most interesti

visit wiih Mr. Dar

only get the Board to deal
ter, we may beat out

in a broad way
those

London b

s in the long

gument can be
t wil

in rate
have

strongly emp
it.

n and I do not think the arsized that

it is the difference

er will find its level and if We

e cheapest money market in the world, we are

going to do

the business so far)s our banking machinery permits.
sub

t of accepta
am

On this

credits, I am for a wide open market.

vor of dealing with the government bond mat-

ter as suggested by Warburg and we can now afford to buy more 2s
and go on selling and converting resulting long 3e.

On the oth-

er hand, it wou1,1 be unfortunate to have another scramble such

as occurred a year ago.

Why can't the regular Uraii.O.pd States

Bond Committee handle this for all the banks?




To

Nov. 14, 1916.

Ur. Curtis.

These are all the points in the Weekly Report which
seem to require any comment.

about

Thank you for yours orthe 10th
I will hold it until I get yeurlurther s

and realize

amendment

that the one I son

the Clayton Act.

gestion about an
ou was very

rough.

That National Bank of Commerce hi

credit strikes me

stretch when one

hat it is extend-

as a pretty long
ing credit

for

two years to finance the commer

ders that the Board balks

countries, and when one fur
at an 18

months

ench

credit

importers,

every dol-

purchase of American prod-

lar of Which will be app
ucts which we

f two foreign

are sal

andsome prices,

there is

S amusing, to

feminine "consis

a

say the

least.
ose bonds to Chicago is straightare sometimes a little too smart.

I am

ened out.

Thos

Best regards
6

J. F. Curtis, Esq.,

Federal Reserve Bank,
Equitable Building,

New York City.




.anks for your

cerely yours,

letters.

November 22nd, 1916.

Dear Ur. Curtis:

otter of the 17th.

Thank you very muce for your 1
was glad to hear just what had been doing
Is it not strange that th

other r

matters as -Leese 7Inited States bo a transaetio

-able to apprehend the spirit
conducted!

It is all righ

ia a criminal and heinous

tread on

erve banks in such
eem entirely un-

these oeerati

s should be

tread on our toes, but it

happen inadvertently to

p to straighten out the govern-

theirs.

character enough to ignore

eent bond business
the Uomptroller'

tatter

;arburg

hold this nersonal view, I think

nwithstan

out a

eference to L

op a

fferential bet

have

r.

others may not fully coincide

to-day which pose
with.

addressed to

.

Warburg we can afford to gradually develn

commercial and financial bills which

renewal pp

right about the investment allotments.
have now reeched the point where dividend liability should be takead

en into consideration,

consequently, net earnings should be the

fiiiies on one side and expellees, plus dividende, on the other
sidett
-




-2Nov. 22, 1916.

Jr. Curtis.

To

Those humorous remarks of yours sometimes make trouble.

They remind me of the old fashioned quinine pills which we used

licorice and sugar - it

to take covered with

was fatal to chew

them.

You hage never finally written me

misunderstanding of

bout that curious
aarantee of dis-

the Board's in regard to

count in the Brown and Bonbright cc

now that it was

its

made clear to the Board and I would like to see

in our office

written evidence of that fact

ar. Trem
of these delegations of :p

day about the aCvisability

I wrote

ers going to Nashington.

There are both advantages and d

We want all the coopera-

take to have suc

d hut we do not want to create

tion possible wi

nagement of the Reerve Bank is

the impress
a Board 250

way.

,That you wr te me qbout

would

ike to get at

and Yr.

vantages, but on the whole, I
ntages and it is a mis-

think the disadvan

vested

eman ough

Starek is

most intereRting.

facts of the matter.

Jay

o have it constantly in rind that at the

representations should at once be made to the
?lashington in regard to the appointment of a successor.

our district,

a matter of greatest importance to the bank and
5.

You and

I

ion of any change in the office of examiner in

very first

in

,e scrap of

Board
It is

nothing should be

allowed to stand in the way of exerting every influence to get a

a

man like




. iDeabody.

3
To

Nov. 22, 1916.

Mr. Curtiss

About the Sposutia Island Rod & Gun Club share, would

you mind calling up !Ir. Corey, telling him that I had an inquiry
from n friend of one of the members of the club the other day,
and wrote him that I would sell the stock for t,5,000 but I gave
him no option. I suggest your telling UJ- 'orey that if he wants

it, it would be het for him to telegraph m out here at once as
of course, I would prsfer to sell i to him ther th,tfl a stranger.
What you say about the snrier party

the Colonel
ign was

simply confirms my convic*ion

Republican c

wretchedly managed and it

epuhlican party, if it is

going to continue in exi

ome new blood behind their

-candidate.

al's letter to NI'. 7reman

reply fully to y
on, of the Gre
night.
write y
stop (
had ±i

Lyonnais, is expected here tong meeting with him and will
also urge him to
evolope.

the hank to v'-sit with you if he has not already done so.
All answer y.ur letter on the Clayton Act after I have

to study it
heartily for all the news.
Sincerely yours,

J. F. Curtis, Esq.,

Federal Reserve Bank,
Equitable Building,
New York City.

BS/VCM



UNION
\

Forna260

WESTERN UNION

INTEL

RGE W. E. ATKINS, VICE-PRESIDENT
ITIME FILED

'E VER'S NB;

AM

NEWCOMB CARLTON, PRESIDENT

BELVIDERE BROOKS, VICE-PRESIDENT

CHECK

1-11

D the following Telegram, subject to the terms
.n back hereof, which are hereby agreed to

iioserva 3aak,

Equitable duilding,
now iork Cit

Accc*- rpj'.5 Jr e

november 30t.a, 1915.

eLA

Certificsto in my box is endorsed. top.
lease d(!illi;:r and aave proceedr poid to my credit at 2an'xers
rust Com.aai.
nenj. Strong.




ALL TELEGRAMS TAKEN BY THIS COMPANY ARE SUBJECT TO THE FOLLOWING TERM

To guard against mistakes or delays, the sender of a telegram should order it RUEATED, that is, telegraphed back to the osiginating office for onir
For thi one-half the unrepeated telegram rate is charged in addition. Unless otherwise indicated on its face, THIS IS AN UNREPEATED TELEC
PAW FOR AS SUCH, in consideration whereof it is agreed between the sender of the telegram and this Company as follows
The Company shall not be liable for mistakes or delays in the transmission or delivery, or for non-delivery, of any UNREPEATED telegram,
amount received for sending the same; nor for mistakes or delays in the transmission or delivery, or for non-delivery, of .iny REPEATED telegram, beyond fifi
the sum received for sending the same, unless specially valued; nor in any case for delays arising from unavoidable interruption in the working of its lines;
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In any event the Company shall not be liable for damages for any mistakes or delays in the transmission or delivery, or for the non-delivery, of t
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The Company is hereby made the agent of the sender, without liability, to forward this telegram over the lines of any other Company when nec,
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No employee of the Company is authorised to vary the foregoing.

IN

NEWCOMB CARLTON, PRESIDENT

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TELEGRAMS
A full-rate expedited service.

NIGHT TELEGRAMS
Accepted up to 2.00 A.M. at reduced rates to be sent during the

Telephonic delivery permissible. Day Letters received sI
express understanding that the Company only undertakes d,
the same on the day of their date subject to condition that
time remains for such transmission and delivery during rq
hours, subject to priority of the transmission of regular

night and delivered not earlier than the morning of the next ensuing
business day.
NIGHT LETTERS
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Accepted up to midnight for delivery on the morning (
ensuing business day, at rates still lower than standard nigl
A deferred day service at rates lower than the standard telegram
rates, as follows: The standard day rate for 10 words shall
rates as follows: One and one-half times the standard night letter

rate for the transmission of 50 words or less and one-fifth of the

initial rate for each additional 10 words or less. Subordinate

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Must be written in plain English. Code language not permissible.



for the transmission of 50 words or less, and one-fifth of gut
day rate for 10 words shall be charged for each additional
less.

Must be written in plain English. Code langua
Mail delivery, postage prepaid, permissible

missible.




Decel,ber 4th, 1916.

CONFIDENTIAL.

Dear Judge:
With greal fortitude and selfrestra
suppressing any expression of my innermost t

1 have been

t,

ghts on this

pronouncement of the ieeerve Board.'

o

cause of your letter of the 29th which I

so now be-

'as mig

71ad to

get.

g to the

.1hank you very much

matter and for the news abou

f

Spesutia

t'.ontclair,

which is

really cheering.
Now about t
of

t down in the boom

my heart I thi

ndefceeible, illogical and

unsound proceeding
tine.

y have been taken at this

It

thet it waR inspired perily

exhibit so often whcn courage is ceded, and parts by a dee:ire to have a hand in matters
with w h they have r ly no concern; by the latter, meaning
by timi

ofi the kind

*hat inv

re do w

Unfortura

ankers

their money.
1y, opportunity was me.de for them to ti±ke

just this course by Davieron's visit to Washington when he
quite poseibly made some requests which they considered to be
unreasonable.

Ilhese

linketing parties to Washington

good just now and I should have thouget tat

would have learned

it long ago.

do no

Davisson and others

No matter how honest may be




o "-r. Curtis.

Dec. 4, 1916.

their intentions, it always seems to arouse distrust to have
a Wall Etreet man go to Washington askine, for anything.

fear you and I will never live to see the day when this antagoniem will b.s overcome.

At any rate, I can be thankful that I was spared the
humiliation and embarrassment of trying to a .ver quections
from friends whd wished an explanati n of t i extraordinary
,nouncement.

'Then you have time, p

Dnally telling me all the
I hope your '!:,?.shin

the turkey certainly was and 1
joyed it and the th

J. F.

Feder
Equl
Ne

Reserve Bank,

ble Buiiding,
ork City.

down and wri

Lae per-

like to know,

g is a great success;
tell you how much I enhad me in mind.




December 6th, 1916.

Dear Mr. Curtis:

As you made the major contribution t. the Yeekly Report

of Decembcr 1st, I am writing to thank you and
all the information

which it

e o+here

for

contain

Mr. Warburg's action in telephoning you ses me as
rather unusual and
fect of the Board's

indicating p

me concern over the ef-

statemen
uying bills, i, is very dif-

About the bank's poll

ficult for me to arriv

on or

ono

nces are that the

without being right
present call money

atea, reported

will not last and

of rates, it would seem to be

course so far as I can

the pro

One difficult
cumulati

matter

to 10 %,

k is qble to go right through

ma

the period

make any suggestion

of too large

judge from here.

hich would be experienced is in the acline of any

one name and

there the

on must be handled with the utmost skill

of

The best

end delicacy.

way to meet it, of ccurse, is to

get en-

dorsements and where bills come in with one or more endersers of
good standing, it seems to me our lines can be correspondingly
increased.

On

the other hand, if

the lines

get too

large

with-

out endorsements, it would be just as well to take the matter
up personally with the interested parties,

somewhat as suggested

ste




-2-

To

Dec. 6, 1916.

Mr. Curtis.

by Jim Brown.

If we raise our rates, it should not be the reg-

ular discount rates for member banks, which ought to be a very
steady rate, but rather the rate for open market purchases of
bills, and I would certainly hesitate to cha ge that materially
until our portfolio got considerably larger.
loaded ourselves, undoubtedly sore of the ot e
that are shot of investments would

If we get over-

reserve banks
e increased

proportions temporarily.

Whenever the pronouncun
land matter, won't you asce
State Department took and 1
The turkey wa
Please give my war

J. F.
Fede
Equ

New
BS/VCM

rtis, Esq..
Reser-ye Blink,

ble Buildingm
ork City.

made in the B

k of Eng-

.

f any, position the
all the particulars!
e and greatly enjoyed.
ther contributors.




UNION

YES
4.' 00'. 0
44

''

b,

.

Sin a
-.."'

AI

TTER

NEWCOMB CARLTON. PRESIDENT

:GE W. E ATKINS, VICE-PRESIDENT

TIME FILED

EIVE PS No.

1

BELVIDERE BROOKS, VICE-PRE

CHECK

1

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

December 7, 1916.

J. F. Curtis,
Federal Reserve Bank,
New York City.

Jay simply telegraphed State Department decision favorable
without particulars. Stop.

Will prepare necessary letters

and suggestions about procaedure when details received.
Stop.

Meantime suggest advisability Treman discussing mat-

ter at Governors Conference along lilies in my recent letters.
Benj. Strong.
Charge Paid,
Benj. Strong,
4100 Vontview Boulevard,

Teleokone York 1308.

Decenber 7th,

Dear Judge:

111W-

I am sending e che k for
nay last ronth's charge st the Piping

useure.theA it origi
sr appetite.
Since

i.0urti

Federal R




Esq.,

rye Bank,

quitable uilding,
Ne
CM

ork

8

0 to

ith yoUr third

Decembei 7th, 1916.

My dear Judge:

It was very good of you to write we
the

o fully about

ruling of the Federal Reserve Boa d mentiu d in my 1e4-

ter of October 18th

to Mr. Treman.

esses me

'.:he matter

somewhat as follows

old in the hands of

The present method
the reserve agents and notes

g against it undoubt-

edly was based upon recommendatio

accountants of the
or. recommendetions

Board in the first

No doubt the account-

of Gounuel as to

according 4o

ants arrived at t
ing

methods,
his opir

n

plan of accounting which the
As an accounting matter, the plan is

in support o

sired to adopt

not co

ect anyway.

rect obi

a practical
include the
. ency

this

lie the Federal
Federal

+ions of

tion to redcem

reserve notes are di-

Government, t}

primary obliga-

ie notes still rests upon the-Teserve banks as

matter,

notwithstanding

that their books do not

notes as a direct liability.

or inaccuracy arises in regard to the

gold- is se i aside

The same ircorsist-

gold itself.

in the custody of the reserve

it would be impossible for



mitted to Elliott, who gave

ch it

Board

accounting

the bank to convey

:dine

agents,

absolute title to

-2
To

Dec. 7, 1916.

Mr. Curtis.

the reserve agents without any right of recovering ownership

of the gold so long
the notes.

somewhat analogous to the

It is

ehant.who draws a draft on his

The banker

nker.

esent

accounting method is

show their liability on

wrong because res

As an asset the gold they

ding
from rese:

As to the le

ia really con

entirely

at all of t

the transae-

et it with an asset in
t the dl.aft.

the shape of cash p

banks m

ant,

would show a liability

for the amount of the draft and

can rec

The in

bank in

tion, if he kept his books

notes outs+

e, entitled

He is, of c

upies the position o

I am con

son the drawer

for aome r

to a return of the fund held by

argum

deposits money

banker to enable him to meet the dr f.

accepts the draft, but at maturity
of the draft himself pays it off,
who

case of a mer-

hanker in favor of a creditor

and either at the same time, or subseeuentl

with his

obligated on

as the reserve banks remain

s when they redeem their notes.
aspect of the mater, I think your
In order that the reserve
usive.
echarge

from their books any record

- outstanding, and gold held against them,

it would have b,en
reserve banks might

statute to state that
"extinguish" their liability on these

necessary for .;.he

notes by depositing gold with the reeerve agents instead of

stating as it does that
that operation.




they may "reduce"

their liability by

-3'r0

Mr. Curtis.

Dec. 7, 1916.

On the whole, I am rather sorry that the Board pursued the policy which has now proven to be unouccessfu/ of
asking Congress to amend

deal

the

statute without trying first to

with it by different accounting methods Ind possibly

is unwise to attempt to chenge after
Beard's recommendation.

May it not be wort

to submit this correspondence
Board for their

Congres

bile, however,

consideration!

is the doubt

whether we could count the

ifferent bookkeeping

method were adopted.

ficelly pledged to redeem

odd be ,=ccomplished

specific notes, it
by any change.

r to

reserve agents as part

of our general reserve even

now what you think about

particular p

is
ast night an

The

snowfal
ahead

t from here.

is every

us.
Many thanks f

your letter.
thfully yours,

J. F. Curtis, Esq.,

Federal i-.eserve Bank,

Equitable Building,
New York City.
BS/VCM




has refused th-te.,

the Reserve

or a s

The one point that tr

this

,

We had a little

aT,pearance of cold weather

December 8th, 1916.

Dear Judge:

Just a word about the program for t
In general, I think

item 6 which are really

there are a lot

detail and

time and could

up the Governors'

Conference:

headings under

flowed to take
be disposed

a

meetings

of transit men, auditors, etc
I am greatly impr

lishing uniform rules
the

governin

collection depart

not followed in th'
ter on and I shou
be covered by agre

e necessity of estab-

ixing of cost of handling
uniform practice is
ism i bound to develop lah time that this matter
banks or by a ruling of the

Reserve B
Item (h) to me is a red flag.
o open

to be,

incline

the d

to recommend.

of any cla

be studied in

It is far too soon

as wide as some of the

Governors seem

The matter of immediate availibility
should mot be dealt with alone, but should

connection with the whole subject of domestic ex-

change.
A Committee of Governors should

with the matter of

be appointed to deal

numbers on checks, taking it
the American Bankers Association.




district

up through

-2
To

Mr. Curtis.

Dec. 8, 1916.

Item 6 (n) suggested by Mr. Miller is a very dangerous
It seems to me that on no account should the reserve banks

one.

deal with the matter on a charity basis.

There is no

necessity

for enlarging the argument.
item (s) should be dealt with by

nding committee

to which committee all reports of suggested ch

made whenever queEtions arise about

ges should be
is committee

could come to the Governors Conferences with defin

suggest-

Otherwise, much time is

ions.

item 4, which 1 pre

o the

special committee

of 25, I would like to see d

if possible, by a joint

committee of the

and the Federal

Federal

Banks, bringing the

bee

44411%

direct,

Reserve

contact

with

the whole system.

Item 9 i
Reserve Agent

tify

j

i

t has been referred to the

otion

by both

Item 12,

nizations.

I h ve already telegraphed you about.

Don't

t if the matt

forget t
tion is

fficiently important to jus-

but

assumes such importance that such ac-

fied, I

d not hesitate to pull out of here af-

j

ter the holidays and make a hurried trip to Europe, say with
Aiken, or some of the other Governors as collaborater to wind
up the arrangements over there, and I do not believe the doctor
would object very seriously.
Item 20.

urging caution
this matter.

1 have written

in any method or general propaganda employed in
I greatly fear that no permanent good can be ac-

complished by directing a stream of



la". Treman from time to time

gold

certificates to the

-3To

Mr. Curtis.

Dec. 8, 1916.

reserve banks until the character of our note issue is changed.

The gold simply goes in and out of the reservebanks without any
trap in which to retain it and with only expense to the System.
What could be done, however, and without excit ng much comment

would be to agitate the question of having me

proportion of their reserves with the r
thereby creating a trap, so to sneak
larger

banks keep a
erve banks,

ations of gold
and just the minute that propoganda developebresul
caused any considerable accumul

liver certifi ates and

United States notes, that su

made about sorting this

money soas to keep down the a

the form of silver and 1
This is a
cept to wish you f
deep regret that

J. F. Cu

1718 H. S
Washington,
BS/VCM




on of excess reserve in
t the program exs and again to express my




December 11th, 1916.

Dear Judge:

The certificate books have arri
will ttvrt signing them tome in blank,
good-plan for me to sign
should be so

if so, how many do
signed!

Faithfull

J. F. Cur

4 Esq.,

Federal R erve Bank,
ble
'lding,
1ew York C

rm,

Form 1201
SERVICE

SYMBOL

lessage

_

ter

Night Message

WESTE

ce

47PAEN

Blue

UNION

Night Letter
NL
If none of these three symbols
appears after the check number of
words) this is a dcmessage. Otherwise its charar - is indicated by the
g after the check.
symbol at,

TEL

AM

N EWCOM B CARLTON, PRESIDENT
GEORGE W. E. ATKINS. VICE-PRESIDENT
BELVIDERE BROOKS, VICE-PRESIDENT

RECEIVED AT

SYMBOL

Day Message

Day Letter

Blue

Night Message

WESTERN UNION

Nite

CLASS OF SERVICE

N ite

Night Letter
NL
If none of these three symbols
appears after the check number of
words) this isa day message. Otherwise its character is indicated by the

symbol appearing after the check.

December 11, 1916.
J. F. Curtis,
bhoreham Note],

Washington, D.C.

It is a grerA disap intment to be unable to attend your conference
Denver offers m!ny
Which I hope will be most successful. '-top.
attractions for the nrxt meeting hich I could certairly,ettend
Please giv the boys
if held here or not too far away. Stop.
my best wither for a Merry Christmas and happy New Year.
401.

Benj. Strong.

Charge Paid
Benj. Strong,
4100 Montvie, Boulevard.
Telenhone York 1308.







WESTE

UNION

TTER

NIGH

CHECK

TIME FILED

RECEIVER'S No.

BELVIDERE BROOKS. VICE-PRESIDENT

NEWCOMB CARLTON. PRESIDENT

EORGE W FATKINS, VICE-PRESIDENT

END

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

FormV2284

DAY LETTER.
Dec. 12, 1916.

J. F. Curtis,
Shoreham Hotel,
Washington, D. C.

Agree wisdom discussing foreign matter confidentially with governors
alone. Stop.

Personally am opposed concluding arrangements abroad

without final sanction Res'eriu

ridicule and humiliation to

Board. Stop. It would expose us to

conclude all details

and then have

Board withhold final authority.
Benj. Strong.
Charge

raid,
Benj. Strong,

4100

, ontview Boulevard.




ALL NIGHT LETTERS TAKEN BY THIS COMPANY ARE SUBJECT TO THE FOLLOWING TERMS:
The Western r-nion Telegraph Company will receive not la t, than midnight NIGHT LETTERS, to be transmitted only for delivery on the morning
telegram rates, as follows: The standard day rates for ten words shall be charged for t
, day, at rates still lower than its standar,
L,.. pest ensuing I,
te for ten words shall be charged for each additional ten words or less.
is or less, and one-fifth of such standard
transmission of Ii:
comparisr
" '..r it REPEATED, that is, telegraphed back to the originating off' .IT LETTI
-take,
.lays. the-' .1 night h.
To gm,:
,therwise indicated on its face, THIS IS AN UNREPEATED
letter r:,
tul
7 his, om
ite
/icier of the night letter and this Company as follows:
aeTer
,ration
PAID
1.

abl

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ne amount r

t

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r d,

Inv.

21:

ti

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!ifty

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any case for delays arising f7 ,T,1 unavoidable interruption in the

or

ion or delivery, or for the non-.:
'deli a-Mount this night let:
.oa, and an additional sum paid or a:

mistakes or delay in the tr:
sum of FIFTY
-ed to the Compa

koti

.inl

- 01rnpany whei

on.'- of

INCORPORATED

NEWCOMB CARLTON, PRESIDENT

CLASSES OF SERVICE.
TELEGRAMS
A full-rate expedited service.

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

DAY LETTERS

-

Telephonic delivery permissible. Day _Letters received
express understanding that the Company only undertal
the same on the day of their date subject to conditions
time remains for such transmission and delivery during
hours, subject to priority of the transmission of regul,.

NIGHT I7TTE RS
Accer
ensn'
pro:'

1"11

to m;

for delivery on the morning of
'Ilan standard n
to for 10 won,.

,e prenaid, per.




December 13th, 1916.

Dear Judge:

Thank you for your confidential lett

of the 8th

ond advice of the credit of f-6.20.

SO mu

I am mighty glad that.Mr.

mproved,

similar reporte coming to me als
As requested, I

telEgram to the

hay

ham Hotel about foreign arrn
am replying to the major

vrt

ich I hope is clear, and
of

letter to 1:r. Tremanin or-

der to give finally

what we should nowto

Shore-

best judgeme_t as to

in regardto

reig

correspondents.

he

will show you the
there is a good chance that

en

No. 3 of

to d
must b
cy and a

ur explanati

h the action
very carefully
r a littl

ne announcement had a good deal

the Reeerve Board.
nsidered now in

Proposals for peace

our own matters of poli-

tudy I am going to send some suggestions

on the subjec

thank you very much for your letter.
of the ' ashirgton conference with interest.

Faithfully yours,

J. F. Curtis, Esq.,
Federal Reserve Bank,
Equitable Building,
New York City.

BS/VCM

I await report




2.

To - Mr. Curtis.

December 20, 1916.

This letter is quite confidential and 1 guess you had beeter destroy it.

The combination which caused the trouble was on one side

Davidson's aggressiveness and certain characte

ics of his which

might be described as a little high-handed, buck

'up against the

timidity of various members of the Boar., which i

particularly

liable to be exhibited by those of Hebrew blood.
the fat was in the fire.

