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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 to enter into your personal affairs In order to accept our invitayoon 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 you and Mr. at the office. The impression I get from atfar from being Hendricks say about the collection matter ii 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 performed. I brought with me some aigrs, çvhich I am permitted to 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 will send me a cops' of whatever is sent to Washington, I you will very grateful. 'Then it goes to 4ashington I think thebesuggestion 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 one little ountry bank If they were foxy, they weal' get a to bring the action. that charged a very modest the odium that is al./O1asand Mississippi will be liable\t outhern fraternity, Who charge ready enjoyed by some of the' 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 By about and keeps the streams filled. us cool down here lower levels are snow storms August 20th these rains on the little snow falls from up dm tne peaks and from then on n 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: sold itself. I have The enclosed letter explains and I am Weston for 000.00, the Triton Club stock to Mr. draw the drafA, attach the L!oing,to ask you if you will Co., 44kers Trust it in thethOproceeds certificate to it and deposit when ,lith request to advise o of credit of collected. I I is endorsed in m(f2IFITtdx certificate in The stock r. 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 and am h last evening, received yours 0 time to the ing necessary however, glad to learn that you are ft is not, ock. Dational Ba I to help you myself, lab a one man job an0 benefit th for his own n, strongly raceme 4 d, as I am afraid he is working and for my own tpace of m too hard. set-backs that you refer to, expo them, as I much opportunity fororders e not yet but most the doctor's am &SUE nothiwr and followinghardest de of medicine I It is the aling is not in my line. consO entiousl-. however, for 1. ( have er take. ;A0.00, evidencingis closinE a check for military training simply my belief that compulsory require& for If the amount country. necessary in this completed, again and I will write me the league is not increase this subscription. should be of this sort The support of an enterprise promote inin order to possiblecontributed 400,000, it as widely distributed Ifasone man terest in the work. as having satisfactory in results would not be nearly as I will be glad to At any rate, 1000 men contribute 400. others know if a larger and let me go along with you e..nd the amount is needed. _- better-half that I am very much klease tell yourpuzzles and hope that she will favor interested in picture deal of interest your me with one. I await with a good 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 for extension that little country bank the same opportunity 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 ctexvi elOi. cuz_tt. *-wto iatzdt, alikek kLikex7 re, , total n; au"- Wee-0-- sitaxlc lad't Gme, ace_ t91- apece.a..-1 7n. Kt_ tocubti ctazub. , &et& AtikYlt-itatak-e. rfome_ 41-arircuk_f 4Ricoc.,-4 6 bYte-p.cr, dims: attiho-tric rciw. cat, (./4 tifetsua 4if pAtizczt.t, dx; Sau-ti /Ac '7N-e 4J met re it ( pah.`'e awryriff Ak-e-ei, wect.e.4C, ot , fry- F11- .771,e,y) c . 7i dui etL .44e1744- Can-i.FruA44,a61 Coanct,et " 1771.1"taftl7 11,e ?kJ q aza o-a)7 (6- CO-Pte-ter-it ictie atti3 . 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Aal 7_ 01.fe olt- /Ap d . fi ThlettiP rce-A tau; Coich )6tevra-v_ data as.,r- Roatat 47,0;0 ,190,i-D talci rs, 2 Atte Co-e-itticet- 021.0-0 auxif-R.ei eo-fact; aice t43 771-1, rdvim_ticA 44lLe4----6C oval, Aze-ix 6Usluasi 201_1 9ov-71s , OL4-ata:e. frac-it 'Lew, at4-4; tutwA,' Co-ta-Lp , 4 'A Ztv; ecu, ttatic VIA 6-$ tofd-Akocia,,. ce,y, dcpu.t.e, /AA' /6-7-14 - 43- *tar afie9-1 - 01011.e4) 1(10a9iLt,; Calteft9 &fort tki 4,C (Dead 6v at, x ahuctil-c, , 6A: faec-/ 68--co-cott wad; /kw Sigu:s cuti otte otha 4,akino9;0- ccatstra.t.e-9 0-603>few ficti a_ y,er.o ,2ke &Au, loca gat.44 ealeiciA, ,o-110-1 fitt_ BENJAMIN STRCOG 041i0 IV) (3-5 t di) 0 Ivy kandfiricf) eria9u.a.4 `71../9 itcur erikuI1 fickafci ctc14 , - tbi . amtat °List-CC fkE Iktio Taaftv,7 lath? cficatL, 619-Pcfri4a4vi4- la 414; atwa celtt-t.o 'PlaA) dee tA&Li t&L,P-itzult Ciel7C1 (Lai- 4: /kW clugir di/rnarva, 41'efinettfr, itclati-itus or----neet aurvativ-F. ft t9- 6104744:- 6,0 diati fkk ---to-fat)620Lce-rt,, cetariA,LF,64,, et-it4 a,49_,exc) (114Q/&_061-1.8efc-17: -r ift,(;) incti/fA 130-a/ciA. auldoektu_ce, tft extztx 4cL - 691kattAfee MAI Atia.64t; 207 --/k- 091--; 6,ct alaattA (teutttuctek 4#7k_d-o-Gt kt_ c;S /IT; cti4 ettRid-cem: d), tigt_AQ)71_arat,u4 eirctite /42_ Co-a.o 0 7t04, -nteut, â `71CLO;fettcc.'(At_e et-ra-ta- Cti.eAtur): Aki.,/oRkA_ 6k1-42124 tow' c1v7. 60_ 72Lc_ S4-r-oicik , 11- 5004--for&-17PustA 6chkeit ekrir-r-t /AV_ AVAilk,sr c9-kkt/D-k cto dtkattb z0tLe fctAt 4-e-r1-2)-11-q) rrm bVPIA/ 74--e ciT71 No---rrio ' trYlotta-e-fm? i(3,0-1714. :41160 c-rn-vy/ 01-07 'tb'jtr rnitti 4-r-r?"4 °--14"fY-e-vri2 -r/213 Yr*/1W .tirr -)fit -ril02,/ a-Arg :-r1) -43/, m--T4-°; es) 'P41-Q-01) ?7(r/XV -naluento c'rfv122-0) -n71(D`P-ITa '°-13"a 3-0770).or -rmay 71.11 (A_0-9-ime--Irb-eyw - --ostfvp 1,Pyrri 1739 _ i---e/)? 'L,r-ry4,36-ra-r_za - (4--rin4 it(74--rwx/itz) 1r'!-rnairryvii x?Tc-v-eAserallt, carrny a-y-eA2 s" -aa-afg)--VgTho .17041gb Vin-01) 647r 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/// g od many differeWE-times, and so completely and explic-. 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 On the other hand, this 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 Jay expreseing what views I have about 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 bempiressed 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 1Nior 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' regular telegrams. 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. 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. 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 ADDRESS Digitized SENDER'S 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 for the transmission of 50 words,or less, anctone-filth of such standard day rate for 10 words shall be charged for each addit;onal 10 words or less. Must be written in plain English. Code language not permissible. Mail delivery, postage prepaidpermissible: 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. As to the Board's 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 to sea that more of the United States 3s had 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 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 months ench credit importers, every dol- purchase of American prod- lar of Which will be app ucts which we f two foreign ders that the Board balks countries, and when one fur at an 18 the Clayton Act. 