Also cc
matters with me in ad-

at times been good enough to

n this case, 1 belt,ve

vance of the event and had t

ncing Jack and Harry that the

could have avoided the episode by

his episode with the

mistake.

trip to Washington
record of the Ariz].

french loan, o

it makes me cry to

ich you have full

hink about it.

also -vo Ha

read, b,

he newspaper
you had written

of

,.ve written Ur.

England

ter and a

just where

position where I

speech

information;

full, which I have not yet

impressed me badly, possibly because
e about Warburg's telephone.

eman a long letter about the Bank of
what similar letter to :,arburg and stand now

of ore - absolutely opposed to putting myself in a

will be subjected to ridicule and possibly serious

criticism, if arrangements were concluded and then consent withheld.
The Bank of France matter will be harder to arrange at both ends, but
I could do it if I were able to go to Paris with
It was just as well

freedom to negotiate.

to take the governors into full confidence

0




3.

To - Mr. Curtis.

December 20, 1916.

in the matter and I hope they were not frightened by the apparent
comprehensive character of the arrangement.
About Seay's proposal, it is exceedingly

ficult for me to

form opinions worth anything or this complicat
without being at home in the thick of it.

ollection matter

I ha

s report and will

study it carefully before writing in
meat unless we have means of cont
then should not be conducted

neerous expertthe developme
.

d even

More on this subject

later.

I continue t'

Play

a little golf

11117 signed all t

I Will finish sho

good repo

om the doctor; he says I can
ther is propitious.
exc nt the 150 blanks, Which

ess unless you advise to the

contrary.

Bee

oards old

t thanks for your letter.
Yours faithfully,

44 ft

Curtis, 1!,sq.,

Podeftl Reserve Bank,
New York City.

Denver, Colorado,
December 24, 1916,

Dear Judge:
My beat thanks for your hand picked let
opening sentence, stating that you were sendi
ment, lod me to suppose that I was
of

the

of the 18th.

The

a gas4 bill for payfor mc; proportion

expenses of the conference.

Enclosed are two more spe
notes, Whic

should go in

'.0Tench Chambe

f Commerce

with the others collected by

Mr. Peixeotto.
About the English arrangeae

will be glad to see the matter

really concluded
in mind that our

I have never had any
ransactions wit

thee nominal at

the Bank of Englaad would be more
realize what a' mistake it would be

any such
ding with tee

epder

handicap as even an informal

hat the busineLs to be done would be nominal

in , .unt. It is 14 . measure an emergency plan and would
;

rgency if we

want

.ump our

thought

never work in

we : handicapped' by such an neeerstanding.

I don't

into the London market in unlimited amounts any

more than

in Washington does, but certainly I don't want to feel
that the New York bank cannot be trusted to use some discretion in such a

matter.
Those three lines about your new aboaeaxe too meagre; tell me all
about the apartment, hoe large it is, etc., etc.




ceertments reself some day and 1 like congenial

I may be lookin; for

neighbor.




2.

To - Mr. Curtis.

December 24, 1916.

The most interesting thing in your letter is the last 11 ragraph

suggesting the possibility of your coming out here.
too, it

dould

be delightful i

every way;

u must come alone, it

will still be delightful and try not to disap
The Starek episode makes me la

.

int me.

How

1 do I recall that

day when we had a nice, frank, friendly, little
that was coming down the road
it may have gone over him.
suggestions
Of the t&Agjap for C
think everyone is die'

If Laura could come

about a steam roller

apparently es

his vision -

ctors, named in your postscript,
reason of directorships, with the

possible excentio
We all go
cleaning up mai
Laura se
clos

tely

once more -t

orrow to spend a week and I am
for the present.

hopping and other matters, and in
..ke that visit.

Faithfully yours,

J. F. Curti
Federal Reserve Bank,
New York City.

I am writing

_or

AWESTE UNION
DAY- TER

Form 2580

WESTERNUNION

W. E. ATKINS, VICE-PRESIDENT

NEWCOMB CARLTON, PRESIDENT

.VER.S No

TIME FILED

BELVIDERE BROOKS, VICE-PRESIDENT

CHECK

1

COPY.
the following Day Letter, subject to the terms
on back hereof, which are hereby agreed to
Estes Park, Colo., Dec. 28, 1916.

ND

J. F. Curtis,

Federal Reserve Bank, New York.
Greatly relieved by your day letter.

If you see no

objection wish you would cable my regrets to Cunliffe and say we hope
to proceed with arrangements by mail.




Benj. Strong, Jr.

ALL DAY LETTERS TAKEN BY THIS COMPANY SHALL BE SUBJECT TO THE FOLL.
The Western Union Telegraph Company will receive DAY LETTERS, to be transmitted at rates lower than its standard te

one and one-half times the standard night letter rate shall be charged for the transmission of fifty (50) words or less, and one-filth of the in.
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To guard against mistakes or delays, the sender of a day letter should order it REPEATED, that is, telegraphed back to the originating of1,..
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The Company shall not be liable for mistakes or delays in the transmission or delivery, or for non-delivery, of any UNREPEATED day letter,
amount received for sending the same; nor for mistakes or delays in the transmission or delivery, or for non-delivery, of any REPEATED day letter, be
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In any event the Company shall not be liable for damages for any mistakes or delay in the transmission or delivery, or for the non-delivery
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"1 or ag,
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The Company is hereby made the agent of the sender, without liability, to forward this day letter over the lines of any other Comptwy when necee
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No responsibility attaches to this Company concerning day letters until the same are accepted at one of its transmitting offices, and if a day letter
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The Company will not be liable for damages or statutory penalties in any case where the claim is not presented in writing within sixty days after the
letter is filed with the Company for transmission.
In further consideration of the reduced rate for this special "DAY LETTER" service, the following special terms are hereby agreed to:
DAY LETTERS may be forwarded by the Telegraph Company as a deferred service and the transmission and delivery of such DAY LETTERS
in all respects, subordinate to the priority of transmission and delivery of regular telegrams.
DAY LETTERS shall be written in plain English. Code language is not permissible.
This DAY LETTER may be delivered by the Telegraph Company by telephoning the same to the addressee, and such delivery shall be a corm
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This DAY LETTER is received subject to the express understanding and agreement that the Company does not undertake that a DAY LETT
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No employee of the Company is authorized to vary the foregoing.

THE WESTERN UNION TELEGRAPH COMPA
INCORPORATED

NEWCOMB CARLTON, PRESIDENT

CLASSES OF SERVICE
TELEGRAMS
A full-rate expedited service.
NIGHT TELEGRAMS

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

A deferred day service at rates lower than the standard telegram
rates as follows: One and one-half times the standard night letter
rate for the transmission of 50 words or less and one-fifth of the
initial rate for each additional 10 words or less. Subordinate to the
priority of transmission and delivery of regular telegrams. Must
be written in plain English Code language not permissible.




Telephonic delivery permissible. Day Letters received subject
express understanding that the Company only undertakes delil

of the same on the day of their date subject to condition 11

sufficient time remains for such transmission and delivery duni
regular office hours, subject to priority of the transmission of regu

telegrams.

NIGHT LETTERS
Accepted up to midnight for delivery on the morning of the
ensuing business day, at rates still lower than standard night teleg
rates, as follows: The standard day rate for 10 words shall be chat
for the transmission of 50 words or less, and one-fifth of such start(
day rate for 10 words shall be charged for each additional 10 worc
less. Must be written in plain English. Code language not
missible. Mail delivery, postage prepaid, permissible.

COPY
N.ephone Message 8:15 P.M. to B.Strolag,Jr, Room 630-32 from J.S.Curtis, Washington,D.C.
[On envelope, stamped Nov. 17, 1913 The Plaza, 8:20 P.M. 8:22 P.M. Tubes]

1011 will probably be introduced on Thursday.

Vanderlip has been fully advised by
I am leaving tomorrow afternoon unless you wire me to contrary at the
Metropolitan Club.

Alephone.







PAGEI ROOM
hS 5%277.J.77,N
NOT I:4

TELEPHONE

paiGE




1700

'tvet04"--

TELEPHONE-MESSAGE
J

19/

MI'

TELEPHONE
MESSAGE

TIrret:A.

TIME

M/k'

,

Room

Pa-0

'Y

PLEASE BRING THIS NOTICE TO THE TELEPHONE

)1'

TO CALL
PLEASE BRING THIS NOTICE f0 THE 7ELEPHONE TO SPEAK TO

TO CALL

TO SPEAR TO

MESSAGE FROM




N

ROoM.

MESSAGE FROM

,
i

\.

,,

7

,
(-e_,(--r,Te

e-

TEL No.

it

"

Form 168

Nir ESTEkASENA
WESTERN UNION

TEL

11.M. fif
;24

THEO. N. VAIL, PRESIDENT
ALWAYS

RECEIVED AT the WESTERN UNION BUILDING, 195 Broadway, N. (OPEN

Q31 8 W 2 8
WASHINGTON. DC 17
W BENGAMIN'

snoup
BANKERS. TRUST- CO. NET. YORK

SENATOR W HAS. NOT. DECIDED: HOW HE:. WANTS. TO. HANDLE. T. VATTER:. WILL

KNOW TONIGHT HE: ADVISES: AGAINST CARRY ING: IT. TO. THE.' PRESIDENT
WILL. ADVISE. YOU: AGATN: LATER




.J F. CURTIS.

1




.
'

r

111, M ES FREEMAN aURTIS

TELEPHONE MAIN 4235

COUNSELLOR -AT- LAW

53 STATE STREET
ROOM 905

NOV Z 6 1913

BOSTON, MASSACHUSETTS

-).41

Nov. '.ber 25, 1913.

Benjamin Strong, Jr., Esq.,
Bankers Trust Company,
16 Wall Street,

New York, N. Y.

My dear Mr. Strong:-I have your very kind letter of
November 24th, which I appreciate very much.
I suppose that Mr. Bailey has already

reported to you that we incorporated most of the m4gested
changes which you sent us in Washington in a redraft of
the bill, and also one or two other changes which see-qed
So far as I can
tolimprove the language and grammar.
gather from the reports in the newspapers of the events
in Washington, nothing seems to have come of our efforts.

While there I spoke confidentially to
of Commerce
one of the men in charge of the new Camber

of the United States regarding the plan of having another
this new bill.
poll taken of the members with respect to

countrywide
As you may remember, the Chamber conducted a
poll in connection with the Glass

Owen bill, with the

result that it was overwhelningly endorsed.

I think a

in the future for
similar endorsement might be obtained
However, I
the ne7 bill if it was properly engineered.
to the fact that
did nothing further in this matter owing



Benja,nin Strong, Jr., Esq., --2--

Senator Weeks wanted to handle the bill in a somewhat
different way.

The Secretary of that Chamber of Commerce

is now in Boston recovering from an operation for
appendicitis, and I can easily get in touch with him
alm4-as he is quite a friend of mine, if you should care

to have any action along these lines.

As a matter of personal curiosity, I should
like to hear what, if anything, has happened to the bill
so far, if you have been advised.

Many thanks for your kind invitation for
luncheon, which I shall accept with pleasure on my next
visit to New York.




Yours very sincerely,

1EC.FJvED AT

The Po

TELEGRAM

DELIVERY No.

elegraph-Cable Company (Incorporated)transmits and delivers this message subject to the terms and contlitinns printed on the back of this blank.

el-540

[DESIGN PATENT N

Z 32 :It

D629J

E.3

BOSTON MASS OCT 26-14
BENJAMIN STROMG JR

BANKERS TRUST CO 16 WALL .3T NEWYORK
WILL COM E TO ,NEWYORK WITH PLEASURE TOMORROW MORNING

JAMES F CURTI S




gr

POSTAL TELEGRAPH-CABLE COMPANY-a-THE COMMERCIAL CABLE COMPANY

[1, 2 AND 161

THE GREATEST TELEGRAPH AND CABLE SYSTEM IN THE WORLD.

EXTENDS OVER TWO-THIRDS OF THE WAY AROUND THE EARTH.

THE POSTAL TELEGRAPH-CABLE COMPANY (INCORPORATED)
TRANSMITS AND DELIVERS THE WITHIN TELEGRAM SUBJECT TO THE FOLLOWING TERMS AND CONDITIONS.
To guard against mistakes or delays, the sunder of a telegram should order it REPEATED; that is, telegraphed back to the originating office for comparison.
For this, one-half the unrepeated telegram rate is charged in addition. Unless otherwise indicated on its face, THIS IS AN UNREPEATED TELEGRAM AND
PAID FOR AS SUCH, in consideration whereof it is agreed between the sender of the telegram and this Company as follows
I. The Company shall not be liable for mistakes or delays in the transmission or delivery, or for non-delivery, of any UNREPEATED telegram, beyond the amount
received for sending the same; nor for mistakes or delays in the transmission or delivery, or for non-delivery, of any REPEATED telegram, beyond fifty times the sum
received f sending the same, UNLESS SPECIALLY VALUED; nor in any case for delays arising from unavoidable interruption in the working of its lines; NOR
FOR ERRORS IN CIPHER OR OBSCURE TELEGRAMS,
In any event the Company shall not be liable for damages for any mistakes or delays in the transmission or delivery, or for the non-delivery of this telegram,
whether caused by the negligence of its servants or otherwise, beyond fifty times the REPEATED telegram rate, at which amount this telegram, if sent as a
REPEATED telegram, is hereby valued, unless a greater value is stated in writing hereon at the time the telegram is offered to the Company for transmission, and an
additional sum paid or agreed to be paid based on such value equal to one-tenth of one per cent. thereof.
The Company is hereby made the agent of the sender, without liability, to forward this telegram over the lines ot any other Company when necessary
to reach its destination.
Messages will be delivered free within the established free delivery limits of the terminal office. For delivery at a greater distance a special charge will be made
to cover the cost of such delivery.
No responsibility regarding messages attaches to this Company until the same are presented and accepted at one of its transmitting offices; and if any message is
sent to such office by one of this Company's messengers, he acts as the agent of the sender for the purpose of delivering the message and any notice or instructions
regarding it to the Company's agent in its said office.
The Company shall not be liable for damages or statutory penalties in any ccse where the claim is not presented in writing within sixty days after the
telegram is filed with the Company for transmission.
The above terms and conditions shall be binding upon the receiver as well as the sender of this telegram.

NO EMPLOYEE OF THIS COMPANY IS AUTHORIZED TO VARY THE FOREGOING.
CHARLES C. ADAMS, VICE-PRES:DENT.




CLARENCE H. MACKAY, PRESIDENT.
EDWARD REYNOLDS, VICE-PREST AND GENERAL MANAGER.

CHARLES P. BRUCH, VICE-PRESIDENT.

POSTAL TELEGRAPH
RECEIVED AT

CO MERCIAL CABLES

CLARENCE 11. MACKAY, PRESIDENT.

TELEGRAM

DELIVERY No.

The Po tal Telegraph.Cable Company (lncorporated)transmits and delivers this message subject to the terms and conditions printed an the hack of this blank.
."7477-1.0

/ 355 B 8

[DESIGN PATENT No. 40529]

EOSTON MS OCT29=14
BENJAMIN STRONG J R

2-7 PINE ST NEWYORK
REGRET' I ,CANNOT ACCEPT YOUR OFFER AM WRITING




J

OCT2

1914

F CURTIS

POSTAL TELEGRAPH-CABLE COMPANY-Nig-THE COMMERCIAL CABLE COMPANY

AND tel

THE GREATEST TELEGRAPH AND CABLE SYSTEM IN THE WORLD.

EXTENDS OVER TWO-THIRDS OF THE WAY AROUND THE EARTH.

THE POSTAL TELEGRAPH-CABLE COMPANY (INCORPORATED)
TRANSMITS AND DELIVERS THE WITHIN TELEGRAM SUBJECT TO THE FOLLOWING TERMS AND CONDITIONS.
To guard against mistakes or delays, the sender of a telegram should order it REPEATED that is, telegraphed back to the originating office for comparison
For this, one-half the unrepeated telegram rate is charged in addition. Unless otherwise indicated on its face, THIS IS AN UNREPEATED TELEGRAM AND
PAID FOR AS SUCH, in consideration whereof it is agreed between the sender of the telegram and this Company as follows:
The Company shall not be liable for mistakes or delays in the transmission or delivery, or for non-delivery, of any UNREPEATED telegram, beyond the amount
received for sending the same; nor for mistakes or delays in the transmission or delivery, or for non-delivery, of any REPEATED telegram, beyond fifty times the sum
received hr sending t,e same, UNLESS SPECIALLY VALUED: nor in any case for delays arising from unavoidable interruption in the working of its lines NOR
FOR ERRORS IN CIPHER OR OBSCURE TELEGRAMS
In any event the Company shall not be liable for damages for any mistakes or delays in the transmission or delivery, or for the non-delivery of this telegram,
whether caused by the negligence of its servants or otherwise, beyond fifty times the REPEATED telegram rate, at which amount this telegram, if Sent as a
REPEATED telegram, is hereby valued, unless a greater value is staed in writing hereon at the time the telegram is offered to the Company for transmission, and an
additional sum paid or agreed to be paid based on such value equal to one-tenth of one per cent. thereof.
The Company is hereby made the agent of the sender, without liability, to forward this telegram over the lines of any other Company when necessary
to reach its destination
Messages will be delivered free within the established free delivery limits of the terminal office. For delivery at a greater distance a special charge will be made
to cover the cost of such delivery
No responsibility regarding messages attaches to this Compauy until the same are presented and accepted at one of its transmitting offices; and if any message is
sent to such office by one of this Company's messengers, he acts as the agent of the sender for the purpose of delivering the message and any notice or instructions
regardiag it to the Company's agent in its said office.
The Company shall not be liable tor damages or statutory Penalties in any Case where the claim is not presented in writing within sixty days after the
telegram is filed with the Company for transmission.
The above terms and conditions shall be binding upon the receiver as well as the sender of this telegram.

NO EMPLOYEE OF THIS COMPANY IS AUTHORIZED TO VARY THE FOREGOING.
CHARLES C. ADAMS, VICE-PRESIDENT.




CLARENCE H. MACKAY, PRESIDENT.

EDWARD REYNOLDS, VICE-PREST. AND GENERAL MANAGER

CHARLES P. BRUCH. VIGE-PRESIDENT.

C".....g4100452m

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RECEIVED
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PIERRE JAY ESO-

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WILL COME IF YOU DESIRE MONDAY THOUGH INCONVENIENT'FOR ME.
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RECEIVED
AT

WOULD IT BE POSSIBLE TO DISCUSS MATTER BY TELEPHONE OR
LETTER?

195 B'WAY
NEW YORK

'ECEIVED

Digitized3' WAY
for FRASER
http://fraser.stlouisfed.org/
YORK
Federal Reserve Bank of St. Louis

JAMES F CURTIS.

Correspondence

FEDERAL RESERVE
BANK OF NEW YORK

Date SPptc.mhpr 17, 1915.
Subject:

Mr. Strong
..rom

Mr. Curtis

CONFIDENTIAL
Governor McDougal dropped in to-day and gave me an account of
events yesterday afternoon in .:7ashington which he thought would interest
you.

He and Governor Fancier attended a meeting of the Board at which

McAdoo presided.

The secretary asked him for his Views on commodity

rates, to which McDougal replied that he was opposed to establishing such
rates, certainly at the present time, as, in the first nlace, he was not
satisfied that commodity 7Dwper was entitled to any preference as a preferred

at
risk, and in the second place, he thought the ratesAdiscounted at his bank
and elsewhere throughout the country were certainly as low as they ought
to go.

The same question was asked of Governor Fancher, with much the

sane reply, which did not seem to meet the approval of those present.
They were also asked about their earnings, to which Yr. McDougal
replied that they were doing what seemed best under the circumstances, although the showing was not very favorable.

The Secretary then asked him

what he thought of assessing the member banks to ma' e up the dop".114.t, to

:which he replied that he hoped no such plan would be given consideration
by the Board as he felt it would be a great mistake.

He also argued that

many commercial banks run behind immediately after organization and that
there should not be any criticism on this score.

The sane question was

asked of Governor Fancher who replied to the same effect, and afterwards
the secretary asked Fancher whether he thought there -:Tas any use of a re-

serve bank in Cleveland anyway.

they both left the meeting feeling some-

what discouraged and with an apprehension that the Board might try to force
the establishment of comLiodity rates by all the banks and Otherwise attempt

to run the banks from 1ashington.

4.1z-ttaa,11



O.- Yr. Harding asked McDougal how he felt about taking more active

,

FEDERAL RESERVE
BANK OF NEW YORK

Correspondence

afteSertember 17, 1915.

Mr. Strong

Subject:

Mr. Curtis

COITFIDENTIAL

- 2-

part in open market operations, by which they explainedthey meant purchase of trade paper from brokers, etc.

He replied that he was opposed

to it at the present tine as he felt that in the existing state of the
money market they ought not to attempt to compete with their member banks.
He stated that some of their member banks had already comnlained that
rates were so low they could hardly make a living.

The#5-)cretary and

Comptroller immediately wanted to know what banks and Er. McDougal said
that he would prefer not to give their names.

Then pressed, he stated

thitone he had in mind was in Peoria, whereupon the Comptroller sent
for all the reports from the Peoria banks, which showed that the interest
rates being charged varied from 5

to 7%.

Mr, McDougal said that he

2444%
thought that was an extremely good showing in view of the 4*00,,,mo4 rates

that had been spoken of in the Comptroller's office and the secretary
agreed that the Peoria banks were all right.

Mr. McDougal also asked

the Comptroller and the Secretary not to make use of such statistics

without making allowance-for the fact that most of the high rates were
on very small loans and did not fairly represent the loan attitude of the
bank.

He also said that the same thing was true

of the statistics

which the Comptroller had obtained with respect to exchange charges.
He stated that a large part of the apparent profit derived from am- ex-

change was in many instances entirely eaten up by the expenses of
operating the exchange or transit departments which had not been charged
in making the AseiAom1a44aa/a.

The secretary and the Comptroller also

admitted that this was probably sound.


J-Fokm


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FEDERAL RESERVE BANK
OF NEW YORK

February 28, 1916.

My dear Governor:

Your letter of February 12th is just received, and I am delighted to get some real news from you.

Mrs. Curtis also received

your letter to her this morning, and was delighted to learn that her
outfit had proved of some service, although fortunately not the service for which the rubber neckpiece was originally created.

Over here there is not much news in the banking world, but
a great deal in the political.

Senator Root's speech at the Repub-

lican State Convention here was a very caustic arraignment of the
President's whole foreign policy and will prove, I believe, to be the
basis of the Republican campaign.

It was a great speech and I hope

you have had an opportunity of seeing a copy of it, as I assume you
have.

Last week ,a good many members of Congress, especially in

the House, were overcome by a sudden panicky feeling that we might

really be forced into a war with Germany if the latter insisted upon

killing

Americans upon merchant vessels armed for defense, and if the

President insisted upon saying that that was not quite the right thing
to do.

As a result there was an effort to stampede him away from that

position and to concede that the Germans were quite right in all they
proposed to undertake.

This stampede apparently assumed fairly large

proportions, so much so that various bills were introduced, some to
provide for a resolution warning Americans from sailing on merchant



RAL RESERVE SANK OF NEW YORK

Hon. Benj. Strong, Jr.

.2.

shins armed in any way;

2/28/16.

others requiring the State Department to de-

cline to issue passports to Americans who proposed to sail upon any
such vessels, and others directing the President not to attempt to protect any wicked American citizens who might put the administration in
such an embarrassing situation.

Several conferences were held by Senator Stone, Speaker Clark
and Representative Flood, Chairman of the Foreign Affairs Committee of
the House, with the President, and finally the latter settled the excitement for the present by writing an open letter to Senator Stone in
which he declined to take any such course and stated that it was a universally recognized right of merchant vessels to be armed for defense,

and that Americnrs had a perfect right to travel on such vessels, and
that it would be most dishonorable to give up any such rights.

Presum-

ably you have seen the text of this letter complete in the London and
Paris papers.

The really serious part of the situation is that while both
Stone and Flood rallied to the cry of "support the President" they are
each at heart members of the White Feather Brigade and would really prefer to see such legislation go through.

T:ost of the Republicans an-

nounced that they would stand by the President, although Yondell and some
of the others seemed to be in favor of surrendering to the demands of the
Germans.

The situation is, of course, a good deal further complicated by
the Lansing note to the Allies, suggesting that merchant vessels be not
armed and containing the phrase that"this proposal seems so reasonable to

the Government of the United States that it is seriously considering in-

structing its officers accordingly." This memorandum seems to be a pretty
serious blunder, as the Germans will probably feel that they can now go
ahead with a light heart and point to the fact in case of any unfortunate



,/
-SERVE BANK OF NEW YORK

Hon. Benj. Strong, Jr.