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; 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 va uee is 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 to be pa 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 nec, reach its destination. Telegrams will be delivered free within one-half mile of the Companyis take in %twits dr 5,1)00 population or less, and within one mile of such office 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 a. 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 aftergram is Sled with the Company for transmission. THE WESTERN UNION TELEGRAPH CC IV! No employee of the Company is authorised to vary the foregoing. IN 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 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 DAY LETTERS 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 to the priority of transmission and delivery of regular telegrams. 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 One difficult cumulati matter to 10 %, of rates, it would seem to be course so far as I can the pro sterday as from 6 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 -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 not co ect anyway. . ency this lie the Federal Federal +ions of tion to redcem a practical include the plan of accounting which the As an accounting matter, the plan is in support o sired to adopt rect obi 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, forget t tion is fficiently important to jus- but nizations. I h ve already telegraphed you about. Don't t if the matt 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 WESTERN UNION Nite 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 CLASS OF SERVICE SYMBOL Day Message Day Letter Blue Night Message 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: " '..r it REPEATED, that is, telegraphed back to the originating off' .ITcomparisr -take, .lays. the-' .1 night h. To gm,: LETTI ,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 T] ne amount r !ifty t .,,ion or delivery, or for non-delivery, of any UNREPEATED ansmission or delivery, or for non-delivery, of any REPEATED r d, Inv. 21: ti 11 1:011 cm 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 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 ich you have full 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. words shall be charged for each additional ten (10) words or less. To guard against mistakes or delays, the sender of a day letter should order it REPEATED, that is, telegraphed back to the originating of1,.. For this, one-half the unrepcated day letter rate is charged in addition. Unless otherwise indicated on its face, THIS IS AN UNREPEATED AND PAID FOR AS SUCH, in consideration whereof it is agreed between the sender of the day letter and this Company as follows: The Company shall not be liable for mistakes or delays in the transmission or delivery, or for non-delivery, of any UNREPEATED 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 times the sum received for sending the same, unless specially valued; ner in any case for delays arising from unavoidable interruption in the working of 4 nor for errors in obscure day letters. 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 letter, whether caused by the negligence of its servants or otherwise, beyond the sum of FIFTY DOLLARS, at which amount this day letter is hem unless a greater value is stated in writing hereon at the time the day letter is offered to the Company for transmission, and an additional sur "1 or ag, 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 day letter over the lines of any other Comptwy when necee to reach its destination. Day Letters will be delivered free within one-half mile of the Company's office in towns of 5,000 population or less, and within one mile of such 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 ages at his expense, endeavor to contract for him for such delivery at a reasonable price. 