2/28/16.

ts

already committed to the es-

results that our Secretary of State

sential reasonableness of their programme.

The President has not yet named any Secretary of War, and
everybody is in the dark as to his plans.

The names of Whitlock,

Goethals, Frank Polk, Andrew Peters, Lane and Houston have all been
mentioned, but none of them except Goethals or Whitlock would be received with much enthusiasm.

Henry Ford has become disqualified by

reason of the large advertising campaign he has begun by means of
newspaper broadsides against preparedness.
In local affairs there is not much going on except the
Thompson Investigating Committee, which as you probably know, just

missed putting the subpoena on your friend Jack Morgan as he started
for the Rotterdam, and which is developing the fact that Mr. Shonts
has had his fingers in the till of the Interborough most of the time.

Mr. Louis Brandeis is being tried before a Senate Committee
as to whether he is fit or unfit to be a judge of the Supreme Court.

Counsel have been appointed, Mr. Austin Fox representing the prosecution and Geo. W. Anderson, now U. S. Attorney at Boston, representing
the defendant, and the number of counts in the indictment against him
increases daily.

I'expect that after

a

somewhat bitter wrangle the

result will be a very new, beautiful, and daintily applied coat of
whitewash and the consequent acceptance of the seat by Mr. Brandeis
to the joy of Messrs. Gompers et al and the groans of the "interests."
Over in Massachusetts, Gus Gardner, Grafton Cushing, Chas.

Bird and Robt. Washburn have announced they propose to run as delegates at large in favor of Roosevelt.

The Old Guard, consisting of

Crane, Lodge, Weeks and McCall announce their candidacies for delegates at large, unpledged.

Some think that the first four are not

really very much for Roosevelt, but are trying to sidetrack incipi


4AL RESERVE BANK OF NEW YORK

ent booms

in

4

Hon. Bend.

favor of Weeks or McCall.

Strong, Jr.

2/28/16.

This would not surprise me

very much, and if true would be a good thing.
In New York, Barnes, Wadsworth, Root and Whitman are still
backing and filling, as to what they would like to do.

From the a-

mount of action coming from him you would imagine that Barnes considers himself still alive.

This is all I can think of at the present time, except that

we are picking up a few acceptances and quite a number of New York
City warrants.

The committee to arrange for the allotment of investments

met here last Wednesday, when I was unfortunately in Boston, but I understand they are going to send out for more data from the other banks

with a view to making the allotment on a basis of the relation between
expense and dividend requirements on the one side, and rediscounts and
the local investment field on the other.

I believe this will probably

strike everybody except McDougal as a fair basis.
I hope this passes the censor, but

I do not see why it should

not as there is nothing but American politics in it.
Yours as ever,

Honorable Benj. Strong, Jr.,
c/o Morgan, Grenfell & Co.,
22 Old Broad Street,
London, England.

JFC/CE




MEYORANDUM
ON RECEIPT OF GOLD FOR COINAGE
AT U. S. MITTS OR TEE NE7 YORK ASSAY OFFICE.

R. S. Section 3506 provides that the superintendent of each mint shall
receive all bullion brought to the mint for assay or coinage *

*

* and from the

report of the assayer on the weight of the bullion he shall compute the value of
each deposit, and also the amount of the charges or deductions, if any, of all
which he shall give a detailed memorandum to the depositor;

and he shall also

give at the same tine, under his hand, a certificate of the net amount of the deposit to be paid in coins or bars of the same species of bullion as that deposited *

*

*

*

R. S. Section 3511 provides that the gold coins of the United States
shall be a one dollar piece, which at the standard weight of 25.8 grains shall be
the unit of value;

a half eagle or

05.

a quarter eagle or two and a half dollar piece;
piece;

a

03 piece;

an eagle or =10. piece and a double eagle or 020.

piece, and the standard weight of the gold dollar shall be 25.8 grains;
quarter eagle 64 1/2 grains' * * * * of the half eagle 129. grains;

of the

of the eagle

258 grains, of the double eagle 516 grains.
The Act of Sentember 26, 1890, Chapter 945, Section 1, directed the
discontinuance of the coinage of the

03.

and *1. gold pieces.

R. S. Section 3514 provides that the standard for both gold and silver
coins of the United States shall be such that of one thousand parts by weight
900 shall be of pure metal and 100 of alloy.

*

*

coins shall be of copper, or of copper and silver;
any case exceed one-tenth of the whole alloy.




*

*

The alloy of the gold

but the silver shall not in

-2-

Sedtion 3518 provides that at the option of the owner, gold or silver
may be cast into bars of fine metal or of standard fineness, or unparted, as he
may prefer, *

*

*

*

.

The Act of May 26, 1882, as amended by the Act of March 3,

1891, and of Farch 3, 1901, provides that the superintendent of mints and of the
New York Assay Office may, with the approval of the Secretary of the Treasury,
but not otherwise, receive

U. S. gold coin from any holder in Tams of not less

than 5,000. and deliver in exchange therefor gold bars in value equalldng

the

coin provided that the Secretary of the Treasury may make the exchange with or
without a charge.
Section 3519 provides that any owner of gold bullion may deposit the

same at any mint, to be formed into coin ot bars for his benefit, but that any
deposit of less than !'100. or any bullion so base as to be unsuitable for the op-

erations of the mint, may be refused.
Section 3521 provides that when bullion is deposited, it shall be weighed

when practicable in the presence of the depositor, to whom a receipt shall be given
stating the description and weight of the bullion.
Section 5524 as amended provides that the charges for melting or refining bullion *

*

*

* and for the preparation of bars shall be fixed from time to

time by the director of the mint, with the concurrence of the Secretary of the
Treasury so as to equal but not exceed in their judgment the actual average cost
to each mint and assay office of the material, labor, wastage and use of machinery
employed in the cases aforementioned.

The Act of January 14, 1875, Chapter 15, Section 2, provides that thereafter no charge should be made for the service of converting standard gold bullion
into coin.

The Act of March 14, 1900, Chapter 41, Section 1, provides that the dollar, consisting of 25.8 grains of gold, nine-tenths fine, as established by Section



3511 of the revised statutes, shall be the standard unit of value.
Section 3544 provides that when the coins or bars which are the equivalent to any deposit of bullion are ready for delivery, they shall be paid to the
depositor, or his order, by the superintendent;

and the payments shall be made,

if demanded, in the order in which the bullion shall have been brought to the mint.
In cases, however, where there is delay in manipulating a refractory deposit, or
for any other unavoidable cause, the payment of subsequent deposits, the value of
which is known, shall not be delayed thereby.

In the denominations of coin deliv-

ered, the superintendent shall comply with the wishes of the depositor except when
impracticable or inconvenient to do so.
Section 3545

provides as follows: enabling the mints
For the purpose of

and the assay office in New York to make returns to depositors with as little delay as possible, it shall be the duty of the Secretary of the Treasury to keep in
such mints and assay office, when the state of the Treasury will admit thereof,
such-an amount of public money, or bullion procured for the purpose, as he shall
judge convenient and necessary, out of which those who bring bullion to the said
mints and assay-office may be paid the value thereof, in coin or bars, as soon as
practicable after the value has been ascertained.

On payment thereof being made,

the bullion so deposited shall become the property of the United States.

The Sec-

retary of the Treasury may, however, at any tins withdraw the fund, or any portion
thereof.

The Act of June 19, 1878, Chapter 329, Section 1, provided that in carrying out the provisions of Section 3545, the Secretary of the Treasury is authorized to use "as far as he may deem it proper and expedient for payment to depositors, all bullion at the several mints and assay offices, coin certificates representing coin in the Treasury and issued under the provisions of Section 254 of




-4-

the revised statutes" *

*

* all to be* done under regulations to be prescribed

by the Secretary.

The Act of March 3, 1879, Chapter 182, Section 1, provided for the
repeal of the pre-existing authority lodged in the Secretary of the Treasury
to issue coin certificates in exchange for bullion deposited for coinage at
any assay office other than the one at New York.
section 3546 provides that unnarted bullion may be exchanged for
fine bars on such terms and conditions as may be prescribed by the director
of the mint, with the approval of the Secretary of the Treasury.
The Act of June 19, 1878, Chapter 329, Section 1, provides that refining and parting of bullion shall be carried on at the mint of the United
Similar provision is found in

States and at the assay office at New York.

the Act of July 7, 1898, Chapter 571, Section 1.
Section 3548 as amended by the Act of March 4, 1911, provides that
the standard troy pound of the Bureau of Standards shall be the standard troy
pound of the mint of the United States, conformably to which the coinage thereof shall be regulated.

Section 3552 provides that the monies received from all charges and
deductions on and from gold and silver bullion *

*

*

* except as otherwise

provided in the Act shall be covered into the Treasury.
Section 3553 provides that the business of the U. S. assay office
at New York shall be in all respects similar to that of the mints, except that
bars only and not coin shall be manufactured therein, and no metals shall be
purchased for minor coinage.

All bullion intended by the depositor to be con-

verted into coins of the United States *
"ohiladelphia under




s7ch

*

directions as nhall

*

* shall be transferred to the mint
e

e

the secretary of the

-5-

Treasury at the expense of the contingent fund of the mint, and shall be there
coined and the proceeds returned to the Assay Office.
The Act of June 22, 1874, Chapter 419, provides that the Secretary
of the Treasury may from time to time transfer to the office of the Assistant
Treasurer at New York from the bullion fund of the assay office at New York,
refined gold bars bearing the U. S. stamp of fineness, weight and value, or
bars from any melt of foreign gold coin or bullion of standard equal to or

above that of the United States, and may apply the sane to the redemption of
coin certificates or in exchange for gold coins at not less than par, nor the
market value, subject to such regulations as he may prescribe.
Section 3555 provides that the duties of the officers of the assay
office at New York shall correspond to those of the mints, and all provisions
relating to mints and their officers shall extend so far as practicable, to the
assay office at New York.

The Act of August 27, 1894, Chapter 349, Section 25, provides that
the value of foreign coin as expressed in the money of account of the United
States, shall be that of the pure metal of such coin of standard value and
the values of the standard coins in circulation of the various nations of the

world, shall be estimated quarterly by the director of the mint and be proclaimed by the Secretary of the Treasury on the first days of January, April,
(Note:

etc.

these values are for the purpose of estimating duties on im-

ports.)

Section 3565 provides that in all payments by or to the Treasury,

whether made here or in foreign countries where it becomes necessary to compute the value of the sovereign or pound sterling, it shall be deemed equal
to

4.8665, and the same rule shall be applied in appraising merchandise im-

ported where the value is, by the invoice, in sovereigns or pounds sterling,
 and in


the construction of contracts payable in sovereigns or pounds sterling;

-6-

and this valuation shall be the par of exchane between Great Britain and the
United States; and all contracts made after the first day of January, 1874,
based on an assumed par of exchange with Great Britain of fifty-four pence to
the dollar, or ,:34.44 4/9 to the sovereign or pound sterling, shall be null and
void.

Section 3566 nrovides that all foreign gold and silver coins received
in payment for monies due to the United States shall before being issued in circulation be coined anew.

May 22, 1916.
JFC/LCE




GOLD IMPORTS.

The Assay Office will pay $18.945 for one ounce Gold 916 2/3 Fine.
The English Standard is 916 2/3 Fine.

Taking 78s. as the price at which the Bank of England will sell
Sovereigns in London, we arrive at the following:-

X
936d. fequivalent of 78s.)
1 Ounce English Standard,
916 2/3 Fine
Therefore X .

.7.

=

=
=

240d. (equivalent of £1 stg).
1 ounce English Standard 916 2/3 Fine.
$ 18.945
4.85769230.

$

1 Sterling would equal

$

Less charges as follows:Freight -London to U.Y. 3/8% .....01821635,
TI
.00607212%
Marine Ins.
u
.03036058
5/8%
War risk "
1/4 o/oo .00121442.
Abrasion
1/10 0/0o .00048577,
Sundries
Interest loss, say 12
1 1/3 0/co .00647692days, at 4%




TT

4.85769230

1/0

Cable Rate

.06282616
$

4.79486614

GOLD

COIN

IMPORTS.

The Assay Office will pay $18.604651 for one ounce Gold 900 fine.
The American Standard is 900 fine.

Taking 778.3d. as the price at which the Bank of England will sell American
Gold Coin in London, we arrive at the following:-

X = 240d. (equivalent of £1 stg.)
927d. (equivalent of 77s.3d.)
=
1 oz. American Standard 900 fine.
1 oz. American Standard-900 fine= $18.604651
Therefore X
= $ 4.81673812

$ 4.81673812

1 Sterling would equal
Less charges as follows:Freight - London to N.Y: 3/8% ...
"
1/8%
Marine Ins.
"
"
u
IT
It
5/84
Warrisk "
Abrasion
1/4 o/oo
Sundries
1/10 0/00
Interest loss, say
12 days' at 4%
1 1/3 o/oo




.01806277
.00602092
.03010461
.00120418
.00048167

.00642232

Cable Rate ...

.06229647

$ 4.75444165

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TABLE

AMERICAN

At 77s.
" 76s.5 1/2d.
" 76s.3 I/2d.
" 76s.-112d.

COIN

GOLD

.7. 4.83237

900

C 200,000
C 200,000
C 200,000
C 200,000

= 4.86661
= 4.87724
= 4.89327

FINE.

=
=

-

=

1 oz. pure gold = $ 20.67183462
1 oz. 900 fine = $ 18.604651
1 oz. 916 2/3" =
18.949181

EXPENSES

FROM

Expressage
Abrasion

TO

OTTAWA

3/40 =

Cooperage

Interest loss

3 days at 6%

=

NEW

.003670
.000250
.000200
.002446

.006566

YORK.

.
.
%

966,474
973,322
975,448
978,654

U. S MINT SERVICE.

Form 92.

Ed. 1,500 Nov. 17-19.

REVISED TABLE OF CHARGES
AT THE

MINTS AND ASSAY OFFICES OF THE UNITED STATES.
As fixed by the Director of the Mint and approved by the Secretary of the Treasury
November 14, 1914.

TO TAKE EFFECT DECEMBER 1, 1914.
MELTING CHARGE:

On deposits of bullion a charge of $1 shall be imposed for each 1,000 ounces
of bullion or fraction thereof as shown by weight after melting, except in the
case of uncurrent United States coin and mint-fine bars, for which no charge

\

is made.

On deposits carrying nonmetallic material or separate particles of nonprecious metals when the loss exceeds 25 per cent, a refining charge of $1 for
each deposit shall be imposed when the deposit weighs 150 ounces or less.
On such deposits weighing over 150 ounces the charge shall be in accordance
with the extra expense of the melting operations.
PARTING AND REFINING BULLION (rate per ounce gross):

On bullion containing 100 thousandths or less of gold and not more than 100

thousandths base, three-fourths of a cent per ounce for each additional 50
thousandths base or fraction thereof, in such bullion, one-half cent per ounce
shall be added
On bullion containing 100+ to 250 thousandths, inclusive, of gold and not

more than 100 thousandths base, 1 cent per ounce; for each additional 50
thousandths base, or fraction thereof, in such bullion, one-half cent per ounce
shall be added.
On bullion containing from 250+ to 500 thousandths, inclusive, of gold and not

more than 100 thousandths base, 2 cents per ounce; for each additional 50
thousandths base, or fraction thereof, in such bullion, one-half cent per ounce
shall be added.
On bullion containing from 950 to 9911 thousandths, inclusive, of gold and not
more than 30 thousandths base, 2 cents per ounce.
Bullion containing 992 thousandths of gold and upward shall be accepted
free of the parting and refining charge. No allowance shall be made the depositor for silver.
On all other bullion there shall be a charge of 4 cents per ounce, and deposits
containing 800 thousandths or more of base metal must be declined.
For bullion where the alloy is all good copper, with but one of the precious

metals presept, the charges shall be one-half cent per ounce. This does not
mean to include foreign coin of standard fineness or above, for which the only
charges imposed shall be for melting and for extra copper required for alloy.
A parting and refining charge shall be imposed on all foreign coin below standard fineness. When bullion contains less than one-fourth thousandth of gold
or 8 thousandths of silver, the gold or silver contents shall not be reported for
the benefit of the depositor.
REFINING SILVER (rate per ounce gross):
Upon silver bullion free from gold assaying 970 to 997+ thousandths, inclusive,




the charges to be imposed and collected shall be four-tenths of a cent per ounce;
and all such bullion between 870 and 970 thousandths, except where the base
is all good copper, in which case it shall be in the above class, shall be subject

to the parting and refining charge of three-fourths of a cent per ounce; and
all such bullion 870 thousandths fine or under shall be subject to a parting and
refining charge of 2 cents per ounce.
Upon silver bullion free from gold assaying 998 thousandths or over, when a

depositor demands in payment bars of a higher fineness than his deposit, a
refining charge of three-tenths of a cent per ounce shall be imposed and collected.
70037-14

2
TOUGHENING CHARGE:

Bullion containing one or more of the following substances, viz, iron, lead,

antimony, bismuth, tin, arsenic, zinc, or sulphur, in amounts sufficient to
make it impossible to obtain a satisfactory assay, shall, at the discretion of the

superintendent, be subject to an additional charge equal to the cost to the
Government for remelting and treatment by the deposit melter.
COPPER ALLOY:

I

Two cents per ounce for the necessary copper required for alloy to be determined by taking one-tenth of the fine weight of gold, except when the base
in the deposit is all good copper and the fineness above stp.ndard, the alloy

shall be determined by taking the amount of copper required to reduce the
bullion to standard fineness.
WITHDRAWAL OF DEPOSITS:

Deposits may be withdrawn subject to charges actually incurred up to the
time of withdrawal.
BAR CHARGES:

On bullion deposited for fine bars but not required to be parted or refined,
and for unparted bullion (when sold or when special sizes are required by
depositors).

On fine bars, in lots of $5,000 or more, exchanged for coin, and on fine bars
exchanged for bullion:
Bars of fine gold, $5,000 in value and over, 0.05 of 1 per cent.
Bars of fine gold (less than $5,000 to $500), assorted sizes, 0.05 of 1 per cent.
Bars of fine gold (less than $500), assorted sizes, 0.07 of 1 per cent.
Bars of fine gold (between $300 and $200), in lots of 20 bars, value approximately $5,000, 0.09 of 1 per cent.
Bars of standard silver, per ounce gross
$0. 00.
Bars of fine silver, not less than 500 ounces, per ounce gross
001.16
Bars of fine silver, less than 500 ounces and more than 125 ounces,
per ounce gross
00-i
Bars of fine silver of 125 ounces and less, per ounce gross
00f
. 00f
Bars of unpaxted bullion, per ounce gross
S. MINOR ASSAY OFFICES:

When bullion is deposited for payment in coin it shall be subject to such
charge as would be imposed at the mints, and an additional charge for assaying
and stamping, viz: On deposits of less than $800 in value, $1; on deposits of
$800 and over, one-eighth of I per cent on the gross value of the bullion. In
case the bullion deposited contains any foreign substances that make it impossible to obtain a satisfactory assay it shall be subject to an additional charge

equal to the cost to the Government for fuel, labor, and materials used for
remelting and treatment. Very impure deposits which fail to give concordant
assays on dip samples from the third melting shall be returned to the depositor
and the additional expenses incurred in treatment collected. When bullion

is returned to the depositor in an unparted bar the charges for melting and
assaying and stamping shall be collected.
ASSAYS OF BULLION AND PLATED WARE:

Samples of gold and silver bullion will be assayed at the mints and assay
offices at a charge of $2 per sample. In case of plate, or what is known as
rolled or filled plate, the charge shall be $4 for each assay; or the assay may be
refused, at the option of the assayer.
ASSAYS OF ORES:

Assays of ores for gold and silver will be made at the minor assay offices and

the mints at Carson, Nev., and New Orleans, La., at a charge of $3 for each
assay.

GEO. E. ROBERTS,
Director of the Mint.

Approved:
W. G. McADoo,
Secretary of the Treasury.




WASHINGTON: GOVERNMENT PRINTING OFFICE: 1914

U. S. MINT_ SERVICE.

Form 8847.

TABLE OF CHARGES
AT THE

MINTS AND ASSAY OFFICES OF THE UNITED STATES




As fixed by the Director of the Mint and approved by the Secretary of the Treasury
March 31, 1916.

TO TAKE EFFECT APRIL 15, 1916.
MELTING CHARGE:

On deposits of bullion a charge of $1 shall be imposed for each 1,000 ounces
of bullion or fraction thereof as shown by weight after melting, except in the
case of uncurrent United States coin and .mint-fine bars, for which no melting

charge is made.
On deposits carrying nonmetallic material or separate particles of nonprecious
metals, when the melting loss exceeds 25 per cent, an additional charge of $1
for each deposit shall be imposed when the deposit weighs 150 ounces or less.
On such deposits weighing over 150 ounces the charge shall be in accordance
with the extra expense of the melting operations.
TOUGHENING CHARGE:

Deposits which fail to give concordant assays shall, at the discretion of the

officer in charge, be subject to an additional charge equal to the cost to the Gov-

ernment for fuel, labor, and materials used in remelting and treatment by the
deposit melter. Impure deposits which fail to give concordant assays on dip
samples from the second melting shall be returned to the depositor and the
additional expenses incurred in treatment collected.
WITHDRAWAL OF DEPOSITS:

Deposits may be withdrawn from the mints at Philadelphia, San Frandsco,
and Denver, and from the assay office at New York, subject to charges actually
incurred up to the time of withdrawal. Deposits withdrawn from the minor

assay offices and the mints at New Orleans, La., and Carson, Nev., shall be
subject to the following charges, viz: Deposits valued at less than $800, where
extra toughening charges have not been incurred, $2 ior assaying and stamping each bar; on deposits of $800 or over, such charges as have actually been
incurred up to the time of withdrawal and $2 additional for assaying and
tamping each bar.

PARTING AND REFINING BULLION (rate per ounce gross):

CLASS A.Bullion containing gold and silver.
Gold contents.
Thousandths.
3-250
2501-500
5001-949;
950-969;
950-991;
992-1000

Base contents.

Charge.

Thousandths.

Charge.

Add.

$0.01 }For each 100 or fraction thereof, in excess of 100
.02
.04
.04 If more than 30

.02

$0. 01

If not more than 30
No allowance for silver

CLASS B.Silver bullion free from gold.
870 thousandths or less
8701-9691 thousandths
970-9971 thousandths
998 thousandths or over, if payment is demanded in bars of a higher fineness

50.02

.01

.00}
.003

CLASS C.

Bullion with but one precious metal present and base being copper suitable for alloy

purposes (including foreign silver coin deposited for fine bars), if paid by cash or check.
35204-16

$0. 001




2
CLASS D.
Foreign and uncurrent or mutilated domestic gold coin, or bullion of Class C (except foreign

silver coin), if payment is demanded in line bars

$0. 01

Foreign and uncurrent or mutilated domestic gold coin of standard fineness
or above is not subject to a refining charge if paid for by cash or check.
When bullion contains less than one-fourth thousandth of gold or 8 thousandth of silver, the gold or silver contents shall not be reported for the benefit
of the depositor.
All deposits containing 800 thousandths or more of base metal must be declined.
ALLOY CHARGE:

Two and one-half cents per ounce for the copper required for alloy, to be
determined by taking one-tenth of the fine weight of gold, except when the
base in the deposit is copper suitable for alloy purposes and the fineness above

standard, in which case the alloy shall be determined by taking the amount
of copper required to reduce the bullion to standard fineness.
BAR CHARGES:

Gold bars, of standard fineness or above, when sold for coin in lots of
not less than $5,000, and gold bars issued for bullion, when special sizes
or amounts are requested by depositors, shall be subject to the following
charges:
GOLD BARS.

Per $100 value.

Bars of $5,000 in value and over
Bars of less than $5,000 to $500, assorted sizes
Bars of less than $500, assorted sizes
Bars between $300 and $200, in lots of 20 bars
Bars of a fineness of 999.9, not over $5,000
Bars of a fineness of 999.9, over $5,000

$0. 05
. 05

.07
. 09

.09
.08

SILVER BARS.

Per ounce gross.

Bars of standard silver
Bars of fine silver, not less than 500 ounces
Bars of fine silver, between 125 ounces and 500 ounces
Bars of fine silver, 125 ounces or less
Bars of unparted bullion

$0. 00i
. 001
. 00-k

. 00+
. 00+

ASSAYS OF BULLION AND PLATED WARE:

Charge.