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 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 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 discharge of the obligation of the Telegraph Company to deliver. This DAY LETTER is received subject to the express understanding and agreement that the Company does not undertake that a DAY LETT 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 tothe condition that there 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 tram, sion of regular telegrams under the conditions named above. 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 hS 5%277.J.77,N NOT I:4 ROOM 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' CALL PLEASE BRING THIS NOTICE f0 THE 7ELEPHONE TOTO 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. ;24 fif 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 53 CHESTNUT STREET Ii 7(0/a( (rr- 7C:ri J^-C/i7z a/iAX/1--,k_ C(jejL re2(eA ArL---C , dze_ tcov, 11,A. alca 71L,_ 7'0 c%4A)--v---lz /L% w-c<_6( c)e Af774 a fe4 4_ -4 8-zL. )eu/.,,J( fr7P,,,--74/ .1 z_7 ie-A- Zce, Arr_e-c 4,-acc( 4-716-1 77-y 1(,(7 ec.tyy- 44-e e,....44 ikt szaz117- fc,-, A j- gt70.4 4r4t-i et-ze,4 Li e, C CiL24-7,,,_,64 -7t ze,/e,d,--/6( 74, 4 e" 1E652B 23 CNT PUNCT SF TD BOSTON MASS 30 RECEIVED AT 195 B'WAY NEW YORK PIERRE JAY ESO- 1552 27 PINE ST NEW YORK WILL COME IF YOU DESIRE MONDAY THOUGH INCONVENIENT'FOR ME. C RECEIVED AT WOULD IT BE POSSIBLE TO DISCUSS MATTER BY TELEPHONE OR LETTER? 195 B'WAY NEW YORK 'ECEIVED Digitized3'for FRASER WAY 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 ifs-4 Jr limckWeA._ AC1-1 4.u_ AC a, :1/47, Az.-.4rt 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: For the purpose of enabling the mints 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 ooe aloO apnoc 03- raaeoa.ox xeq ,-± 1 sealt ooe et fr./a/mate aaoli4AA 0i aAT Iftw ha+aa to ,rfah 0a: latifw I* 3ollz 06: sa 444SOTY ;gatwollot ad: :a evilis isw .looftoa at rtf,:0 (ols II /o tnairitoe) .1)(4S t 0Q biabruo aioiT.ml .40 1 I oa.80 swat(.a.C.aTt to taaIlvir,-) 1 . I: am rase -L /#41110 4).Coo* 3ati/s1,:, 1 . VT330C1 . SVOSV,. . myna' - # . ,L . 1(401 Valdie.au . . :4401101 10 :Y.4 ql flobnol " " " IT oclo oo\o 11 ,4510! . ToAd- A et) J . - . . . . -Tiff r 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 Charge. Base contents. Charge. Thousandths. 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 DOSORIS LANE GLEN COVE LONG ISLAND GLE,: . L.VE 659-W Ccit. 1/4 t, -TA ?fri-,(1 k-C24 Oto (7-}- aPJ 7:; uttte t 2 CATT:1-77-, Lae- . tri-k _-9erz Y-2-7 ?7V c-2 5;72/ 777sAi ).rw )7-Lix7 )fr'( 7 "YeL29 /r---,7 "Cr 0 J rti 74-- /1J( Aeer.,11. /46t,ix 7<- "ferx tek_ -te; 'et 7; k GLEI. Lait72 trE-- c_tt 11--t ai CC crt,)c _ rt- rsic,AtLc & t ?z-.144 !IL 0-zA C 4--7 J. 7Lotk V 44t4y,& DOSORIS LANE GLEN COVE V LONG ISLAND ky 101-?&.. /E 659-W Arja sal.au "Ar G,T5-et_ A_<_t itc_k, ha-e..1 p-cA e) ,0 7s& 1-3--`v aftAo. lOta-A-',4414t e ac2f 3, e EZ.---,t-o (c,(. 14-z th.4-1c-. 0-i4A- &,--1.