Gold samples
Silver samples

$2. 00
2. 00

4.00

Plated ware, rolled or filled (may be refused)
8, ASSAYS OF ORES:

Assays of ores will be made at the minor assay offices and the mints at

Philadelphia, New Orleans, La., and Carson, Nev., charges based on
metals determined in sample:

Charge.

Gold and silver
Copper, tin, zinc, iron, lead, and tungsten (each)

$1. 00
1. 00

9. ASSAYING AND STAMPING CHARGES:

These charges apply at the mints at New Orleans, La., and Carson,
Nev., and the minor assay offices, and are in addition to such charges
Charge.
as would be imposed at the mints and assay office at New York:
Deposits of less than $800 in value
Deposits of $800 or over, on gross value

$1.00
.1 of 1 %

R. W. WOOLLEY,
Director of the Mint.

Approved:
BYRON R. NEWTON,

Acting Secretary of the Treasury.

WASHINGTON GOVERNMENT PRINTING OFFICE: 1916

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July 6 [1916]

COPY

Dosoris Lane
Glen Cove
Long Island

My Dear Gov.

Words fail to express my astonished pleasure when your munificent Cigar
Box walked itself into my presence. It was just like you, in the midst of the
thousand + one things you had to attend to, to go to the trouble of selecting someI am considthing that you knew would give so much enjoyment. Many many thanks.
ering myself merely as a custodial trustee for the benefit of all the smokers at
the Bank.
As you may well imagine, the chief excitement since you left has been
Ex/" which is now practically a fait accompli. You would have
the advent of "
laughed to see Bro.Starek's attitude when considering the application in committee.
Very critical + unenthusiastic. When I said, Nell, this marks an epoch in our
history," he doubted whether it really did + wasn't sure that the new arrival was
However he was willing to vote in favor of
such a valuable acquisition after all
the application.
We had quite a meeting of the various Governors about the 3% bonds + went to
Washington as you know to get the gpproval of the plan for a selling committee.
will send you the minutes of the meeting to while away your leisure hours.
They finally appointed 3, Rhoads(ch.) Treman, + McDougal, with Kenzel as advisor, to
manage the marketing. All the banks but two (not yet heard from) have approved the
plan so I guess it will go into operation all right.

Fisher came down yesterday to see about borrowing $15,000,000 for the City
in August, but as he wanted it at 3% Kenzel + Treman told him that was a little too
low + he went away - only to return on thinking.
Laura + I went on to Manchester for the 4th but when there we got word
that the youngest baby was quite sick so we rushed back again. He is better again +
think out of the woods all right, though we had quite a scare.
P.J. starts west tonight, stopping over in Buffalo + Niagara Falls +
will probably reach Denver about the time this does. He needs a good rest + we have
finally persuaded him to take 6 weeks anyway + I hope more.
Your will is safely deposited with the Trust Co. + your old one destroyed.
I'm ashamed to say I haven't,got around to fixing up all your insurance yet, owing
oddly enough, to quite a little work I found to do for the bank - in spite of the
complaints anent my cultured ease which I was getting off the last time we talked.
Which all goes to show that you never can tell.
Charley Sabin has taken on Harry Emery to do some work for his Co. in
Russia, which pleases me intensely. This news is not public by the way.
Our new acting govr. has taken hold
Things are moving along here smoothly.
in good shape + seems to be acquiring a good grip on the situation very rapidly. Our
friends of the Exchange National of Olean have registered a kick against the Collection
plan backed up by opinion of counsel, which I am shipping to Washington with the
suggestion that they let us have an opinion from the Atty-Gen for use in such cases
so that all the F.R.Bank's counsel may make uniform replies.
I sincerely hope you were not too tired by the trip + that the beneficent
effects of the wide + woolly may..raready be showing themselves.
of feelings I can't tell you what
Not being much good at the e- ression
makes. To ell the truth I never fully realized how firm
a gap in my life your absence
(over)
http://fraser.stlouisfed.org/ grip or how large a part of my affections you have succeeded in ensnaring.
a
Federal Reserve Bank of St. Louis




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snit to get so dependant upon another soul, don't you think?
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FEDERAL RESERVE BANK
OF NEW YORK

August 2, 1916.

Ny dear Guy:

I seem to have about three letters from you which I have so far
neglected to answer, for all of which please accept my profuse apologies.
Referring now to your letter of July 25th which asks some questions
about the bookkeeping of the check collection plan, the situation is as follows:

In order that we might keep track of the uncollected items and know

at all times the amount of float we are carrying, it was necessary for us to
establish two memorandum accounts, which were called "Uncollected Itemdson
the resources side and "Uncollected Deposits" on the liability side, these
two items always agreeing as to amount.

In addition to these two accounts,

we established two accounts on the resources side, "Deferred Debits" and
Transit Account," the "Deferred Debits" being the total amount of outgoing
items which are charged to our member banks and other 2ederal reserve banks
on the outgoing time schedule.

The "Transit Account" consists of items

which we send direct to nonmember banks.

Deducting the balance in "Un-

collected Deposits" from the sum of "Deferred Debits" and "Transit Account"
will show the amount of float we are carrying.

This float is largely

caused by deferring our credits on a different time schedule from that of
the charges.

The way our member banks ledgers are arranged, containing

the ledger account and the analysis on the same sheet, by the use of the
above-mentioned accounts we are able to prove the gross balance, the net
balance and the unavailable items.




FEDERAL RESERVE BANK OF NEW YORK

2

Benjamin Strong, Jr., Esq.,

8/2/16.

All of the above explanation has been written by Mr. Hendricks and,

0

as they say on the letters of advice, is given without responsibility on my
part.

Referring to the government account, I conferred with Mr. Treman who
agrees that it would be well to inquire of either McAdoo or Yalburn with respect to the policy the Treasury Department would adopt in the matter of our
balances, and we shall do this within a day or two.
I am delighted that you continue to gain and also that the climate
is so beneficial.

We had a conference here yesterday with Messrs. Warburg, Aiken,
Rhoads and Fancher, at which check collections, the Clayton Act and government
bond sales were the principal topics of discussion.

It is proposed to hold

a conference of the governors either here or at Boston on August 22nd, if the
other governors agree, in order, chiefly, to iron out the difficulties of the
collection matters.

Warburg was on his way to Washington yesterday in order to be on
hand when the amendments to the Federal Reserve Act are brought
ference between the Senate and the House.

up in con-

As you may have seen by the papers,

the Senate passed most of them on Monday, with a modification in the branch
bank section which would limit national banks to establishing branches in the
same city or town only and only if the banks have a capital of a million
dollars or over and are situated in a city or town of one hundred thousand in-

habitants or over, with the number of branches limited to ten and only in
cities where the State laws permit the State banks to have branches.

We started taking items under the collection system from the New
York City banks yesterday, the Corn Exchange Bank supplying most of the increase - approximately 6,000 items -, which made a total of 27,000 for the-day.




FEDERAL RESERVE BANK OF NEW YORK

3

3enjamin Strong, Jr., Esq.,

8/2/16.

I went over to the tobacconist on Wall Street, who said he would send

cy

you 250 of the same "vintage" of cigars that you had before,accompanied by the
bill so you see that your commission was honestly carried out.

Mrs. McLaren seems worried about whether we have two sets of your
Dutch emergency currency in the box in the vault.

I think we have but have

not been able to look as yet, although I will as soon as opportunity offers.
We had one very hot day here, which was the day ir. Hughes made his
acceptance speech,which I managed to miss by being a little late in arriving.
Candidly, however, I don't think I missed very much as, as an acceptance, I
am afraid it will go at more of a discount than Kenzel allows.

How did it

strike you?

The latest news item is that the Deutschland is still with us.
Hoping you are the same, I am,
Yours very truly,

etary.

Benjamin Strong, Jr., Esq.,
The Lewiston,
Estes Park, Colo.

JFC/PE
P. S.

Since writing the above I have received the enclosed note and blanks

from Mr. Carraway with reference to your accident insurance.

After going

over the policies very carefully and discussing the matter with him, I think
the only chance of collecting anything would be with respect to your twisting
the sacroiliac joint, which, as I remember it, laid you out for about two
weeksanyway, irrespective of other ailments.
Mt. Carraway's remarks concerning the possibility of cancelation.

In this conn
I don't

know anything about this except what he tells me and so am not able to give you




FEDERAL RESERVE BANK OF NEW YORK

Benjamin Strong, Jr., Esq.,

8/3/16.

any advice that would be any better than your own guess nor quite so good.
I am enclosing copy of Mr. Nugent's reply to Mt. Jay, which will be
of interest.

JFC/PE
EnC8.




FEDERAL RESERVE BANK
OF NEW YORK

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JAMES FREEMAN CURTIS

TELEPHONE MAIN 4235

COUNSELLOR AT LAW




53 STATE STREET
ROOM 905

adiffee

BOSTON, MASSACHUSETTS

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aTT3?1.1I-1.)A.,

FEDERAL RESERVE BANK
OF NEW YORK

August 9, 1916.

CONFIDENTIAL.

My dear Governor:

I have read with great interest and admiration your memorandum with
reference to the B

of E and have almost no comments to make except that I

think it is conclusive and unanswerable.

However, in order not to let you

get the feeling that any piece of work of yours can escape wholly unscathed,
I make the following suggestions:
1.

On page 3 you include among the businesses to be transacted

under the agreement
Purchasing dollar bills of exchange,
"(c)
selling the same with the indorsement of the Federal
reserve bank and collecting same at maturity or for
(See paragraph (e) quoted
account of the B. of E.
above.)"

It seems to me there is some question about whether parasTaph (

does authorize Federal reserve banks to conduct this business in the United
States for account of its 'foreign correspondents as, to my mind, paragraph (e)

contemplates only activities to be conducted abroad by the correspondents or
agents of the reserve banks in the foreign countries.

Of course, this is a

pretty vital point and probably we had better assume the correctness of your
position without raising the question.

I think it would be covered by the

amendment to the Act which has passed the Senate, Which provides that there shall
be added after the last word of paragraph (e) the following:




"And with the consent of the Federal Reserve
Board to open and maintain banking accounts for such
foreign correspondents or agencies."

..AL RESERVE BANK OF NEW YORK

2.

2

Benjamin Strong, Jr., Esq.,

8/9/16.

On page 5 you state that

"Such commerce (in contraband, etc.) being
described by the Secretary of State in one case as
legitimate commerce and in another case as lawful commerce."
I would suggest changing this to read that this commerce has been described by both Secretary of State Bryan and Secretary of State Lansing in official
docugents as lawful commerce and legitimate commerce.

At the end of page 6 I would add the words "as a franchise tax."
On page 8 I mould suggest making the last sentence of the first

paragraph read
"They also pay substantial taxes, called "duties,"
to the Federal Government."

Agwo--1-

On page 9 I would suggest the third sentence be made to read
"In the years 1893 to 1895 and 1907 and the
two years of the present war, etc."

On page 11, the first line, I would suggest that your phrase,
"Nor need (b) and (c) be discussed." should be elaborated as this is a somewhat
curt dismissal of suggestions which might appeal to some members of the Federal
Reserve Board.

How would it do to insert something like the following:

"After considering all three possibilities, (a)
alone seems feasible.
Action under either (b) or(c)
would result in our obtaining service considerably less
efficient than that which we could obtain under (a), and
would have the added disadvantage of our being uhable to
obtain the guarantee of the B. of E. on all our bills.
It hardly seems necessary to discuss (b) or (c)."

Doubtless you could rephrase this in much better language and with
additional reasons.

In the middle of page 12 I would suggest inserting an answer to
the argument which I feel sure -Ir. Warburg will present:

That your plan is the

product of an idealistic vision in that the B. of E. and ourselves are in



...............,

RESERVE BANK OF NEW YORK

3

Benjamin Strang, Jr., Esq.,

8.p/16.

4(1,2

)64)

business for what we can get out of it and will not in reality cooperate in these

matters but will always be on the opposite sides of the fence, and that in some
way or other the other fellows will manage to "put one over on us."

He also

feels that,in case of the outbreak of war or threatened war in which England or
ourselves might be involved, we might be at the mercy of hostile bankers.

I

feel sure that he will raise this point of view, which, to my mind, when analyzed to its logical conclusion, really means"Don't ever do any international
business"because, if actual hostilities occurred, we would be no

more safe

having anybody else as our correspondent in England than we would be under your
proposed plan.

However, I think it would be well worth while to answer this

argument in advance.

Will you let us know how these suggestions appeal to you, if at all.
Upon receipt of further word from you, 1,1r. 2reman and I will put the matter in

the way of getting further action.
Yours sincerely,

Benjamin Strang, Jr., Esq.,
The Lewiston,
Estes Park, Colo.

JFC/PE




8/9/16.

2

2.

On page 5 you state that

"3uch commerce (in contraband, etc.) being
described by the Secretary of State in one case as
legitimate commerce and in another case as lawful commerce."
I would suggest changing this to read that this commerce has been described by both Secretary of State Bryan and Secretary of State Lansing in official
documents- as lawful commerce and legitimate commerce.

(See

and telegram
from the Secretary of State to Ambassador Penfield under date of August 2, 1915.







FEDERAL RESERVE BANK
OF NEW YORK

August 10, 1916.

My dear Mrs. MicLaren:

So soon you get a note from the Equitable Building.

Would you be so kind as to do something for me.

On

the second page of a letter I wrote yesterday for Mr. Curtis
to Mr. Strong a blank space was left to be filled in later.
In the rush of things I forgot this an& only rembered it
this morning.

The second page down to and including the

addition is as per the enclosed.

I hope it isn't troubling

you too much to ask you to make the addition for me.
I do hope you had a nice trip.

You certainly

picked out a very disagreeable day to begin your journey.

I also wish that your stay in Colorado will turn out to be
very, very pleasant, and that you will come back feeling
very much better.
Sincerely yours,

FEDERAL RESERVE BANK
OF NEW YORK

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EIGHTH CONFERENCE OF GOVERNORS
of
FEDERAL RESERVE BANES

BOSTON. AUGUST 22. 1916

PROGRAMME
1.

Appointment of Chairman

2.

Minutes of Seventh Conference of

3.

Unfinished business:

Governors.

Distribution of expenses of moving gold for gold
fund.

Eains

Retroactive liability for expenses of operating
gold fund_

()

Conference of Auditory
Audit of gold fund.
Disposition of matters reported to Federal Reserve Board:

Mt. Curtis
ft

Checks received from collectors of
customs and internal revenue
carrying exchange Charges,
Copies of instructions to collectors of customs and internal
revenue,

Communications between Federal Reserve Board, Federal reserve
banks and Federal reserve
agents.
Member banks' earnings statements.
4.

Committee reports:

(0)

(a)
(e)

5,

Committee on reserve and central reserve cities.
Committee on questions submitted by Federal Reserve Board touching foreign operatione.
Committee on method of calculating dividends.
Committee on allotment of investments,

Committee on disposition of government bonds,

Reserve banks as fiseal agents of the

Government.

Mr. Seay
Mr. Kains
Mr. Sway
*

Xt. Rhoads
(Mr. Delano

(Mr. Aiken
Seay
6.

Collections and clearances:




Direct routing of Cheeks.

Transfer Charges

(Mr, Rhoads

Should uniform rates and forma be as
tablished.
Consent of Federal reserve

(Mr, Zesty

(Mr, McCord

banks,
Routing ef returned items.

(Mk.. Treman

1g, Rhoads
(o)

Postmasters us °enactors,

(W. McDougal

Surety bonds.

(Mr, Rhoads
Seay

Service charges,

(P)

(gr.

Aiken
.(14r. Rhoads

Per item v., per thousand.

Cost of operating collection department.
Items
to be included.
Distribution of expenses
Postage on mixed mail.
Elimination of service Charge on collections
handled for member banks.
Alien indorsements.
Atlanta vs. St. Louis.
Waiver of restrictions relating to indorsements.
Statements for member banks showing available
balances.
Daily, weekly or monthly?
Statements ahowing balances between Federal reserve brn3cy
Daily 0 weekly or mon;:hly/
,

(J)

(Mr.

Bev

(W. Aiken
(Mr, McCord

gr.

Miller
Mr. MoGord
Mr. Rhoads
*

-2(10

Remittance basis for member banks.

(1)

Remittance basis for member bunko on items sent
them drawn on. State banks,

(3)

Reserve roquiremLntA,

(mr. Tremar.
(Mr.

taloa and report

Miller

Uniformity of OOMVM-

Panaltlee for enereaohment on reserves,
Mithed of dealing with member banks that deduct
enchange,

Immediate availability of drafts on Federal re- (Mt, Delano
serve banks,

.

(14e

Treman

Oar, Aiken

Miller
(Ur, $say
(Nit

(g)

immediate availability at Federal reserve banks
of °beck* drawn on member banks located

outside Federal reserve cities.

Immediate availability of bank drafts on member banks located outside Federal reserve

OkrL MnDougal

(Mr, MoDongal

OW, Miller

cities.

Checks payable in Nee York funds at current

rates.

Transfers between Federal relerve banks.
Establishment of brandhes of Geld Settlement
Fund in ncn-Subtreasury Federal reserve

cities.

(N)

Currency shipments
Double indorsement stamps.

(s) District numbers on cheeks.
NO pretest items.
Should two accounts be maintained between
Federal reserve banks:
(ea) Charge, to be collected by member banks from
their patrons, and charges to be imposed

Seay
(Mr McCord
(Mr

Mr',. Aiken

Mr, Miller
Mr

Soay
ft

Mr MoMougal

Mr McCord

for clearing qr collecting by Federal

reserve banks.
(bb) Comensatien to member banks for collecting

Mr. Rains

(cc) Servies charge for items forwarded direct by
member banks for Federal reserve banks.
(dd) Uniformity in billing service Charges between
Federal reserve banks.

Mt, Miller

items en nonmember banks.-

(se) Service Charge on government checks deposited
with Federal reserve banks,
4

S

9,,

70

FOregn arrangements.

B A, meeting in Kansas City

Press stateliest,
Next meeting.




Mr

Treman

Mt

Rhoads

Supplement to

HUBBELL'S LEGAL DIRECTORY
(FORTY-SIXTH YEAR)

1916
AUGUST
THE HUBBELL PUBLISHING COMPANY
EQUITABLE BUILDING
NEW YORK

To keep Hubbell's for 1916 up-to-date make the following
important corrections:

CHANGES IN ATTORNEYS' LIST
PAGE STATE
3

Ala.

TOWN

Anniston

Willett, Willett & Walker succeed Willett &
Willett.

4

"

9

Cal.

20

Huntsville

S. S. Pleasams, deceased. Insert Lanier & nide.

Alturas

Cornish & Sharp succeed N. A. Cornish.

Conn. Bridgeport
lc

20

Chamberlain & Hull removed to 115 Main St.
Samuel C. Shaw removed to Security Bldg.

42

Ill.

Decatur

McCullough & Wierman succeed Outten, Ewing,
McCullough & Wierman.

47

Ind.

Evansville

Joseph H. Iglehart removed to Mercantile Bank
Bldg.

51
51

52
55

62

South Bend

Slick & Slick removed to Farmers Trust Bldg.

Terre Haute

"

Davis, Bogart, Royse & Moore succee

Iowa, Burlington
"

Dubuque

Kans. Topeka

avis,

Bogart & Royse.
Blake, Wilson & Jackson succeed Blake & Wilson.

J. 0. Frantzen succeeds Fitzpatrick & Frantzen.

Ferry, Doran & Cosgrove succeed Ferry, Doran
& Dean.

65

Ky.

Louisville

Harrison & Harrison now in Suite 301-302, Norton Bldg.

73

Md.

Baltimore

Howard M. Emmons removed to Munsey Bldg.

76

Mass. Boston




Dunbar, Nutter & McClennen succeed Brandeis.
Dunbar & Nutter.

PAGE STATE

TOWN

8._ ),fich. Battle Creek
"

83

Bay City

Ira A. Beck removed to City Bank Bldg.
Stoddard & McMillan removed to Shearer Bros
Bldg.

"

8;
93
101

Kalamazoo

Minn. St. Paul

St. Louis

Mo.

Mason & Sharpe succeed Lynn B. Mason.

Lightner & Young removed to Endicott Bldg.
Barclay & Wallace succeed Barclay, Orthwein 8z
Wallace.

"

101

Boyle & Priest removed to Central Nat. Bank
Bldg.

Collins, Barker & Britton removed to Boatmen's
Bank Bldg.

101

Jeffries & Corum removed to Central Nat. Bank

"

102

Bldg.
117

N. Y. Binghamton

119

"

" Cortland

Welsh 8z Couper succeed W. J. & F. W. Welsh.
New address, Suite 303 Phelps Bldg.

Benjamin T. Wright, deceased.
& Buck.

119

" Elmira

"

Use Champlin

Diven & Turner, dissolved.
Alexander S. Diven practising alone. Offices, 212

E. Water St.

S. G. H. Turner and Lewis Henry have entered
into a co-partnership under the firm name of
Turner & Henry. Offices, Realty Bldg.

132

/

CI

New York City

The firm of Aldao Pavey & Campos has been reorganized under the name of Aldao, Campos &
Gil, and will continue to carry on the business

at 55 Wall St.

This firm's South American connections continue
as formerly. See page 222.
160

Okla. Hobart

161

"

172

Pa.

Tolbert & Tol6ert succeed Morse 8z Standeven.

Tulsa

Cochran & Kauffman succeed Cochran & O'Brien.

Scranton

H. R. Van Deusen moved to 730-732 Scranton
Life Bldg.

It is with sincere regret we announce the death
of Major Everett Warren of the firm of War-

172

ren, Knapp, O'Malley & Hill.

172

it

Watson, Diehl & Watson succeed firm of Watson
& Diehl, with offices at 502-506 Scranton Life
Bldg.

178

S. C. Newberry

Geo. B. Cromer succeeds Johnstone & Cromer.

230

Ger.

Alfred Silberfeld, deceased.
Steinfeld, Cartstr. 3.

Breslau




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3(9

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UNION

TER

THEO. N. VAIL, PRESIDENT

CETVED AT
E.T3LUE

SV BOSTON MASS AUG 22ND 312PM 1916
'IN STRONG

ESTESPARK COLO
TELEGRAM RECEIVED IN CONFERENCE
OW MUCH WE MISS

YOUR GENERAL LEADERSHIP AND SEND

TiNGS AND ARDENT 7lISH FOR

RETURN TO OUR MIDST

A SPEEDY AND COMPLETE RECOVERY

AIKEN TREMAN RHOADS SEAY MCCORD

R MCDOUGAL WOLD MILLER HOXTON
THE BUNCH THEY
E TO SEND:HIM

ASSEMBLED WE WANT YOU TO

KAINS ON READING THE ABOVE

SAID ALL VERY WELL 'BUT

OUR LOVE
CURT IS'

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FEDERAL RESERVE BANK
OF NEW YORK

%,August 28, 1916.

My dear Governor:

any thanks for your letter of August 24th with its enclosure of a
Zilverbon for one gulden, which will be placed with the others.
Also, please accept our thanks for your kindness in advising us
We decided to

about the possibility of obtaining a place for the young man.
send him out West on the chance.

Our doctor thought that would be better than

any place in the East, and he was very anxious to go West also.

I have given

him letters to Dr. Sewall (whom I do not know), Peter Holme, a lawyer classmate
of mine in Denver, and yourself, and hope that he will be able to find something to do.

He is very willing and of excellent character.

Please do not

feel under any obligation yourself to him financially or otherwise as I have
arranged about that.

With reference to our foreign arrangements, I went to Hartford to
see the Secretary last Wednesday, he being in the midst of a tour to hold hearings in connection with the establishment of Federal

*o.00.o0.4.@r

farm loan banks.

I only had a very brief interview with him but it was sufficient to get his
point of view and also some valuable suggestions.

I think he is wholly

favorable to the plan as outlined in your memorandum and also to its being
put in operation as early as practicable, although he did not definitely commit himself on either of these points.

He threw out a suggestion (of course,

et(a 35-4-Y
wholly without meaning to have it taken as advice) that it might be well to
A

omit from the memorandum all references to the yuestion of neutrality, and he




..,SERVE BANK OF NEW YORK

Benjamin Strong, Jr., Esq.,

8/28/16.

also thought that it would be advisable to make our application as brief as
possible.

...lessrs. Aiken, Wold, Treman and myself thereafter took the matter

up with Harding and Delano, who had each been given a copy of your memorandum
and who knew of my trip to see the Secretary, and it was decided by all hands
to be advisable to have any references to matters of neutrality omitted from
the memorandum.

Both Harding an0 Delano are definitely favorable to the

scheme and, I think, seem in
operation.

doubtA

as

the time when it should be put in

There was some indication that it should not be before the first

Tuesday following the first Monday in November, but I doubt if this magical
date will have much influence in the matter.
After a conference of about an hour or so, Mr. Delano thought it
would be advisable to talk with Dir. Rains on the subject so he was also called
in, he not having ever seen your secret memorandum.

When he read it over he

was very enthusiastic over the possibilities of the plan and heartily indorsed
it, which, I think, relieved Delano's mind somewhat as the latter,

hile en-

tirely believing in the plan, has felt his own lack of knowledge on the
technique of foreign exchange and his inability to reply to what might be advanced against the plan by his colleagues on the board.

He thought it might

be advisable to get in some outside experts to advise with them, but possibly
he may consider that Kainst's opinion will take the place of such outside advice.

The board is having a meeting to-morrow morning and we are sending
to them to-day in consequence a formal application, of which I enclose herewith

a copy, together with a sustaining memorandum which is the same as you original
CLO
/1.0-24,,et17
-ko-t,
Incidentally,
which I4,1-4enclose a copy,,
one reduced as above set forth, of
the committee of which Rains is chairman appointed to consider the questions
touching foreign operations submitted by the Federal Reserve Board at the
conference of governors held last January made a report to the effect that it
would be advisable for the Federal reserve banks, acting together, to open re-




RVE BANK OF NEW YORK

3

Benjamin Strong, Jr., Esq.,

8/28/16,

lations with the national banks of the countries with which we have more important trade relations, such as the Bank of France, the Bank of England, the
Bank of the Netherlands, the Reichsbank, the National Bank of the Argentine,
etc.

This report fits in very well with your recommendations and memorandum

and, I think, will be very useful in getting action from the board.

Delano tells me that Warburg became much impressed with Kains during
their trip to South America, which will be a good thing in view of 'Coins's
enthusiastic reception of the plan.

Delano also suggested that KOins might

be a good man to get to manage the foreign exchange work of the banks when we
start out.

I told him that that had also occurred to us here and that we had

some idea of getting Kains to come on as deputy governor in charge of all
foreign exchange transactions if that could be worked appropriately.

Delano

was much pleased with that idea.
Since dictating the above I have talked with Mr. Harding by telephone
and have arranged to go to Washington to-night to present the application to
the board in person, with the accompanying memorandum, to-morrow morning.
I see I forgot to mention that the Vains report on foreign arrange-

ments was approved by the conference and referred to the sub-committee composed
of Messrs. Wold, Aiken and yourself (for whom we have substituted Mr. Treman)
to be used in such way as this committee may deem best.

I am arranging to

give a copy of this report to the board to-morrow so that they may have it before them when considering our application.
In case you have been distressed by observing in the Chronicle of
August 26th that the conference committee on the amendments to the Federal Reserve Act have omitted to include the amendment about days of grace in section
14, I may say that Mt. Harding told me over the telephone this morning that
that amendment had been included at the last moment through the efforts of
the board and :,1r. Glass and, apparently, after the text of the conference re-

port had been handed to the press.



In case you have not seen the Chronicle

_.,ERVE BANK OF NEW YORK ....._

AP

__

Benjamin Strong, Jr., Esq.,

8/28/16.

and have not observed what the fate of the amendments was, I think it may be
briefly summarized as follows:

That everything recommended by the board which

passed the Senate was agreed to,except the issuing of Federal reserve notes
against gold, which, I am afraid, has been swept into the discard for this
session, and except the authorization to national banks to establish branches
in this country,

which also

has been knocked out.

The committee has put in a

provision permitting the board, upon an affirmative vote of not less than five

members, to permit member banks to carry in the Federal reserve banks any
In giv-

portion of their reserves now required to be held in their own vaults.

ing out the report of the conference committee the Senate conferees stated:
"The amendments of the Senate to the bill have
been accepted by the House conferees with some slight verbal
modifications, except that the House declined to agree to,
and the Senate receded from, its amendment of section 16 of
the Federal Reserve Act which would have explicitly authorized and encouraged Federal reserve banks to issue Federal
reserve notes based upon gold or gold certificates.
"The House conferees declined to agree to the Senate
a!nendment proposing to permit national banks in cities of
more than 100,000 inhabitants and possessing a capital and
surplus of ,1,000,000. or more to establish branches, and the
Senate conferees have agreed to recommend that the Senate recede from this amendment.
"The House conferees insisted upon an amendment to
section 11, which was accepted by the Senate conferees, permitting the Federal Reserve Board, upon an affirmative vote
of not less than five, to permit member banks to carry in the
Federal reserve banks any portion of their reserves now required to be held in their own vaults."

Yours sincerely,

Benjamin Strong,
The LewiSton,
Estes Park, Colo.

Esq.,

sija &4t4A1,
E(2)

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CLASS OF SERVICE SYMBOL

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Letter

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Night Message

Nite

Night Letter

NL

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words)th is is a day message. Otherwise its character is indicated by tho

UNION

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TEL

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CLASS OF SERVICE SYMBOL
Day Message

Day Letter
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WESTERN UNION

NOW

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Night Letter

appears after the check number of
words)this is a day message. Otherwise its character is indicated bythe

NEWCOMB CARLTON. PRESIDENT

symbol appearing after the check.

)t

Blue

symbol appearing after the check.

RECEIVED AT

9D R 33N.L.

US WASHINGTON DC AUG 29TH 1916,
BENJAMIN STRONG

THE LEWISTON ESTESPARK CO 0
BOARD HAS UNANIMOUSLY APPROVED FO

IGN

ARRANGEMENTS SUBJECT TO APPROVAL

OF OTHER DEPARTMENT RELATIVE TO
,THAT NO ACTUAL

TRANSACTIONS

FURTHER APPROVAL OF BOARD

INTERNATIONAL COMPLI

HALL BE XXX UNDERTAKEN WITHOUT

NGRATULATIONS

ON FIRST STEP

J F CURTIS

840AM AUG 30

FEDERAL RESERVE BANK
OF NEW YORK
August 31, 1916.

My dear Gov:

In order to keep you up to date on our foreign matters, I give you
a brief sketch of what has happened since I-last wrote you.
I went to Tashington Monday night to see the Board, as I already
have written you in my letter of August 28th.

7r. Tarburg and I went down

on the sane train and I showed him a copy of the memorandum I was taking to
the Board and also told him of the steps already taken.
ing the memorandum, he looked

1113

Thile he was read-

and said, "You know I wrote this section

originally for 9enator Aldrich and it was taken bodily from the Aldrich Bill
and put into the Federal Reserve Act, and now I suppose the Board will tell
me what it means."

As I was under the impression also that such an event

was likely to occur, I made no reply.

On Tuesday morning I went to see Farding and presented him with
the various documents; also a copy of the Hains' report,

which I

ing herewith, and we had a little chat on the subjeCt.

He showed me a

am enclos-

letter he had .1ust received from McAdoo, stating that he thought the matter

was of such importance that before official action was taken, it should be
taken up informally with the State Department, which I think is wise on his
part, although a slight reversal from what he told me at Hartford.

During

our talk the Comptroller came in and L:r. Harding showed him the Secretary's

letter, so as to make sure that they should not be getting at.the subject
from too many different angles.
They went into a meeting at 11 o'clock, Harding having asked me to
prepare a little memorandum on the neutrality aspect of the matter for him to



77,7A BANK OF NEW YORK 2

Benjamin Strong, Esq.

8/31/16.

use if the vote came out as he expected it would--that it should be taken
up with the State Department.

I spent from eleven until

memorandum for him on this subject, which was in effect a rather poor imitation of the original pages in your memorandum which had been excised.
At one o'clock they adjourned and Harding told me that I need not
wait around unless I wanted to.

I went up to the Capitol and got a ticket

to hear the President address Congress on the railroad strike and listened
to a very poor speech, which seemed to me very illogical and unsound.

Am

glad to say he did not get nuch applause, although he got a little bit scattering and quite a little at the end; but I could find nobody in Washington,
even among my radical friends, who did not believe that the President was
in the wrong and the railway presidents in the right.
In the afternoon I played golf with Basil ::iles, who starts for

Russia to look after relief work for the ambassador (apparently to look out
for about a million and a half German and Austrian prisoners, military and

civil), and also Aiot\ Wadsworth, who has just taken up his new duties as
acting chairman of the executive committee of the American Red Cross, a job
which I believe he will do extremely well.
In the evening I had a little farewell party for Basil at !"1718"

where we gathered a few of the old crowd.
I telephoned to Governor Harding in the late afternoon, who told

me that the Board had unanimously approved of our application with two provisos:
1st.

That the State Department find nothing
obnoxious in the plan, and

2nd.

That no actual transactions be undertaken
without the further specific approval of the
Board.

He and Hamlin were appointed a cbmittee to take it up with the 5tate Depart-




dANK OF NEW YORK

Benjamin Strong, Esq.

8/31/16.

vo- '

Tient informally, and they had an anpointnent to do so some time to-day, Thurs-

day, but I have not yet heard the result.

Later in the evening I ran into Hamlin at the club and I asked him
what the idea was in putting in the second restriction.

He said the theory

of the noard was that it would be well to have the machinery all set up for
doing the business, but that they were somewhat doubtful of the advisability
of actually beginning transactions during the pendency of the war.

I urged

him very strongly to permit us to go ahead as soon as we are ready, on the
ground that I knew it was your view that the way to prepare for the shock to

commerce and the exchanges, which would necessarily follow the declaration
of peace, was to have a lot of credits and bills already established and
owned in London, so that the slack could be taken up by our selling the same.
I also said that to wait until the war was over before getting into this
position would be practically locking the stable door after the traditional
horse.

He said that anyway their approval to-day will make the first step,

and the Board was rather anxious to go by easy stages.
The psychology of this, I think, is easy enough to understand,

especially in view of the fact that they got a unanimous vote, and it seems
to me that we wil7 be in a very strong position to begin at any time we want
if, as I expect, the State Department has no objection to the plan.

You will

observe that our position will then be that the Federal Reserve Board will
stand committed to the Proposition that the principle of appointing the Bank
of

ngland our correspondent is a good one and has met with their approval,

and the State Department will be in the position of not disapproving of our
actually entering into transactions.

Consequently I think it would be very

difficult for the Board to put themselves in the -)osition of "hanging their

clothes on the hickory limb but not going near the water."




I expect we will hear some more news on this subject to-morrow and

.NK OF NEW YORK

Benjamin Strong, Esq.

8/31/16.

I will write you again if this lengthy letter does not prove over-powering
to you.

Yours sincerely,

Benjamin Strong, Esq.,
"The Lewiston,"
Estes Park, Colo.

JFC/CEP
Enc.

September 1, 1916.

P. Se ___ I have just received your telegram of August 31st withreference to
our foreign arrangements.

Your suggestions contained therein had already

4-

almealed to us and we haw* forwarded to Governor Harding a copy of the argument on the neutrality question which had been omitted from the original
memorandum.

This was prepared in aslightly different form and submitted

as a separate memorandum,

and,

gone to the State Department.

I understand from TTr. Jay, that it has already

He will tell you also at the end of this

letter what occurred in rashington yesterday.

I am enclosing herewith a

copy of the sunplemental memorandum in the form in which it went to Governor
Harding.

I enclose herewith a notice from the Bankers Trust Company, indicating that they have credited your account with !:299.70 as collection on the

draft of your friend in Scranton, so that that matter seems to be successfully
closed up.




K OF NEW YORK

Benjamin Strong, Esq.

8/31/16.

I will write you again if this lengthy letter does not prove over-powering
to you.

Yours sincerely,

Benjamin Strong, Esq.,
"The Lewiston,"
Estes Park, Colo.

JFC/CEP
Enc.

September 1, 1916.

P. S. --- I have just received your telegram of August 31st.with reference to
our foreign arrangements.

Your suggestions contained therein had already

annealed to us and we ha yk forwarded to Governor Harding a copy of the argu-

ment on the neutrality question which had been omitted from the original
memorandum.

This was prepared in a,slirhtly different form and submitted

as a separate memorandum, and, I understand from Hr. Jay, that it has already
gone to the State Department.

He will tell you also at the end of this

letter what occurred in r7ashington yesterday.

I am enclosing herewith a

copy of the supplemental memorandum in the form in which it went to Governor
Yarding.

I enclose herewith a notice from the Bankers Trust Company, indicating that they have credited your account with

299.70 as collection on the

draft of your friend in Scranton, so that that matter seems to be successfully
closed up.




Misc.

34

FEDERAL RESERVE BANK
OF NEW YORK

11:00

Postal' (TO BE MAILED)

/-0).

CONFIRMATION OF TELEGRAM
We have today telegraphed you as follows :

lenjamin Strong,
The Lewiston,
73stes Park, 0010.

<0/
Repiyiug telegram August thirty first your grugestions have already been
carried out Am writing fully.

J. F. Curtis.
(age. Fed. Res. Bk.
Equitable Bldg., N. Y.)
B-2




FEDERAL RESERVE BANK
OF NEW YORK
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FEDERAL RESERVE BANK
OF NEW YORK

Sex)

September 11, 19r6.

4 dear Governor:
Many thanks for your various letters of September 5th. and 6th, and
I beg to say that I am attending to your requests, as follows:

Your letter to Mr. Treman has been forwarded to him.
A copy of the Clayton Act, including the Kern Amendment, contained in an index-digest prepared by the digester par excellence at Washington, is being sent you;

also

A copy of the September number of the Federal Reserve Bulletin,
which contains the amendments to the Federal Reserve Act as they were signed
by the President, except that the words which I have bracketed on page 440
got omitted from the bill through the negligence of the conference committee.
We have received word from the board that, as a result of this slip, for the
present and until Congress blooms again we need not forward any applications
from member banks to accept up to 100% of their capital and surplus.

The Burton Bill; the National Bank Act and the stenographic
minutes of the conference of governors I sent you in a package on September
2nd and should have reached you about the same time as my letter of that date.
I an having a list of the directors of State banks and trust
companies made up, with an indication of which ones are private bankers,so
that you will be able to see where the shoe pinches.

It is too bad that

this matter comes up just now to throw an additional spoke in the wheel, but
I cannot help feeling that it is something that can be worked out satisfactorily in the end.




FEDERAL RESERVE BANK OF NEW YORK

6.

2

Benjamin Strong, Jr., Es.,

9/11/16.

As to the Bank of England matter, I have had no further word

but possibly :Ir. Jay is learning something in Washington to-day, where he expects
1115

to be over to-morrow wrestling with the Clayton Act applications.

There may

have been some news of this during last week when I was away on a cruise, in
which case I would not have heard it.

I am dropping Jr. Jay a line to-day in

this regard and hope to find out something of what is going on in Washington
from him.

I note your lamentation that so many topics at the conference were
passed without final action.

This also seemed to me a mistake as I thought

several of them could have been decided without waiting for further experience,
but most of the ones in question came up during the day when I was chasing
round after the Secretary

so you cannot blame me for the results.

I do not know whether you have seen the statement which your friend,
the Comptroller of the Currency, published the other day as to the benefits
conferred upon the downtrodden farmers of the country as a result of the famous
order of the Federal Reserve Board of September, 1915, authorizing preferential
rates on commodity paper.

In this statement he indicated that the result was

to have the member banks loan the farmers about one hundred and twenty-four
millions of money at not exceeding 6% interest, which was a wonderful showing
for one little order of the' board.

However, I took the trouble to analyze

the figures the other day and found the following rather amusing results:
The Comptroller stated that the amounts loaned by national banks on
commodity paper as of June 30, 1916, were as follows:




New England States
Eastern States
Southern States
:diddle States

Western States
Pacific States

,

13,000,000.
38,000,000.
37,000,000.
25,000,000.
2,500,000.
8.000.000.

123,500,000.

By looking at the reports in the Federal Reserve Bulletin one finds

3

,eliAL RESERVE !SANK OF NEW YORK

Benjamin Strong, Jr., Esq.,

9/11/16.

that the total amount of commodity paper rediscounted by Federal reserve banks

during the month of June, 1916, was 012,000., of which Richmond and Atlanta

contributed 006,000.

The total amount of such paper rediscounted during the

first six months of 1916 was ,0,370,000.

It is also to be observed that no rates of discount for commodity
paper have yet been established by the Federal reserve banks of New York,
Cleveland and Chicago and that no rediscounts of such paper have yet been made
by the reserve banks of Boston, New York, Philadelphia, Cleveland, Chicago and
Kansas City.

So that the net of it is that out of the Comptroller's

1.24,000,000.

of benefit a large majority was in a position where it could not have been
caused by the regulation of the board a-rid only $712,000. worth was of a charac-

ter where the original loan was necessarily at a rate of interest not exceeding
6%.

It would be interesting to follow this up a little further and compare

the amounts loaned by national banks on commodity paper in past years with the
amounts given by the Comptroller for this June, and also compare the rates of
interest charged during the various years.

I suggested to P. I. W. that an analysis of the figures given by the

Comptroller would lead to quite different deductions from those which he had
drawn and he urged me to publish such an analysis but I have not felt that it
was worth while to start trouble on the subject.
Yours very truly,

Benjamin Strong, Jr., Esq.,
The Lewiston,
Estes Park, Colo.
JFC/PE




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EQUITABLE BUILDING
NEW YORK

September 15, 1916.

2y dear Governor:

I enclose herewith the cancellation of assignment
of your Mutual Life Insurance policy #762306, together with
a duplicate, both of which must be executed, in view of the

fact that the cancellations you executed in July were not in
proper form owing partly to the errors of the insurance company and also to my own stupidity.
The same is true of your policy #1156987, for which
I am also enclosing cancellation and duplicate.
I am very sorry to have made such a stupid mistake.
Sincerly yours,

To Benjamin Strong, Jr., Esq.,
The Lewiston,
Estes Park, Colo.

JEC/EEB.
Encs. (2)

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FEDERAL RESERVE BANK
OF NEW YORK

October 13, 1916.

My dear Gov:

Hovensky of the Comerce has a client in Germany who desires
to buy some Mdes in South America and store them there until the close of the
war, when they are to be exported.

He desires to finance himself by draw-

ing ninety day bills, which the Commerce will accept, with a number of renewals
sufficient to last for two years, if necessary, the understanding being that
the goods are to be exported as soon as war conditions permit, and in the meanwhile the warehouse receipts for then are to be controlled bM agents of the
Commerce.

This seems to raise two points:
1st.-

Is the transaction based upon an export?

2nd.

Is two years a reasonable time for renewals under
existing conditions?

What are your views in this regard?
we get any reply from you

Probably we will have settled it before

but I should like to see where you would stand.

any event I think we shall probably submit it to the Board, as our action in
this case would tend to establish a precedent that might be of considerable
force in tines to cone.

I certainly am much indebted both to you and to Dr. Sewall for the
trouble you have taken about

I!.41Ak.

Larcey.

Before your last letter came,

I

had already had various of his relatives in the East write to him, insisting
upon the importance of obeying the Doctor's orders, and I have hopes that
they have produced someeffect.




I am to-day writing to Dr. Sewall, who was

In

ERAL RESERVE BANK OF NEW YORK

Benjamin

trong, Esq.

kind enough to advise me concerning Larcey'.s condition.
Sincerely yours,

Benjamin Strong, Esq.,
4100 liontview Boulevard,
l'enver, Colo.

JFC/CEP




10/13/16.

FEDERAL RESERVE BANK
OF NEW YORK

October 17, 1916.

My dear Guy:

I have your letters of the 10th and 11th.

Am sorry that I have been so slow in giving you my views about
amending the Clayton Act, also getting for you that list of private bankers
who were acting as directors, and so on.

In this latter regard, however,

the matter has been much simplified as the board has adopted a ruling (based
on an opinion of Elliott's which seems rather lurid to Cotton and myself) to

the effect that a private banker whose place of business is in a city or town
of less than 200,000 inhabitants and who has aggregate resources in his
business of less than c,5,000,000. does not fall under the ban of the Clayton
Act.

I will busy myself on this matter during the rest of this week and try

to get something to satisfy for a few brief hours your craving for mental
occupation.

The bill from the Piping Rock Club was all right;

ward and I have deposited the Tam of
Company.

it has gone for-

to your credit at the Bankers Trust

Please accept once more my thanks for your kindness.
You are more than optimistic about dividends;

to be right at the end of the next month or two.

I hope you m:v prove

Jost of us have been rather

figuring on paying one to the end of _larch, 1915.

I can't remember whether I wrote you last week about signing our new
permanent certificates of stock for the member banks, which are now on hand
beautifully engraved by the Bureau of Engraving and Printing.




They require

RESERVE BANK OF NEW YORK

e".
-

2

Benjamin Strong, Esq.,

10/17/16.

the signature of the governor, the Federal reserve agent and the secretary.
Mr. Treman, before beginning to sign them, thought possibly you might prefer
to sign them yourself as a matter of sentiment.
know and I will ship the package out to you.

If you do, please let me
There are only about 600 odd and,

if you like the form of exercise, I am sure the member banks will appreciate
the beauty of your signature.

There is no hurry about this matter so, if you

would like to sign them, just say the word.
There is not much new to report, except that Mr. Hamilton of '21organ's

told us confidentially that they were expecting some more very large shipments
of gold in the near future and wanted to know if we would like to buy some of
it so that we could keep up our gold supply and they could get immediate cash
for their importations, which they cannot do at the Assay Office owing to the
rush of business at the latter place, they being now in a position where they
can take in only about two and a half millions a day.

We are looking round

for some space to see if we can undertake this conveniently and I think we

probably can get enough additional space at the Clearing House to make it worth
while, but I am not sure about it.

Your additional foreign money arrived safely and I am putting it away
with the rest.

Everybody who gets back here seems to agree as to the "bloomingness"
of your health;

I hope you wOn't get your head turned and think you are now in

a position to do anything.

Kains was characteristically worried lest you be

overwhelmed by the hospitality of Denver, so I suppose from that remark that
you will probably need some restraining influence.
Yours as ever,

Benjamin Strong, Esq.,
4100 Montview Boulevard,
Denver, Colo.

JFC/PE



FEDERAL RESERVE BANK
OF NEW YORK'

o
.4'1'0

October 23, 1916.

<9/6,

dear Gov:

I enclose herewith a life insurance certificate for you (and also

one for Ws. McLaren) which shows that you are covered by the group insurance
policy of the bank.

Will you please hand .1.1rs. NbLaren's to her at your

convenience.

I have your two letters of October 18th.

If you have not already

heard, you will be interested to know that the board approved the eligibility

of W. Rovensky's proposed acceptances with renewals up to two years, thus
coinciding with your views.

I discovered myself in a minority of one on

that proposition as everybody here was in favor of taking the acceptances
except myself, my view being that the plan of holding stuff in warehouse for
two years with no contract of shipment or definite time of shipment in mind
was getting pretty far away from the theory of a self-liquidating 90-day
bill.

However, as long as everybody is pleased, I guess no trouble will

come.

I read of the organization of the Foreign Trade Bank in London,
but have not seen any details in connection with it and have not heard what
it proposes to do.

With respect to our foreign business, I agree with you that some
pressure on the Department of State should be exerted, but I don't think
there is really any use in attempting anything before election and, on the
other hand, I think it will probably do more harm than good.




I am convinced

77

.,.../
."-FEDERAL RESERVE BANK OF NEW YORK

Benjamin Strong, Esq.,

2

10/23/16.

that the administration has had plans for "twisting the lion's tail" which

would have been brought off about now had it not been for the appearance of
the U-53, which made a little change in sentiment.

However, it isn't all

over yet and a peremptory threat to use the powers granted to the President

under the new Revenue Act addressed to Great Britain may still be issued before the fifth of November.

If my diagnosis of their frame of mind is cor-

rect, they would not be likely to listen to our plans no matter how reasonable
or unconnected with their points of view such plans might be.
I am delighted to learn that you found such a good ready-made house
that fitted your needs so well.

It must have saved you a good deal of trouble

in the way of looking up furnishings and so on.
Charlie Norton and I are trying to get up a week-end of golf down at
the National, where we shall miss you.

We are going to get some of the fel-

lows from Washington and our old friend, Bik Bill Taft, and two or three others
and have an interesting time.
Be sure not to let the people of Denver feed you to death as they
probably will attempt to do.
Yours as ever,

Benjamin Strong, Esq.,
4100 lontview Boulevard,
Denver, Colo.

JFC/PE
Encs. (2)




'

Form a 1201

Blue

CLASS (

VIESTEansNA UNION

Nite

WESTERN UNION

SYMBOL

iiDaY M

Let,

_

Night ; .

re a

TEL

NI

If none or these three symbols
ifter the check number of
wordsais is a day message. Otherapp'

wise its character is indicated by the
1

symbol appearing after the check.

7ECEIVED AT

AVIF4 jr

esv

AM

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

5-919 Seventeenth Street, Denver, Colo.

CLASS OF SERVICE

SYMBOL

Day Message

Day Letter

Blue

Night Message

Nite

Night Letter
NL
If none of these three symbols
appears after the check number of
words) this is a day message. Otherwise its character is indicated by the

symbol appearing after the check.

°LAI"

YORK OCT 26 1916
,

1636

STRONG

4100 ANTVIEW BLVD DENVE,, COLD
SUGGESTS THAT
AE

IT MAY BE IMPROPER FOR NTIONAL BANKS TO AGREE

DISCOUNT THEIR OWN ACCEPTANCES 'AS JELL AS TO RENEW FOR

STOP LET ME HAVE-YOUR VIEJS ON THIS POINT AND ESPECIALLY
T

IF

AYTHI




SAID WHEN ORIGINAL BROWN AND BONBRIGHT CRE,DITS WERE

.0 STOP DID THE LATTER KNOW DETAILS OF THOSE CONTRACTS
BOARD WASHINGTON

J F CURTIS

OCT 27 1211AM,

1

FEDERAL RESERVE BANK
OF NEW YORK

October 28, 1916.

4 dear Governor:
ith reference to the new French export credit, I received your
various telegrams in Washington yesterday but was somewhat mystified by the
last sentence Of your original telegram, which when first delivered to me
read as follows:

"Important should not conclude argument with
revealing all correspondence and memorandum in our files
on this subject."
The telegraph company repeated this sentence so as to read:
"Important should not conclude argument with
reviewing all correspondence and memorandum in our files
on this subject."
I assumed that what you really said was, "without reviewing, etc.

But we

did not go over the whole story from our files with the board, although Jr. Jay
and i did to refresh our memories of what had taken place in the past so as to
be able to make a clear statement to them.

The history of this matter is

about as follows:

A week ago Thursday Kent invited Jay and myself to lunch and told us
that he had been working on this credit for about six or eight months and that
they were about to get their syndicate arranged and conclude the contract.
He said there would be about sixty high-class manufacturing and commercial
concerns in France that would draw on the American banking syndicate.

He

didn't show us any contract and, in fact, indicated that matters hadn't quite
progressed that far.




It appears that on the same afternoon he called in various news-

FEDERAL RESERVE BANK OF NEW YORK

cp

2

Benj. Strong, Esq.,

10/28/16.

paper men and told them the negotiations in confidence, with the understanding
that it was not to be published until he gave tire word to them all simultaneously to release it.

However, with its customary disregard of little matters of

that sort, "The Kew York American" promptly published the story on Friday morning, which forced the hand of the managers of the syndicate, i.e., the Bankers
Trust, the Guaranty Trust and Bonbright & Co., who then with much haste sent
out their circular to about four thousand banks inviting them to participate
in the syndicate.

This circular was not shown to any Cf us over here.

On Saturday morning the members of the Federal Reserve Board who

were in Washdngton felt much upset about the published newspaper articles concerning the credit on the ground that the managers apparently had made statements which might lead people to believe that the Federal reserve banks would
"hold the bag" and purchase all the acceptances under the credit which might
be thrown on the market.

They got in touch with Mr. Jay, who got in touch

with Kent, who tried to stop the circulars from going out but found they were
already in the mail.

Without notifying us of their intentions, the board sent a telegram
to each of the Federal reserve agents indicating that these acceptances were

not very desirable,and that the reserve banks should not buy them in large
quantities, and that the persons who might join the syndicate should be advised of this fact.

As soon-as we received the telegram, which was on Jonday,

we called them up at the board and got hold of Warburg, I think, who told us
the board were considering making a published statement for the newspapers in
connection with the matter.

:e urged them not to do this on the ground that

such statement would have two inevitable results:

Kill the credit "dead as a doornail," and
Lead to a newspaper controversy with bankers as
to whether the board or the trust companies were
in the right.
That night Jay and I jumped on a train and went to Washington and
had a conference lasting about two hours and a half with Messrs. Harding,



Benj. Strong, Esq.,

-RAL RESERVE BANK OF NEW YORK

10/28/16.

Delano and Warburg, at the end of which it was agreed that the best way to handle
it was to have the trust companies include in the next letter which they were
to write to those who desired to participate a statement to the effect that, in
order to avoid misunderstanding, they wished to advise the participants that,
while the acceptances were eligible for purchase by the Federal reserve banks,
it was understood to be the policy of the Federal Reserve Board not to encourage
large purchases of this class of acceptance which had the renewal provisions
included in the contract.

It was also understood that Governor Harding, who

is to make a speech here in New York next Wednesday evening, would make a
general statement of the position of the board with respect to acceptances of
this character without mentioning any particular credit by name.

We also

urged upon those members of the board to send another telegram to each Federal
reserve agent indicating that their first telegram was sent for his private
information and not for publication, which, I think, was done but I am not
sure.

word
On Wednesday we received..from Mr. :IcKay of Chicago that his executive
committee had voted that the proposed acceptances were not eligible for purchase by Federal reserve banks and that, therefore, we would kindly refrain
from buying any for their account.

Naturally, this action was quite a body-

blow for the undertaking as the Chicago bank was advising all its member banks
who inquired that the acceptances were not eligible.

The same was true in

Boston, except that after first advising tember banks that they were not eligible they changed around and later advised them that they were eligible.

While in Washington, we gathered from conversations with Delano and
Harding that the Comptroller was very much wrought up over the newspaper
articles about the credit and was very anxious to have a counter-statement
issued by the board or by himself, and, apparently, all of the members of the
board except Delano were much exercised over the situation, he having said
that when he returned to Washington on that Jonday he found them in a great



AESERVE BANK OF NEW YORK

state of excitement..

4

Benj. Strong, Esq.,

10/28/16.

Harding told me when we were alone together that Willis

was very much excited about it and had almost given the whole matter to the
press with a statement before they had held him up, and he also told me that
his awn view was that it should be managed without publicity and thought that
the plan of having the trust companies issue a supplemental explanatory letter,
coupled with his speech, was the correct way of handling it.

Jay and I left

Washington on Tuesday afternoon,thinking it was all settled, with various
suggested forms for this supplemental letter to be submitted to Kent.

On

Wednesday Kent and his associates went over the draft of statement and changed
it somewhat and submitted what they thought would be appropriate, which was
forwarded to the board.

On Thursday the board met again and decided that the

Kent draft would not meet the situation, and, apparently, the Comptroller at
that point became convinced that the whole matter was illegal so far as national banks were concerned, apparently on the ground that national banks have not
the right to combine an agreement to renew acceptances for a period of eighteen

months plus an agreement to advance the funds themselves, if necessary.

I do

not know what provision of law prevents this and have not yet discovered what
one he thinks prevents it, but, anyway, it raised a new complication and so it
was suggested that Kent and Hemphill go to Washington for a conference yesterday (Friday) together with Cotton, Jay and myself.
undertaken once more,

So the pilgrimage was

r. Jay having been there on Thursday anyway to attend

a meeting of the executive committee of the Federal reserve agents' conference.
0

On Friday morning Jay and I had a long talk with Cotton, Elliott,

and Harrison, all of whom apparently had got it into their heads that the
combination of the two undertakings of the national banks was in some way in
violation of the provision that they should not make acceptances to run for
more than six months.

I argued this for about an hour and a half at the

close of which Harrison said he had come round;

Cotton was looking at t

ceiling with his feet on the desk, in an atmosphere of coma, and Elliott had



.1.41( OF NEW YORK

5

Benj. Strong, Esq.,

peared with the papers to look something over.

10/28/16.

At two o'clock Kent and

Hemphill arrived and at half past two we all went to the board room and had a
meeting with the board, at which they were all present except JcAdoo and Hamlin.

Harding started off by saying that the board had made up its mind that

a statement must be made and they would give opportunity to the trust companies
to make a statement to the prospective participants of the general nature of
one which he read aloud, or the board would issue a public statement.

There

ensued a debate lasting for about three hours in which the following statements
were made:

Warburg said he didn't believe in the credit anyway, that it was on
the wrong basis and ought not to be encouraged.
Hemphill said that the board had already practically killed it, that
it could not now amount to more than fifty millions and that all the subscriptions they had received so far totaled only eighteen millions.

He asked

Harding whether there were any misstatements of fact in their circular and
suggested that they take up the facts stated in order:
1.

Were the bills eligible or not.

To my amazement .Mr. Harding did not answer this question directly,

but one of the members of the board (I have forgotten which) said that it was
a matter under consideration.

Miller suggested that, while the bills were

eligible, they were not eligible, his point apparently being that, while they

were eligible as a matter of law, they were not eligible as a matter of prudent
banking.

I suggested to him that the word "eligible" by constant use in the

regulations of the board had now acquired a definite fixed meaning which everybody interested in the matter knew, but this suggestion fell by the wayside.
Toward the end of the argument Hemphill made a plea that nothing at all be done
on the ground that if the object of the board was to kill it they had succeeded

already, that the trust companies would guarantee it would not exceed fifty
millions in any event, and that if it were killed any more they would have to



/SANK

OF NEW YORK

6

Benj. Strong, Esq.,

10/28/16.

Tort to their friends in France that this credit had been killed by the
action of the Federal Reserve Board, which he thought would be an unfortunate
situation.

Somewhat to my surprise this plea seemed to have some effect upon

the board, who apparently said they would consider it ,further, but at 5:10 I

left the meeting to catch the train home and don't know what happened after

that except that Kent and Hemphill, who took the same train, seemed to be a
little in doubt as to what shape the matter was in at the end of the conference.

x. Jay stayed over in ':iashington where he is to-day, but I have not

heard anything further from him.
Since returning this morning I find a letter from the Federal Reserve
Bank of ilinneapolis stating that their executive committee has concluded that

the bank ought not to participate, directly or indirectly, in acceptances growing out of the French credit about which the Federal Reserve Board has communicated with all the Federal reserve banks.

We have not yet made any reply to

Chicago or _Iinneapolis, thinking it would be better to wait until some decision
has been reached.

The funny .part, from my point of view, is that this credit is ar-

ranged along a line entirely similar to all the others which we have been buying for the last fifteen manths.

The record shows that the board had a copy

of the original Brown credit for eight days before they published the revised
regulations which permitted the purchase of acceptances of the character being
made under the Brown credit, but each member of the board thinks that he never
saw the paper, and they are all firmly convinced they never knew that in any
of these credits the acceptor was obligated in one form of words or another to
supply the funds at the time of the original acceptance as well as at times of
renewals.

At the conference yesterday, I thought 1arburg made a very good
speech on the theory of the acceptance business, in which he stated that he



SANK OF NEW YORK

Benj. Strong, Esq.,

10/28/16.

thought the practice of acceptors in this country of furnishing the money and
holding their own bills was not the best way to have the acceptance business
grow up in the United States, and he asked Kent if he thought that was the
normal way to have the business conducted.

On the Other hand, I thought

Kent's reply was also very good, in which he said that that way was as normal
to-day as living to-day was, that the war had changed all forms of international relations, and that the development of the acceptance business in this
country could not be done on the basis that it had been developed in England
over a period of some hundreds of years.

I am sorry that we have not had better success in this matter.

The

Lord knows we have struggled hard enough, but I don't think we have accomplished anything.

To my mind the credit is practically killed and probably cannot

be revived with any semblance of unbroken life, and I don't think anybody is
better off for it.

4 own view would be to write to Chicago and jinneapolis

and ask them if they desire us to stop purchasing any French acceptances for
them, .on the basis that there is no distinction between the new ones and the

old other than the fact that the new have industrial and manufacturing concerns
as drawers whereas the old had bankers.
It is an astonishing fact that in all the conferences, debates, correspondence and general mix-up that you had with the board in July, August and
September of 1915 there does not appear to have been a specific reference to
the fact that the participants in the Brown credit were obligated (i.e., they

covenanted and guaranteed to have the acceptances discounted at the agreed
rate) to furnish the money or see that the money was furnished.
To pass on to a pleasanter subject, let us come back to our old
friend - the situation of the private bankers .in this State under the Clayton
Act.

In accordance with your request, I enclose herewith a list of the

private bankers who are directors in State banks and trust companies,together




-

Benj. Strong, Esq.,

ASSSSYS SANK OF NEW YORK

10/28/16.

the sources of information from which the list was made up.

I am sorry

I have not had time to go over the drawing up of an amendment in this regard.
Your letter of October 23rd has just arrived.

The first two ship-

ments of gold, amounting to about ten million dollarS., have been received and
put into the Clearing House.

As you suggest, we are taking a guarantee from

..organ of the contents of the bags, and the 1% is not to be paid over until

we receive final payment from the Assay Office, which,, of course, will be at
the end of our holding the gold.
Yours very truly,

ecip_
Benjamin Strong, Esq.,
4100 Montview Boulevard,
Denver, Colo.

JFC/PE
Enc.




Dictated by Er. Curtis but only partly read by him.

FEDERAL RESERVE BANK

OF4EW YORK
NO/
October 30, 1916.

4

dear Guy:

Since writing you on Saturday the French credit matter has progressed a little bit, about as follows:

Mr. Harding called up Mr. Treman and suggested that we get hold of
Messrs. Kent and Hemphill and say to them that, if the amount of member bank
20,000,000., the board

acceptances involved in the credit was not to exceed

would be inclined not to make any announcement and not to ask the trust companies to issue any additional letter or circular.

Accordingly, we got hold

of Messrs. Kent and Hemphill and told them this, and they agreed that the
member bank acceptances would not exceed cr;20,000,000.

Mr. Harding is to make a speech here on Wednesday night in which he
is to outline the general policy of the board, and I understand also from him
that he is to send a copy ofthis speech to each Federal reserve agent confidentially, as indicating the policy the board would like to have them pursue.
He is to send a copy of this over to us to-night for our information.
After our conference, Mr. Treman called up Mr. Harding again and told
him of the understanding reached.

So there the matter rests, with everybody

dissatisfied to a certain extent.

Your letter to Mr. Brian Cokayne has been forwarded to him with the
following change on page five in the second paragraph.

After the word

"follows" we have inserted "Every Federal reserve bank shall have power," in
order to make the context a little clearer.




.AL RESERVE BANK OF NEW YORK

2

Benj. Strong, Esq.,

10/30/16.

We are to have a meeting with Messrs. Rhoads, McDougal, Aiken and
Fancher to-morrow and we may be able to get the French credit in better shape,
but I doubt it.
(Continued October 31st)

Since writing the above, we have had a meeting with Messrs. McDougal,
Aiken, Fancher and Seay in which various matters were gone over very thoroughly,
especially the French credit.

We got Ir. Kent over to give a further explana-

tory talk on this matter, and we also received a copy of Mr. Harding' s address,

which I enclose herewith.

After reading it, we called him up and Aiken urged

that the parts marked on pages 16 and 19 be eliminated as we thought they would
both give erroneous impressions of the French credit and the possibility of our
foreign relations.

Mr. Harding replied that it was too late to change the

speech as it had already been sent to the newspapers for release on Thursday

morning, but that he would make it clear in his speech that the part on page 16
was not intended to apply to acceptances of the character now being purchased
or to be purchased under similar credits but was intended to apply only to
finance bills pure and simple.

With respect to the foreign arrangements, he

felt that the phrase we objected to would not be a commitment of the system not
to undertake such relationships until after the war, which was what we were
afraid of.

He also telephoned the substance of instructions that were going out
from the board to-day to all Federal reserve agents, of which I also enclose a
copy.

It is rather hard to see where this will lead the matter, but I fear
the effect of the speech will be unfortunate.
Yours as ever,

Benj. Strong, Esq.,
4100 lontview Boulevard,
Denver, Colo.
JFC/PE

Encs. (2)


'5(
er){ / e




FEDERAL RESERVE BANK

lazk,

OF NEW YORK

November 2, 1916.

y dear Gov:

I enclose herewith a copy of the minutes of the
recent meeting of the bond selling committee which speaks
for itself.

We are calling a conference of the governors to
be held at Washington on December 11th next.

If you have

any suggestions for topics, please let me know.

There is nothing new today here.
I am going to make a real reply to your latest
letters when I get a little more time.
Yours sincerely,

Benjamin Strong, Esq.,
4100 Montview Boulevard,
Denver, Colo.

JFC/PE
Enc.

FEDERAL RESERVE BANK
OF NEW YORK

November 3, 1916.

My dear Gov:

I have your note of the 31st enclosing the s

ps from the Piping

Rock Club, for which I am much obliged.

I had just learned that Laracey has lef Denver to return to the
East which, I am afraid, is in the nature of c a/l
mmitting suicide.
this apparently on the advice of one of his
without any consultation with us and,
Sewall.

He did

rothers here and, naturally,

uppose, without talking to Doctor

It is a crime that they sho id take such an attitude as Laura and

I had got his aunt, who works for
him abide more strictly by the

to write to them urging them to make

octor's orders, but I am afraid that the milk

is spilt now.

leanwhile, please accept our most grateful thanks for all that you
did for him out there.
Sincerely yours

Benjamin Strong, Esq.,
4100 Montview Boulevard,
Denver, Colo.

..TFC/PE




FEDERAL RESERVE BANK
OF NEW YORK

November 3, 1916.

N08
My dear Gov:

We have been over your letter to Mons. Pallain, which we are taking
the liberty of holding up although we are sending forward the various papers as
you request.

May I make one or two suggestions about your letter, as follows:
On page one, in the second paragraph, I would insert after the
word "liabilities" at the end of the sixth line a semicolon, and strike out the
comma after the word "account" in the next line, otherwise I am afraid the Door
Frenchman may not quite get the full beauty of the thought.
On page two you say that "the suggestion for a specific transaction, aggregating, say, "20,000,000., preliminary to a more general understanding is now awaiting final consideration by some of my associates in
Washington."

This is in the nature of news to us here as we have not taken

any steps towards placing this matter before the Federal Reserve Board and had
no knowledge that you had done so.
you think that we have?.

Do you mean that you have done so, or do

What you say in the rest of your letter seems to me

to indicate that Mons. Pallain's suggestion about the twenty millions could not
be worked, so I don't quite understand what you mean in this regard.
On page three, in order to maim the context a little clearer, I
would suggest inserting after the word "purchase" in the first line the words
"in this country."

For the same reason, on page five I would suggest that the first
part of the second paragraph be changed to read, "Also, if exchange became



_DERAL RESERVE BANK OF NEW YORK

2

Benj. Strong, Esq.,

11/3/16.

adverse to this country and continued in that situation for any length of time,
we would naturally, etc."

I would suggest this because I feel that any

foreigner translating this paragraph might not readily connect it with the preceding one if left in its present shape.

As to my seeing Frank Polk, I think it would be a good thing to do
informally and, of course, I can do this without stirring up any trouble and
will take occasion to see him as soon as opportunity offers.
Perhaps I am rather dumb about the twenty million dollar transaction

which possibly you mentioned as you did in order to waste a little time, but
it strikes me that your remarks under that head are really not consistent with
the rest of the letter.

I understand Mr. Treman is writing you more fully

on this matter today.
Yours sincerely,

Benjamin Strong, Esq.,
4100 Montview Boulevard,
Denver, Colo.

JFC/PE




FEDERAL RESERVE BANK
OF NEW YORK

November 10, 1916.

My dear Gov:

I enclose herewith the list of private bankers which you
sent me the other day, on which you will find noted the firms of
which the individuals are members.

I will get busy over Sunday on

your plan for an amendment to the Clayton and hope to get something
off to you on this subject next week.

I also enclose herewith copy of such correspondence as we
have about the National Bank of Commerce German hide credit, which,
as a matter of fact, has not yet been arranged.
I have your letter of the 6th.

With respect to the

United States 3s, we had a little mix-up over the last million that
was sold to the First National Bank of Chicago, but it has now all
been straightened out satisfactorily.

We had a very clear under-

standing with them that all six millions were to be placed with a
customer and not to come on the market for a considerable time.
They tried to put the last million on the market right away and thus
spoil Harvey Fisk's situation.

After we had taken the position

that they must either keep the bonds off the market or the sale of
the last million would be canceled, they finally climbed down and
agreed to hold them off.




FEDERAL RESERVE BANK OF NEW YORK

....

Benj. Strong, Esq.,

11/10/16.

I cannot write much of a letter to-day as I am off this

0

afternoon to Cambridge to see your pets go down to defeat.
I hope your health continues to improve.
Yours sincerely,

Benjamin Strong, Esq.,
4100 ..Iontview Boulevard,

Denver, Colo.

JFC/PE




PRIVATE BANKERS IN NEW YORK CITY
WHO ARE DIRECTORS IN STATE BANKS AND TRUST COMPANIES

Empire Trust Company

J. S. Bache

International Banking Corporation
James A. Blair

New York Trust Company

Harry Bronner

Equitable Trust Company

Franklin or Brown

Columbia Trust Company

James Brown

Mercantile Bank of the Americas, Inc.

It

It

Union Trust Company

Thatcher U. Brown

Mercantile Bank of the Americas, Inc.

E. E. Bulkley

Bankers Trust Company

Henry P. Davison

Bankers Trust Company

Eugene Delano

N. Y. Life Insurance & Trust Company

John B. Dennis

New York Trust Company

Charles D. Dickey

U. S. Mortgage & Trust Company

* Murray W. Dodge

Franklin Trust Company, Brooklyn

Benjamin S. Guinness

New York Trust Company

Henry R. Ickelheimer

Fifth Avenue Bank

It

II

It

U. S. Mortgage & Trust Company

Adrian Iselin, Jr.

Central Trust Company

C. 0,D. Iselin

N. Y. Life Insurance & Trust Company

Ernest Iselin

U. S. Mortgage & Trust Company
Union Trust Company

Otto H. Kahn

Equitable Trust Company

W. DeLancey Kountze

Lincoln Trust Company

Thomas W. Lamont

Guaranty Trust Company

Charles Lanier

Central Trust company




-2-

R. Walter Leigh

Franklin Trust Company, Brooklyn

Walter Luttgen

Transatlantic Trust Company

Edgar L. Marston

Astor Trust Company
Bankers Trust Company
Guaranty Trust Company
Title Guarantee & Trust Company

Horace J. Morse

Peoples Trust Company, Brooklyn

Edwin W. Orvis

Colonial Bank
Greenwich Bank

Charles J. Peabody

Franklin Trust Company, Brooklyn

Wm. H. Porter

Astor Trust Company

It

II

Fifth Avenue Bank
Title Guarantee & Trust Company

Dallas B. Pratt

BP/9k of America

Oscar L. Richard

State Bank

Max Ruckgaber, Jr.

Peoples Trust Company, Brooklyn

Charles S. Sargent, Jr.

N. Y. Produce Exchange Bank

Jacob H. Schiff

Central Trust Company

timer L. Schiff

Fidelity Bank
U. S. Mortgage & Trust Company

John S. Scully

Montauk Bank, Brooklyn

Isaac N. Seligman

Lincoln Trust Company

James Speyer

Bank of Manhattan Company

It

Albert Strauss




Title Guarantee & Trust Company
Guaranty Trust Company
Mercantile Bnnk of the Americas, Inc.

-3-

Frederick Strauss
tt

Columbia Trust Company

U

Mercantile Bank of the Americas, Inc.

Jesse Isidor Straus

Lincoln Trust Company

Henry R. Talmadge

Empire Trust Company

Moses Taylor

N. Y. Life Insurance & Trust Company

Henry H. Wehrhane

Transatlantic Trust CompaAy

M. Orme Wilson

Union Trust Company

Beekman Winthrop

Farmers Loan & Trust Company

PRIVATE BANKERS IN NEW

yaix

STATE (OUTSIDE KEW YORK CITY)

WHO ARE DIRECTORS IN STATE BANKS ArD TRUST COMPANIES
H. E. Crissey

Farmers & Mechanics Bk., Jamestown

C. R. Nelson

Peoples Trust Company, Binghamton

Leo Frank

St. Lawrence Trust Company, Ogdensburg

t E. Perkins

Union Trust Company, Rochester

(The names of private bankers were obtained from a list published
in R. G. Dun & Company's Reference Book and from the statement of the New
York State Banking Department.

The directors were taken from the Rand-

McNally Bankers' Directory of July 1916.)




Murray W. Dodge

Walter Luttgen
Horace

J.J.

G

Morse

Edqin W. Orvis

(Ap

Oscar L. Richard

C.

0, pA,LeiJ,_el 4-co

John S. Scully
M. Orme Wilson
Beekman Winthrop

- Vo-rf

__co

H. E. Crissey
(4-.

R. Nelson

_

0

Leo Frail

y
y

E. Per

/

Jesse Isidor Straus







EQUITABLE BUILDING
NEW YORK

410k,
4 49;6,

November 10, 1916.

4 dear Gov:
I have finally straightened out all your insurance
matters, I believe, as follows:

.1;;25,000. worth of fire in-

surance has been transferred to your furnitire and personal
effects, etc. at the warehouse;

11,000. worth of your fire

insurance on the effects that were formerly in your apartment
has been canceled;

the burglary insurance on effects former-

ly in your apartment has been canceled and a return premium
will be forthcoming;

burglary and fire insurance on property

at Greenwich has been transferred to Mrs. Strong and the policies disposed of in accordance with a letter to the Astor
Trust Company of which I enclose a copy.

Mr. Carraway has made out a new policy to take ef-

fect on December 22nd next for 10,000. to replace the Westchester policy that expires on that day.

I enclose herewith

his bill, and am sending under another cover your insurance
register so it can be written up by Mrs. McLaren.
I also enclose two letters from Mr. Carraway, one

of which is about doing your accident insurance for you in
the future.

In this connection I ought to say that Mr. Coe




4

11/10/16.

Benj. Strong, Esq.,

seemed to feel a little badly about my having employed Mt.
Carraway so possibly it would be better to stick by the original brokers in the future;

however, I leave this matter to

your judgment, naturally.
Sincerely yours,

c-4Benjamin Strong, Esq.,
4100 Montview Boulevard,
Denver, Colo.

JFC/PE
Encs. (4)

Dictated by Mt. Curtis but not read by him.

FEDERAL RESERVE BANK
OF NEW YORK

40

1.4
November 17, 1916.

My dear Gov:

I have your two letters of November 14th, and in reply to the personal one will let the insurance matters rest for the present as you suggest.
The other matters discussed in your second letter were all the subject of debate at a rather fortuitous meeting to-day, at which we had Messrs.
Warburg, Aiken and Rhoads.

We all came to the same conclusion that you did about the government bond matters and thought it would be wise to have the committee on disposition of government 3s act for all the banks in purchasing 2s.

Mr.

Warburg felt that we would do well to write the suggestion to the board to see
if they had any objection, in view of the fact that last year it was the Comptroller who'tpset the apple-cart" on the theory that such joint action would
amount to a conspiracy in teliistraint of trade and spoil the market for his

beloved defunct banks;

so'I think it is likely that we shall take this course.

The necessity for it was well illustrated yesterday (our directors having
A.6

voted the day before to authorize the purchase of a million.Zwat not higher
than 99 7/8) when Childs offered us a million at 100 1/16, we replying that
we were not interested.

About two hours later we got a telegram from Cleve-

land to transfer a million dollars to' the Mechanics & Metals National Bank for
the account of Childs;

so it appeared that Fancher had been bidding against

us, which certainly is an unfortunate situation.
straighten it out in the near future.

I think we might be able to

The board has notified us that bonds

Purchased in November and December will be counted to our credit in making up



FEDERAL RESERVE BANK OF NEW YORK

2

11/17/16.

Benjamin Strong, Esq.,

the amounts to be allotted to us both under the twenty-five million of purchases and the thirty million of conversions, which accounts for the sudden
scramble for the 2s.

During the course of the discussion to-day Mr. Woodward came over
and we spent considerable time debating the policy to be pursued with respect
to so-called renewal acceptances and with respect to differentials in our
rates generally.

No final conclusions were reached except that it seemed to

be the consensus of opinion that the governors of the principal banks in the
East should make up their minds about what amounts it was wise for the Federal
Reserve System as a whole to have of such acceptances and when that amount was
reached for the New York bank and others to raise the rate on that class of
bill.

This was something of a concession from Mr. Warburg's original view

that we ought to raise our rate now.

Mr. Aiken suggested the advisability of

reducing the differential for bills indorsed by member bank from one-quarter to
one-eighth, but this did not meet with approval from the others present.
I took advantage of the opportunity to bring up the question of a
change in the rate of allotment of the investments and produced some figures
prepared by Mr. Kenzel and Mr. Jefferson, a copy of which I think has been sent
to you, which show that New York, Philadelphia, St. Louis and San Francisco
ought to have their proportions raised.

Mr. Warburg agreed, especially about

New York, and we are going to send our figures on to Mr. Seay within a day or
two.

I advanced the view that, inasmuch as all the reserve banks and all the

member banks were now interested in the question of the payment of dividends by
the reserve banks, we ought to take the net earnings as a basis for making up
distribution so that those banks which are still falling farther behind in this
matter might be given an opportunity of catching up.

I believe that a sub-

stantial charge will be made in the basis at the next meeting.
During the course of the acceptance discussion I made some humorous
remark to:M±.. Warburg (who had previously said that we in New York were con


_RVE BANK OF NEW YORK ......_

Benjamin Strong, Esq.,

_3_

11/17/16.

Anually trying to stretch the already liberal interpretations that he made in

t7

7ashington) about his stretching farther than some of us here would do with respect to the Argentine hides to be shipped to Germany after the close of the

war with two years' renewals attached, to which he replied that I hadn't given
him a complete statement of the credit because I hadn't told him that the

National Bank of Commerce was to obligate itself to furnish the money at a
given rate.

I told him that I had given him all the information I had at the

time and that it had been sufficient for him to make a ruling on,-but he still
thinks that it would be less of a stretch than on the French renewals apparently because the hides would still be in existence at the end of the two years.
We also spoke about the rulings with respect to "dollar exchange"
in connection with which he expressed the view that the bills should be in connection with imports and exports.

I stated that I did not see any point in

tying the matter down so close as, if that was to be the attitude of the board,
there was no sense in having the amendment passed at all as the banks already
had authority to accept such bills under the old law.

In this connection Mr.

Gardin of the National City Bank is probably going to arrange with four or five
other bankers interested in foreign exchange to go to Washington to have a discussion with the board some time in the near future, which, I think, will be
very helpful.

The other day I had

a

chat with Hoffman, who now represents the

"Times," in which he told me that it was rumored about that Mr. Starek had had

a falling out with the Comptroller, that he had recently gone to the custom
house to see what he could find out about it and found 11r. Starek away on a

vacation and the Comptroller there at the office,

who introduced him to a Mr.

Richmond who has been put temporarily in charge of the office.

The Comptroller

denied that there was any such situation, but Hoffman feels sure that it is true
in view of the fact that Mr. Starek apparently is spending his vacation on the
lower part of Manhattan Island, although not at his office.



The latter has not

ERAL RESERVE BANK OF NEW YORK

Benjamin Strong, Esq.,

4

11/17/16.

*

been to a board meeting for six or eight weeks and I had an idea that he was
sick, but apparently this is not so.
-

4011?

Mr. Atkinson of W. E.

Co0's

office called me up just now to ask

whether your share in the Spesutia Island Rod and Gun Club is for sale and, if
so, how much you want for it as /0±.

Cos,

would probably like to buy it.

If

you will let me know about this, I will communicate with him or you can do so
direct, as you prefer.

dined last night at a house where the Colonel was with a small
party and, as usual he did all the talking.

It was very interesting, especial-

ly with respect to what actually happened in California.

He thinks it was

mostly Mr. Hughes' own fault and misfortune in not knowing what the real conditions were out there and getting himself completely tied up with the Old
Guard, represented by Crocker, so much so that he never saw Johnson during the
three days that he was in the State.

The Colonel says that no one could

persuade the people of California that Hughes was not an absolutely standpat
II

Old Guard follower, all the people going on the basis of seeing is believing
to the tune of a difference between his and Hiram's vote of more than 250,000.

However, the Colonel did not contribute the result to the poorness of the campaign, although he thought it had been poor, but to the general disgusting
attitude of the people of the country who were satisfied with a full dinner-pail
and "he kept us out of war." . He also told us of a most extraordinary interview
Alt,A4mk17

he had had with HermantRidder and another German editor, who came to him before
the convention and said that they were for him.

When he expressed astonishment

and said that they ought to know his views about Germany's actions, they replied
that they had read everything he had said and written and were still for him on
the basis that, while he had denounced certain things that Germany had done, he
was obviously not pro-British and that he would do what he said he would do,
whereas they knew that Mr. Wilson would not.




You have doubtless heard that the day before yesterday we raised the

Benjamin Strong, Esq.,

5

JERAL RESERVE BANK OF NEW YORK

11/17/16.

rate on acceptances a quarter of one per cent, which caused a mild discussion
among bankers downtown but otherwise apparently has not had much effect from the
number of bills offered.

The general comment on it was favorable.

Boston and

Philadelphia have also raised their rates.
*Kent tells me that his French credits have been taken up to the fifty
millions they were originally counting on for the first contract, of which about
fourteen or fifteen millions are member banks'.

Please accept my apologies for not having an amendment to the Clayton
Act ready for your blue pencil to-day, but I am in my usual position of just not
having got around to it.

I hope your health continues to improve and your weight increase.
Yours sincerely,

Benjamin Strong, Esq.,
4100 Montview Boulevard,
Denver, Colo.

JFC/PE




4..* 44,
Ch_Vitt

4'n/64

.

r-Jc

FEDERAL RESERVE BANK
OF NEW YORK

levember 18, 1916.

My dear Governor:

I enclose herewith a draft of a suggested amendment to the Kern Amendment of the Clayton Act which, I think, would bring about the desired result of
permitting a private banker to be a director of a member bank or trust company
and not more than two other institutions.

If it is desired to exclude private

bankers from being class A directors of Federal reserve banks, the provision in
brackets at the end of this draft might be included as part of the amendment.
I have been over with some care your letter of September 23rd

in

which you give your views on a proposed amendment to cover this matter, and I
cannot see the necessity for the elaboration appearing in your draft.

As the

board has already ruled that the private banker provision of the original Clayton Act does net apply to private bankers with resources of less than five
million dollars who are situated in cities and towns of less than two hundred
thousand, of course all we mlled to look out for are the private bankers that
fall outside this category.

But there seems to be no objection to making the

terms of the Kern Amendment sufficiently broad to include all private bankers
without going into details as to which ones were already affected by the original
Clayton Act.

I note your suggestion about adding a section or clause similar to
that found in section 31 of the far-famed Burton Bill.

You do not' state

whether your purpose in adding such a section is to ameliorate or exacerbate




VEBANKOFNEWYORK

2

Benjamin Strong, Esq.,

11/18/16.

the lot of the private banker who becomes a director of a member bank, but the
effect of such a provision would be the former, I think, as section 22 of the
Federal Reserve Act already covers the point in what seems to me a comprehensive
way.

Of course, the scope of section 22 is somewhat in doubt and it might be

well to make clear either that ordinary transactions between a private banker
and a member bank of which he is a director shall be permitted or shall not be
permitted as a matter of public policy.
1, personally, am in favor of a policy which says that all such
transactions shall be forbidden as I think the other policy leads to great
abuse.

On the other hand, as a matter of expediency it may be wiser to permit

such transactions in order to encourage the trust companies to come into the
system.

Yet, again, there remains the question of how much of it you can get

past Congress.

Will you let me know what you think of my suggestion, and accept once
more my apologies for the delay in getting it to you.
Yours sincerely,

Benjamin Strong, Esq.,
4100 Montview Boulevard,
Denver, Colo.
JFC/PE
Enc.




SUGGESTED AAENDMENT TO THE KERN AAENDAENT

It is suggested that the proviso be amended so as to read as follows:
"AND PROVIDED FURTHER,

That nothing in this Act shall prohibit any

officer, director or errploye of any member bank or class A director of a Feder-

al reserve bank who shall first procure the consent of the Federal Reserve
Board,

which board is hereby authorized at its discretion to grant, withhold or

revoke such consent, from being an officer, director or employe of not more
than two other banks, banking associations or trust companies, whether organized under the laws of the United States or any State, or a private banker, if
such other bank, banking association or trust company or private banker is not
in substantial competition with such member bank.

"The consent of the Federal Reserve Board may be procured before the
person applying therefor has been elected as a class A director of a Federal
reserve bank or as a director of any member bank, or in connection with the
application for admission of a State bank, banking association or trust company
to membership in the Federal Reserve System."
(PROVIDED FURTHER,

That no private banker shall be a class A di-

rector of a Federal reserve bank.)




OF" T. RESERVE BANK
NEW YORK

5:45

JFC/P

Festal.

(TO BE MAILED)

CONFIRMATION OF TELEGRAM
We have today telegraphed you as follows :

November 29, 1916.

Benjamin Strong,
4100 Montview Boulevard,
Denver, Colo.

Corey wants Spesutia share for five thousand

Please send instructions.

J. F. Curtis.
(Charge)

o

B-2




acdm

e-wvG--

FEDERAL RESERVE BANK
OF NEW YORK

November 29, 1916.

Dear Gov:

I understand that Mr. Treman is writing you fully concerning our
board meeting of yesterday, so I will not bother you with a repetition of it.
By this time I assume you have seen complete copy of the announcement
issued by the board yesterday, together with the comments made thereon by various bankers.

The general feeling here seems to be one of criticism, especial-

ly with respect to the part where they undertake (after saying that it is no
part of their function) to advise private investors how to invest their money.
My own view is that this portion is entirely uncalled for and hardly a proper
exercise of their authority.

In principle they might, as I see it, just as

well say that investors should not buy any more United States Steel Corporation
bonds without looking carefully into the situation of that company.

The an-

nouncement had considerable frect on the market - a certain amount on stocks
but principally on the various foreign bond issues, all of which dropped yesterday from one-eighth to a point and some of which continued dropping to-day.
As you may imagine, poor Cazenave and Bloch are in despair; figuratively speaking.

I lunched with them the day before the announcement was published and

they told me then, confidentially, that the sledding was pretty hard owing to
atmospheric conditions in 7ashington.

Cazenave added pathetically that he

didn't know exactly what was to be done to please the bankers of the United
States, who appeared to feel upset over the large influx of gold but who,
nevertheless, did not want to have commercial credits last longer than ninety




t."
41101.

RAL RESERVE SANK OF NEW YORK

Benjamin Strong, Esq.,

2

11/29/16.

days and would not approve any more foreign bonds or treasury bills.

He said

he began to wonder whether it was desired to reduce the amount of the export
business of the United States, and I think a good many people are echoing his
sentiments to-day.

However, "the beans have been spilt" and it only remains to

assist in picking up the pieces.

Cazenave was to have spent Thanksgiving with

us on Long Island but he telephoned me yesterday that he had to go to Washington
to see what could be done.

Mr. Jay is still "under the weather" and, according to his doctor,
narrowly escaped having pneumonia.

He is planning to go to the Federal reserve

agents' conference to be held in Washington next Zionday, but I hope he will not

undertake it as I think it would prove too much of a strain on his constitution
in view of the pulling down which his bronchitis has caused.
We are having the combined auditors and transit men's conference
(really separate but at the same time and place) at Chicago on the 4th in order
that they may present recommendations, through a small committee, at the governors' conference on the 11th.

Mr. McCord has written to each of the governors

asking whether it would be agreeable to them for him to have Mr. Walker, manager
of the New Orleans branch, attend the conference.

We replied that we saw no

objection, but I understand that Aiken and McDougal have stated that they preferred not to change the rule, so that the country may be saved after all.
In response to a suggestion we made last week, the board has written
that they perceive no objection to the plan to have a committee formed to purchase government 2s and, accordingly, I have sent out a suggestion to each of
the governors to the effect that the same bond committee be appointed to purchase
the 2s on joint account for all the banks that desire to participate, with
authority to fix prices, commissions, etc., in the same manner that they did with
respect to selling the 3s.

I have only one reply so far - from Kains, who

agrees to the plan but says he does not care to make any purchases through the
committee till after the first of the year.



CRAL RESERVE SANK OF NEW YORK

2

Benjamin Strong, Esq.,

11/29/16.

I have just talked with Mt. Corey by telephone, who say S that he

would like to buy your stock in the Spesutia Island Rod and Gun Club for
,5,000, and I have accordingly telegraphed you to-day as per confirmation
herewith.

If you will tell me what you would like to have done about trans-

ferring this matter for you, I will try to collect the cash.
I enclose herewith a tentative draft of the programme for the next
conference of governors which will be made up finally in a few days.

I hope

I think the board had

it does not meet with your too severe disapproval.

some of your feeling about the lack of action at the last conference as, in
reply to my request for subjects, Ir. Harding wrote me that he hoped some of
the matters in connection with the collection and clearing system that were
left unanswered at the last conference might be taken up again.
We are about to have a new arrival in the family, the Bank of Mont-

clair having made up its mind to apply for membership, but this is strictly
confidential at present.

I hope you have a good fat turkey out your way for Thanksgiving and
that your doctor will let you eat 'im all.
With best wishes for the season, I am,
Sincerely yours,

P.
Benjamin Strong, Esq.,
4100 TIontview Boulevard,
Denver, Colo.

JEC/PE
Encs (2)




Dictated by Mr. Curtis but not read by him.

FEDERAL RESERVE BANK
OF NEW YORK

December 2, 1916.

My dear Governor:

I have been engaged in a somewhat vain endeavor to find the ruling
of the Federal Reserve Board mentioned in your letter of October 18th to Mr.
Treman under which the liability of Federal reserve notes is extinguished
when gold is deposited with the agent in place of commercial paper.

I do

not find that this practice was inaugurated by a formal ruling.

As you may remember, on January 5, 1915, Judge Elliott issued a
ruling concerning the correct procedure in the issuing and retiring of Federal reserve notes which contained very many foolish statements of what the law
meant.

A little later you wrote a long letter to the board.criticizing this

ruling and urging that it be not adopted as the position of the board.
On January 8, 1915, the Honorable John Burke wrote us a letter de-

manding445,000 to be sent to him for the 5% Redemption Fund, to which we
-

replied on the 15th that we did not need to send him any more money for his
redemption fund as we only had to keep a 40% reserve against Federal reserve
notes in actual circulation and not offset by gold or lawful money deposited
with the Federal reserve agent, as provided in paragraph 3 of section 16.
As I remember it, prior to this time we had had several discussions
with the staff of the bank as to the proper way of showing our liability on,
and reserves against, Federal reserve notes and everybody had agreed, without

a ruling, that the proper way was to show the liability only on the net
amount outstanding, as above described, and keep our reserves on that basis.



FEDERAL RESERVE BANK OF NEW YORK

2

Benjamin Strong, Esq.,

12/2/16.

On January 17, 1916, the board sent a circular to each Federal reserve agent stating that the operation of the law might conceivably result in
the situation of Federal reserve notes being secured by 100% of silver certificates, which the board considered was not contemplated under the Act.
fore, each Federal reserve Agent was instructed that at least 40.,;

There-

gold must

be held either by the bank or, in the alternative, by the Federal reserve
agent against all outstanding Federal reserve notes, and the agents were instructed to require that a minimum of not less than 40% of deposits made to reduce liability must be in gold or gold certificates.
It seems to me that this order of January 17, 1916, is somewhat inconsistent with the general position that the board and the system as a whole
has taken in that it apparently recognizes the necessity of making the reserve
requirements applicable to the amount of notes for which the liability has been
reduced by depositing gold or lawful money with the agent.
I find that the method of showing the net liability of reserve banks
upon outstanding notes by deducting from the total amount in circulation the

gold and lawful money in hands of Federal reserve agents for redemption of
outstanding notes was begun at least as early as the weekly statement of com-

bined resources and liabilities of the Federal reserve banks at the close of

business December 11, 1914:

This statement is apparently the first weekly

statement published as it is the earliest of which we have a copy in our files.

As you will doubtless remember, I have written various memoranda on
the subject of what is meant by the words "reducing liability" in section 16
in Which I pointed out that there are various liabilities in connection with
outstanding notes which might be reduced by deposits with the Federal reserve
agent, to wit:




Liability to pay the notes when presented,
Liability to maintain a 40% gold reserve,
Liability to maintain a 5% redemption fund, and

ERVE BANK OF NEW YORK

(4)

3

Benjamin Strong, Esq.,

12/2/16.

Liability to pay such tax as might be imposed on
their issue by the Federal Reserve Board.

Under the present practice, it seems to me clear that the liabilities

which have been reduced by making deposits with the agent are Nos. 2, 3 and 4
above, the liability to Day the notes when presented being one which the Feder-

al reserve banks cannot escape under any circumstances.

If our methods of book-

keeping were changed so that all notes issued to the bank by the agent were included in our statement of liabilities and all gold or lawful money deposited
with the agent was included in our assets, then, I believe, the only liability

which would be reduced by making such deposits would be the liability to pay
whatever tax might be imposed by the Federal Reserve Board, as our liability to

maintain a 40% gold reserve and a 5% redemption fund would exist with respect
to all notes outstanding but would be compensated for, as a practical matter,
by our

ability

to count the gold with the agent as part of the gold reserve.

Of course, I agree with you that our position would be much strengthened if it were possible to consider the gold deposited with the agent as
assets of the bank, and I also agree (if this is your view, it certainly being"
mine) that, as a practical matter, in case of the insolvency of a Federal reserve bank it would make absolutely no difference which way our books were kept
so far as the paying off of outstanding Federal reserve notes was concerned.
My view on this is that, even under present conditions, if a bank became bankrupt

and its reserve notes were presented for payment, all its assets would be used
so far as they went (including the assets held by the Federal reserve agent) to
pay off all of the reserve notes outstanding, and I do not believe that the
first notes presented could be handed to the agent for payment in full, leaving
the notes later presented to be paid off in part only by the balance of the insufficient assets of the bank.

Consequently, as a practical matter, whichever way

we kept our books on this question the assets of the bank and the assets held
by the reserve agent would be thrown into a common fund and used first to pay




....,ERAL RESERVE BANK OF NEW YORK

Benjamin strong, Esq.,

4

12/2/16.

Cr off the notes and, subsequently, any other liabilities of the bank.
However, I am not quite clear in my mind whether it would be wise to
try to get the board to authorize a change in the system at the present time in
view of the fact that the amendment was presented to Congress and turned down.
If you think it is wise to try for this change in practice, I think it could be

done by suggesting to the board that the banks be instructed simply to change
their form of bookkeeping so that all outstanding notes would appear as liabilities and all gold and lawful money deposited with the agent as assets temporarily held in custody by the agent.

As a matter of fact, this would require

very little change either in the books of the bank or in the weekly statements
of the board as the figures in question all appear upon those statements in the
in

form they are issued to-day.

In this connection, it is somewhat interesting

to note that the amount of gold and lawful money held by the agents on November
24, 1916, was in excess of the Federal reserve notes in circulation, both as
shown in the reserve banks' statement and as shown in the reserve agents' statement, although the two statements do not contain exactly the same figures.

With respect to the legal questions involved, I am rather inclined to
the view, although I think the solution is filled with doubt, that the gdld or
lawful money deposited with the Federal reserve agent remains the property of
the bank.

There are several indications to this effect in the statuteil as

follows:




(1)

The use of the word "deposit" instead of the word
"transfer" or other synonymous expression,
indicates that title was not intended to pass.

*(2)

The explicit provision that reserve notes so deposited shall not be reissued except upon
compliance with the conditions of an original
,issue would seem to indicate that, without
that provision, the notes might be considered
as owned by or subject to some claim of the
bank.
The absence of any such specific condition concerning the gold or lawful money
deposited has the tendency to indicate that
there may be such a claim or ownership in the
bank.

.ERAL RESERVE BANK OF NEW YORK

(3)

tit'r

0

5

Benjamin Strong, Esq.,

12/2/16.

The fact that the reserve agents must hold the gold
or lawful money exclusively for exchange for
notes offered by the bank indicates that the
bank is the only person that can ultimately
obtain the gold or lawful money so deposited
(except the Treasurer of.the United States,
who may get some of the gold for his redemption
fund).

(4)

It has been suggested that the Federal reserve agent
holds the deposits as trustee for the note
holders, but the fact that no individual note
holder could obtain any part of the deposit
even on presentation to the reserve agent of
Federal reserve notes seems a conclusive answer
to this suggestion.

Of course, the argument on the other side is that the Federal reserve agent is an agent for the Government to protect its liability on notes

and that he has consequently been vested with full legal title to the security
in order to make that protection adequate.

I am sorry that this discussion is not more illuminating, but

possibly it will serve to pass the time away and assist in digesting that
Thanksgiving turkey.
Yours sincerely,

Benjamin Strong, Esq.,
4100 Montview Boulevard,
Denver, Colo.

JFC/PE







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Equitable Building
New York

Dec.

4 (1916)

Dear Gov:

It certainly was good to hear your voice the other evening and thus
obtain aural and oral evidence that you are strong enough to shout 2,000
miles.

I hope it did not overstrain your system.

I have delivered your Spesutia Club share to Mr. Corey and received
a check for $5,000 which I will deposit to tax credit of your account in
The Bankers Trust Co. tomorrow.

We are still sputtering over the Board's proclamation.

The more I

think about it the madder I get, especially at Warburg's attempt to have me
make a futile and ridiculous crawl for him.

I am sorely tempted to give out

the interview just as he wanted, with a few bland remarks of my own to the effect
that any intelligent reader aught to have understood that the Board was not
talking about British or French Treasury Bills, and how stupid it was for
Morgan's to let the Chancellor of the Exchequer and the Minister of Finance
labor under such a queer misapprehension.

As you may easily imagine,more than one half the people I meet think it is
is part of the pro-German propaganda which Hon. Paul has been clever enough to
put over on his confreres.

And I'm almost getting ready to believe it myself

(at least to the extent that no such play would have been made if the positions
of the Allies and the Teutons had been reversed).

I enclose some stuff from the

Evening Post about it.

But I guess we would do well to try to forget the matter, as its bad for
you to get "all het up" over such things.

Call money went to 15% today, closed at 7%, and went back to 15% after the
close.

We did not advance our rates on acceptances and bought $3,800,000, of'

which $1,900,000 are Pehewal credit bills.

Kains says he is under the weather and so cannot attend the Conference.
Isn't it too



bad.

Here is a programme.

Looks like a real week's work this

41,
time, doesn't it?

Jay has gone to Washington today; his doctor being

willing, with Mrs. Jay as watchdog.

But I fear he will over do things

as 2/3 of the senior officers of the Bank are apt to.

If only they could adopt

the dolce far niente of the remaining 1/3, how well off we should all be!




J. H. C.




EQUITABLE BUILDING
NEW YORK

December 5, 1916.

My dear Gov:

I enclose herewith a telegram which came to

you from Andrews & Co. about some stock business which
is similar, except for the name of the company, to one
or two that I have received from them.

It is all a

fake as far as I know, but I am sending it along in

case you are interested in the twenty shares which they

are holding for you out of the oversubscriptiomwith
which they are about to be overwhelmed.
Yours sincerely,

Benjamin Strong, Esq.,
4100 llontview Boulevard,
Denver, Colo.
JFC/PE

diCaLo

Enc.
;(7-2.df-- (?)

Ac-

3STAL TELEGF .,

Link

RECEIVE
E

el

COMMERCIAL CABLES

PY, PRESIDENT

TELEGRAM

, AIN OFFICE

',ST 4 CRANMER BUILDING

^a 17TH STREET

0
.VER. COLO.
TELEPHONE: MAIN 4600

r DELIVERY NO.

ii7
\./

The Post. Telegraph-Cable Company(Incorporated)transmits and delivers this message subject to the terms and conditions printed an the back of this blink
1413--290 R

NENIGN PATENT- NA; 4010

147cbm 21 213p

cb Newyork Dec 7 16

Benjamin Strong

enjamin Strong
41 Hundred Montvier Blvd Denver

Hearty congratulations on approval ef foreign matter of which Jay
has just notified us We assume you will prepare necessary letters.
J F Curtis




POSTAL TELEGRAPH-COMMERCIAL

uo..7,7,741.4 ow
THE GU

T,EST TF.I.

PU AND CARLE SySTE

IN THE WORLD.

EXTENDS OVER TWO-THIRDS

CABLES

OPERATOR'S NOTATIONS,

OF THE WAY AROUND THE EARTH.

COMPANY (INCORPORATED)

THE POSTAL TELEGRAPH-CABLE
Fbli.LOWIttrirttletiviS AN
TELEtaiAmSUIRAVIIYTO THE,
,

CANDITIONS:

back to the originating office for
AN UNREPEATED
telegram shonld order it REI' IATED: that is, telegraphed
indicated on its face, THIS IS follows:
delays, the sender of a
To guard against one-half the nnrepeated telegram rate is charged in addition. Unle4,otherwise telegram and this Company as telegram, beyond the
mistakes or
of the
UNREPEATED
tg agrwiljietween the sender
comparison. For this,
or for non-delivery, of any
REPEATED telegram, beyond
AS SUCH, inelanirlderaido4

TRANSMITS AND DELIVERS THE WITHIN

.

TELEGRAM AND PAID FOR liable for mistakes or delays in the -transmission or delivery,
any
transmission or delivery, or for non-delivery, offrom unavoidable interruption in the
I. The Company shall not be
is any case for delays arising
nor for mistakes or delays in the
amount received for sending the same;the same, UNLESS SPECIALLY VALUED; nor
ter vii,Ling
or for the non-delivery of this
fifty tinsewthacsum,received
OR.NOR EIMRS IN CIPHER OR OBSCURE TELEGRAMS.
for any mistakes or delays In the transmission or delivery,at which amount this telegram, if
telegram rate,
woilting'Of fteii
shall not be liable for damages
fifty times the REPEATED
is offered to the Company for
hereon at the time the telegram
2: In any event the Company
of its servants or otherwise, beyond
telegram, whether caused by the negligence efdned, unless a greater value is stated in writingto one-tenth of one per cent. thereof.
when necessary
sentras, a REkICATEDtelegrain,lerherebyor. agreed to be paid based on such value equal telegram over the lines of any other Company
paid
this
transmission, and' an additimutl Mee the agent of the sender, without liability, to forward
made
greater distance a special charge will be
8. The Company is hereby
free delivery limits of the terminal office. For delivery at a
to reach Its destination.
transmitting offices; and if any
free within the established
42 Messages will be delivered
-and 'accepted at one of its
and any notice or
made to Over the cost di such delivery.
attaches to this Company until the sti.11.,..Kie-Pnetented for the purpose of delivering the message
of the sender
messages
:s. 45,,,responsibility regardingone of this Company's messengers, he acts as the agent
by
in writing within sirty days after the
message 1.73to such office
rding it to the Company's agent in its said office. penalties in any case where the claim is not presented
instructiO

liable for damages or statutory
id The twinpany shall not be
telegram is died with the Company for transmission. upon tile receiver as well as the sender of this telegram,
term. and cot/ditto:is shall be binding
d. The r
AUTHORIZED TO VARY THE FOREGOING.
E N LOYEE OF THIS COMPANY IS
8
CLARENCE H. MACKAY, PRESIDENT.
M.E.RAL MANAGE.
EDWARD REYNOLDS VICE-PREST. A
.CMARLES C. ADAMS.
NT.

,EST TELEGRA




CHARLES P. BRUCK
VICE-PRESIDENT.

4.ICE IN THE WORLD

TIME SENT, Ere.

6

7`o

27/




FEDERAL RESERVE BANK
OF NEW YORK

CONFIDETHAL.

December 3, 1916.

9161 C

3.30

My dear Governor:

I have your telegram of December 7th about foreign arrangements.
Jay tells me to-day by telephone from Atlantic City, where he now is for
a few days, that the situation was that the State Department had decided that

they did not careto consider the matter, so that the board is to go ahead
with it as a purely banking proposition and forget that the other department
was ever consulted.

Kr. Harding told :Ir. Jay that we might go ahead and com-

plete our arrangements, but not to do any business under such arrangements
without farther consultation with the board.

My view of the way to handle it

so far as the other governors is concerned is to tell them individually the
whole story, but not to let them take it up with their boards of directors at
the present time as that would convey the information to about 140 people,
which is a good many for a dark secret.

':;e could then go ahead and complete

arrangements on the underitanding that the Hew York and at least some others
would come in to the actual operations and, after our arrangements had been
completed with our friends abroad, we could then find out from each bank
whether they wanted to share in the operations and, if so, to what extent.
Row does this plan strike you?

Will you please telegraph your views in this

regard to me on Ilonday or Tuesday at the Shoreham.

I have your confidential letter of two or three days ago and note
your feelings about the board's announcement.

It has been very generally

criticized in this part of the world and still is being criticized, there be-




ZRAL RESERVE BANK OF NEW YORK

Benjamin Strong, Esq.,

2

ing three different views entertained as to the cause:
That it is a very skilfully engineered piece of
pro-German propoganda;
That it is a subtle move on Mr. Wilson's part
calculated to make the Allies long for peace
on the ground that they can't get any more
money to continue fighting, and at the same
time to make the Germans think that :Ir. 7i1son would be a good mediator;
(3)

That Davison said something unfortunate to the
board and they decided they would put him in
his place.

I have not yet been able to discover what the true story is, but my
own guess is that the board were afraid people would think that, because Davison
had talked with them before putting the treasury bills on the market, therefore
the board approved of the issue, and that consequently they wanted to indicate
This is in line with their feeling that,

in advance that such was not the case.

because Kent and Hemphill said something in their circular which mentioned the
reserve system, the board must make clear to people that it was not mentioned
with their sanction, etc.

Of course, there is another view to the effect that

there was no ulterior motive behind the announcement, but that the board did not
appreciate what an effect their remarks would have.
To-day we did not have any rediscounting.

Mr. Thrburg called :Jr.

Treman on the telephone and Criticized quite severely the amount of renewal acceptances we have bought recently, which, however, did not seem excessive to us

under the circumstances, especially in view of the fact that we have avoided
taking a good many of the renewals that have been offered to us in the last week.
.e had a very full meeting of the executive committee this afternoon and discussed this whole matter at length.
all acceptances from 2 3/4 to

They decided to raise the basic rate for

and to consolidate the differential on 30 and

60-day bills, so that there will be only twocl-i-f4-e-r-'e+it4a-l-g as far as maturities
go - one ever and one under sixty days.

The committee did not approve of try-

ing to discriminate in any 13444./.'way against renewal bills, but thought that the



a AL RESERVE RANK OF NEW YORK

Benjamin Strong, Esq.,

3

12/8/16.

best way to handle this matter was to continue along about as we had been, not
taking all that were offered but not making any marked discriminations.
Mr. Jay reports that his health is very much better and that he is
feeling very well, but 1ix. Treman and I have some doubt As to whether he should
be left alone at the bank next week.

I expect to go to Atlantic City Sunday

morning and spend the day with him there, so that we may be mutual au courant
with affairs in ITew York and Washington, and I can then decide as to how far

his strength has been recovered.
I understand that Mr. Treman has already written you about the rediscounting so will not repeat any stale news.
Yours as ever,

Benjamin Strong, Esq.,
4100 Montview Boulevard,
Denver, Colo.

JFC/PE




TIESTE47PASN,

UNION

Form 260

WESTERN UNION

6E011,-1 W. E. ATKINS, VICE-PRESIDENT

TEL

RECEIVER'S No.

IL.

AM

NEVVCOMB CARLTON, PRESIDENT

TIME FILED

SEND

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

BELVIDERE BROOKS, VICE-PRESIDENT

CHECK

Washington, U. C., De-c. 11, 1916.

Benjamin Strong,
4100 Montview Boulevard,
Denver, Colo.

Your comrades in conference assembled send you most affectionate
greetings with best wishes for your speedy recovery and return
to our midst.

Aiken, Treman, Rhoads, Seay, Fancher, McCord,

McDougal, Wold, Wells, Miller, Van Zandt.

Kains is also un-

fortunately absent on account of illness.




Curtis.

44011

ALL TELEGRAMS TAKEN BY THIS COMPANY ARE SUBJECT TO THi -flNG

Ms:

To guard against mistakes or delays, the sender of a telegram should order it REPEATED, that is, telegraphed
the originating office
mparison
For this, one-half the unrepeatcd telegram rate is charged in addition. Unless otherwise indicated on its face, THIS
..N -UNREPEATED TELx,stAM AN
PAID FOR AS SUCH, in consideration whereof it is agreed between the sender of the telegram and this Company
follows:
The Company shall not be liable for mistakes or delays in the transmission or delivery, or for non-delivery, of any UNREPEATED telegram, beyond the
amount received for sending the same; nor for mistakes or delays in the transmission or delivery, or for non-delivery, of any REPEATED telegram, beyond fiftytimes
the sum received for sending the same, unless specially valued; nor in any case for delays arising from unavoidable interruption in the working of its l
nor fur
errors in cipher or obscure telegrams.

In any e.-ent the Company shall not be liable for damages for any mistakes or delays in the transmission or delivery, or for the non-delivery.'01 this telegram, whether caused by the -negligence of its servants or otherwise, beyond the sum of FIFTY DOLLARS, at which amount this telegram is hereby valued, unless
a greater value is stated in writinghereon at the time the telegram is offered to the Company for transmission, and an additional sum paid or agreed to be paid based
on such value equal to one-tenth of one per cent. thereof.
The Company is hereby made the agent of the sender, without liability, to forward this telegram over the lines of any other Company when necessary to
reach its destination.
Telegrams will be delivered free within one-half mile of the Company's office in towns of 5,000 population or less, and within one mile of such office in other
cities or towns. Beyond these limits the Company does not undertake to make delivery, but will, without liability, at the sender's request, as his agent and at his
expense, endeavor to contract for him fur such delivery at a reasonable price.
No responsibility attaches to this Company concerning telegrams until the same are accepted at one of its transmitting offices; and if a telegram is sent to
such office by one of the Company's messengers, he acts for that purpose as the agent of the sender.
The Company will n-ot be liable for damages or statutory penalties in any case where the claim is not presented in writing within sixty days after the telegram is filed with the Company for transmission.

THE WESTERN UNION TELEGRAPH COMPANY

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

INCORPORATED

NEWCOMB CARLTON, PRESIDENT

CLASSES OF SERVICE
TELEGRAMS
A full-rate ,expedited service.

NIGHT TELEGRAMS
Accepted up to 2.00 A.M. at reduced rates to be sent during the

night and delivered not earlier than the morning of the next ensuing
business day.
DAY LETTERS
A deferred day service at rates lower than the standard telegram
rates as follows: One and one-half times the standard night letter

rate for the transmission of 50 words or less and one-fifth of the

initial rate for each additional 10 words or less. Subordinate

to the priority of transmission and delivery of regular telegrams.
Must be written in plain English. Code language not permissible.




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

NIGHT LETTERS
Accepted up to midnight for delivery on,the morning of the next

ensuing business day, at rates still lower than standard night telegram
rates, as follows: The standard day rate for 10 words shell be charged
for the transmission of 50 words or less, and one-fifth of such standard
day rate for 10 words shall be charged for each additional 10 words or
less.

Must be written in plain English. Code language not perMail delivery, postage prepaid, permissible.

missible.

FEDERAL RESERVE BANK
OF NEW YORK

Ufr

December 16, 1916.

My dear Gov:

I an writing to give you what the old darkie called a bird's-eye
sceptic view of recent events in Washington touching on and appertaining to
the conference of governors.

Last Sunday I made an early start at about seven o'clock to see Mr.
Jay at Atlantic City on my way to Washington, and by the time I had arrived
there had picked up a real cold so that when we were rolled along the board-

walk we looked like the real thing in invalidism - he with a remnant of a
cough and I with my eyes crying so I could hardly keep them open.

we had a very pleasant chat, after
on to Washington.

However,

which he cane back to New York and I went

His strength is coming back but he is still not really fit

to do a full day's work and so'Doctor"Treman and I have ordered him away from
the bank for at least a week and I believe he is starting,for some place South
to-day or to-morrow.

We had, on the whole, a pretty good conferenceat Washington in
which a good deal more was accomplished than at the one held in Boston last
August.

In the first place, we all went over to meet with the board the first

thing Monday morning where Harding gave us a very cordial reception, outlined
the policy of the board on a number of matters, gave a brief history (very
brief) of the English and French treasury bill matter, and told us what the
board had in mind in the way of amendments to the law to be recommended at this
session of Congress, of which there were twelve.

I see that Mr. Treman wrote

to you yesterday concerning these, but I note a clerical error in his letter on



FEDERAL RESERVE BANK OF NEW YORK

Benjamin Strong, Esq.,

2

12/16/16.

line 2 of page 2, where the words "member bank" should be changed to "Federal reserve bank."

The history of the treasury bill episode was (so far as it was told us)
just what I had anticipated in my last letter to you;

that is, that the board,

having had a talk with Mr. Davison, felt that because of that fact being publicly known they would be presumed to have approved of the plan when it was announced by him a few days later.

Apparently, what happened was that Davison arranged

in advance (through Warburg, I think) to come over and explain his plans to the
board as a matter of courtesy, the initiative ,coming from Davison.

After hav-

ing had the conference at which he explained the plans, they told him they did
not approve of it.

Then he went back to New York and the following day ap-

peared the statement in the

New York Tribune," not purporting to be authorized

by J. P. Morgan & Co., which said that it was proposed to issue a thousand
million of the treasury bills.

This, apparently, terrified

think, telephoned Davison that, if he did not give the matter up, they would
be forced to come out in a public statement against him, with the results as
you know.

Harding told us confidentially that he had seen both the British

and French ambassadors and had assured them that no slight was intended to the
credit of their respective nations, and he thought that things had been much
smoothed over.

He also said he was going to make the same point in a speech

to be delivered at Boston, of which you have already doubtless seem some extracts.

This Boston speech contained about what Mr. Warburg wanted me to

give out in the form of an interview here, and, while I suppose it is a good
idea for the board to try to make matters smoother, still there is no doubt in
my mind that the remarks made in the speech are hypocritical and untrue.

Their

original announcement stating practically in so many words that the British and
French treasury bills would not be paid at maturity, and the result of that an-

3ouncement being a definite marked decline in the market value of all the British and French securities selling in the United States, it seems a little pusil-




FEDERAL RESERVE BANK OF NEW YORK

3

Benjamin Strong, Esq.,

12/16/16.

lanimous for the board to come around after having caused the wreck and say that

0

they did not intend to reflect on the credit of any particular nation at all.
However, I did not have any opportunity to discuss this matter with any members
of the board except at a very brief interview the committee on foreign arrangements, consisting of Treman, Wold, Aiken and myself, had with Governor Harding.

At this interview I told him that seven men out of ten that one met in New York
believed that the announcement of the board was a very clever piece of proGerman propoganda which had been put over his associates by Mr. Warburg and
that I thought the board ought to be advised of what public opinion on this
matter was, irrespective of whether there was any justifidation for it.

In

this connection we pointed out that now was a very good psychological time for
the board to permit us to move at once with respect to the Bank of England

matter to offset the impression created by their announcement, to which Harding
readily assented.

Indeed, he concurred very heartily in this point of view,

so that I think we may get some quick and definite action.

We also told him

and the other members of the board that you as well as the other governors

were opposed to entering into any contract or preparing a piece of machinery
unless we were to be allowed to operate under it at once, and I noticed Hamlin
nod his head sagely in approbation of this view, Harding having already previously told us that he agreed with it provided that we did not undertake
operations on too large a scale at the start.
I told Harding of our correspondence with the Bank of France and said
that we might shortly file an application for permission to appoint that institution our correspondent in Paris, but we had no opportunity of discussing the
merits of this matter.

At the conference we went into executive session and read to the
governors a copy of the memorandum prepared by you with the Governors of the
Bank of England and also gave to each of the governors a_copy of the letter

which you had prepared for them some months ago, with the understanding that



z'

FEDERAL RESERVE BANK OF NEW YORK

4

Benjamin Strong, Esq.,

12/16/16.

they would not take the matter up or divulge it in any way to their boards of
directors or to their executive committees but would consider it themselves and
forward us any suggestions they had to make as to the method of handling the
account, the amounts for.whiich they would probably like to participate, etc.
I think that they were sufficiently impressed with the necessity for confidential
treatment of the subject.

The other matters handled at the conference you will be advised of
when the minutes are completed, which ought to be some time next week.
The principal danger ahead of us lies in the proposal of Governor
Seay to have drafts drawn on one Federal reserve bank immediately available at
any other Federal reserve bank, which, as you know, is a pet hobby of Delano's.
We had a full meeting of the governors with Messrs. Harding and Delano on this
topic at which Harding suggested that the governors appoint a committee of three,

of which Messrs. Seay and Fancher should be two, to thrash this whole matter
out with the board.

As Seay and Fancher were in favor of this scheme, Aiken

with great presence of mind suggested that a committee of three was a little too
small and so we had it increased to five in order to include people of all
shades of thought on the subject.

It was finally left to Seay, Fancher, Treman,

Rhoads and McDougal, which, on the whole, is a very good committee to handle the
matter.

.1 think the net result will probably be that they will authorize the

plan to be put into effect provided the checks have a distinctive color, are

cashable at only one Federal reserve bank, are guaranteed by the reserve bank
on which drawn and are limited to a certain percentage of the capital of the
drawing bank.

Mr. Jay feels that the thing for us to do is to fight to the

last ditch for an advice from the drawee bank before payment, which would, of
course, make the transaction very safe, especially when coupled with the guarantee from the drawee bank.

If you have any thoughts which you would like to

submit on this matter, I know they will be very much welcomed by the committee.
However, this is not an invitation to you to do any more work,as we
are gradually coming to the conclusion that you do too much work and keep in




FEDERAL RESERVE BANK OF NEW YORK

5

Benjamin Strong, Esq.,

12/16/16.

too close touch with the affairs of the bank for your own good.
take this letter as a slight warning that, unless you are prepared to read the

letters that are sent to you from here but not do anything about them, they may
be considerably curtailed.

Verb. sap.

Yours sincerely,

Benjamin Strong, Esq.,
4100 Idontview Boulevard,
Denver, Colo.

JFC/PE

P. S.

Jay starts to-morrow for Augusta to be gone until the first

of the year, which is certainly a very wise move on his part.
P. P. S.
tificates.




I have your letter of December 11th about the stock cer-

Please send 150 blanks, which ought to carry us through a year.

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row
Form 1204

Blue

Nile

tterN L
these

three symbols

ter the check (number of
iis is n day message. Otherhamster is indicated by the

WESTE

CLASS OF SERVICE
Day Message

Day Letter

TEL

wv- 7,,trifOp
Jula411 ,

G 43

NL
If none of these three symbols

.4E4M

Il

TELEPHONED TO
B

NEW YORK 240 PM DEC 27

Nite

Night Letter

AM%

NEWCOM B CAR LTO

Bkie

Night Message

WEST E-RN UNION

,ppearing after the check.

RECEIVER AT

UNION

E

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

symbol appearing after the check.

.

I MI

BENJAMIN STRONG
CARE CHARLES T HE _8, ESTES PARK.

HAVE MADE ARRANGEMENTS

FOR A CONFIDENTIAL

SUGGESTED STOP HAVE REQUESTED GOVERNORS OF

CABLE ABROAD AS
OTHER B ANKS

TO

AS CONFIDENTIAL AND MAKE NO

CONTINUE TO TREAT WHOLE MATTER

STATEMENTS STOP HAVE MADE NO STATEMENT HERE STOP HAVE NOT ADVISED
BOARD OF CABLE ABROAD.
J F CURT I S.
208 PM

Form 1204

Blue

Nile

NI
If none of these three symbols
appears after the check number of
nords)this is a day message. Other'

its char actor is indicated by the

WESTE

UNION

TEL

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AM

RECEIVER AT

Day Letter

Blue

Nile

Night Letter

NL

It none of the a three symbols
appears after tl., check number of
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NEWCOMB CARLTON, PRESIDENT

Sof appearing after the check.

Day Message

Night Message

WESTERN UNION

111.1

CLASS OF SERVICE SYMBOL

wise its character is indicated by the

symbol appearing after the check.

TELE:2:D TO

14 D G 110 BLUE SUB TO CORR'N.
Q
BY-NEW YORK NY 6 PM DEC 28
-TIM
'BENJAMIN STRONG,
CARE CHARLES HEWES, ESTES PARK
,FOLLOWING CABLE RECEIVED FROM ABROAD
QUOTE THE GOVERNOR SURMISED
EXACTLY WHAT HAD HAPPENED AND
WAS IN NO WAY PUT
OUT
BY THE PREMATURE ANNOUNCEMENT NOR
DOES HE CONSIDER THAT IT
NEEDS INTER4FERE WITH THE CONTINUANCE
OF DISCUSSION AS TO THE
TERMS EVENTUALLY TO BE SUBMITTED
TO THE RESPECTIVE BOARDS BUT
HE THINKS IT WOULD NOW
BE BEST.NEITHER TO CONTRADICT
THE ANNOUNCEMENT NOR TO CONFIRM
OR EXPLAIN IT BUT TO
LET THE MATTER REST EXACTLY
AS IT IS FOR THE
PRESENT QUOTE WE HAVE NOT
MENTIONED
THESE CABLES TO THE
BOARD STOP THINK BEST NOT
TO ACT ON FRENCH MATTER
FOR A FEW DAYS STOP
WILL SEND FORMAL PROTEST TO BOARD
SHORTLY.
J F CURTIS.




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