-W-(A_ ct-, />---e-e ILLY wt dee 74 OL /1- Aji, -e Z-41 4'2 AC., 7tA, k3% C.o7-CA-Geap._ / a-- aA- cd 37 kc.,_/ &c,<<pi.t 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 ell the truth I never fully realized how firm To makes. a gap in my life your absence part of my affections you have succeeded in ensnaring. (over) http://fraser.stlouisfed.org/ a grip or how large a Federal Reserve Bank of St. Louis Rahter snit to get so dependant upon another soul, don't you think? Yours ever J'F'C X, 'ActLat t If . urcee 44. tStfaLa o-) 11 , LONG ISLAND tt. fr"- DOSORIS LANE GLEN COVE GLEOVE #Q1.' 659-W - 1011.$ ric-a/LAcr-Y-:)1( ne, ae4.45",.;f- -to 6 "e tri . td- -1.3c,!t 24-&,-g, :st - - 7444;40' fiss4--e- .1?) /1*-51: 1-91, Z.*+. 11 etewt Q0 htftt ift-Z.A, it- hz, iftt.,j 1.11Licw 0E ra,- (44. 7.7!' ;dm, 1' tcrzt-4._ e'- aL t2A,?t et. Gie X.41174rel cA . ii., dp ?tri-A-v,), t. Cut. V,. SS Se- ef. 41- - fca,s_ 7 5. ce,A 13 1/4 C. U ektA: ZLktn e.&,aJtdzgcee raotA;,. ar,:giet isksi j' thrifj 014 td; 80,40e. Arv;.;(-1711r-tk MOO; 4......o4t4. itru-crv "lfs:f 9 L.,a. fckotur I/1 Amok t e-4 Nr--t UPI AI, ftr7. atk aiLc_ row (h17 efitA4-e)li ° C&L"'t LY-11 4 na,A, &A)/ 7 Lt t< 2kt. 774 rtc-t-d-z-2tfv--v t,, /-6&_ c )( l&t7 L1 ,At 0...44 1/7n 7 S 'Lera,* aL,r,& 1ft_ iria -- RA:N..1' 163-t,e_k_ t 1&, crIAL ;s ehtH DOSORIS LANE GLEN COVE LONG ISLAND 4.4vE elLa77_ Gr17'k, 42-6 711,..40L 6-41 ta:1 111/1- 6to _von", _%7- erwv ?-1 - 11. 111) - frff-r_ ekizia4,7t.cet.. /..:-eA_ -A frtAM er-C-tiz 4)-° trr-VV- VYLJP Cte,a ! AIA.Ar/4-s -r- "At tAce,14.-1, -t' Sw-C& i-Aft- dru-a_4 ,fu. J-1E-tL-Fx 9)un-e4 tattc._ c 41- L14-4A-t_ DA- . ltrto ori, 641, -ft, 4, ,C4_ 1:f . t_e_ 615" - all 1 ittwYtt- e27`14__ -t; 6, 7t- IL a_ 7i7 A-a-rtvv, J47 61-0 ç4C4 P- tn. 4 -t_ I , 1,s PAAA r-ftyot 'LAO 4_ 11,_..Y To- 1--- aart 4,44-D truet.4&_ 7 iltoetgair d-krw. 2 72_ rhjek:,, (rt.)f t*A.Cta.---1 E.. 4-1611-'-'17; 1 LAI V (Ai 17/ 7%..L4 .1 1- Gart:TA (trIttA.t al-1- Art ;4-t.0 It-4 I IL-at7/ th_..4, 1-64-44,- c /..:,...e.L. t 471 e', ° ct_f ft-4-4.c( 7L. ana, otte:_r &da1 : tet"1 z;a e t00% loga Lfz.t4 4 erk 0 0 og Oa ciotto /0010 0 /52. th'utl 4. 11,6 ?". re -t. /3 a 0.te 4-s9t- "ic., c,-7( 144-dc Tom &Z roz-44, R4:41 t 41/ t_ 10-4 11/ SI"'" 41 e-10T-1-444 th ?Wait tt- a-1` Vr/` ur:te frit a-QL:0-4-k eL-Y lo 7.rof Doe 1,.."-e.,v 0,646, t. 4- 1)td..,, 2;14. (.1-t aia---.4-714-17tz"-.-- /Ill' CLA-c es-Mck5t try- if 7; !MC Let 7"-4161<-°0 I; At EA. A-0-"teA00 Cf...--ct_ . (.44- 6-e-t--- of tt t 0414 elow Efir,r- zi-c& orte-.4. 4164_, ;5'1 &Lt.-, " 714-al*, to.-4 qr,, 10 pr. e/17 /Ctt:c 7yu..11 aLlytrno h. lc; i DCSORIS LANE GLEN COVE LONG ISLAND GLE,LJVE )10-4 ht-clet Lt1 2 c-eJfLk e, 1110. Ft;-01e- z 1; ktr_A: Aa- LIcaCA:. b"-a-t .411 41 4- 44.4.11 chd< fite ' cr.,/ K.-/(_. JaZ it-14 1/4 C- 02-c-r-C L 7e-r, -a( /AP*14 74, 21,_ d;A /IL 0 P---A 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. In this connectionl please note Mt. Carraway's remarks concerning the possibility of cancelation. 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 e/7/e-r_ G(7 x z 1 I 4, IL, 4F-1-2q 7,4x 7f-e- / /'14 /e0 (34 -1/ YYri, a"? .A1/ )0'3e _ ).4-2-/-, NK) --Y'?7---1 73V- JAMES FREEMAN CURTIS TELEPHONE MAIN 4235 COUNSELLOR AT LAW 53 STATE STREET ROOM 905 adiffee BOSTON, MASSACHUSETTS /1-wct, X_ ((-(, /dr zet-r5 &t4 e_ 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 -2s4 6v. e/Z04, Ar7)../ ti4( tA-r?e 1;x A/6( 7Coe e_ c(9-0 %/e-4/tC,CA. 74- J d7-eA- der211-1 01'42'1 41Fer-e-t_ APz1' (Q34-3X Ar5_ di A i-7,Ac '/L 7&4L:4 cLo op- oz -11 A-444 Ltd d ek,_ )1-- A- a Ai-itA4.,. tt,"( 'X- 4 FEDERAL RESERVE BANK OF NEW YORK Wzro- 1-t-i(ci, dA,L 7L;, 62-c-c le 4A-- a&uk_ (1 12 ktk- 2 1C/l4 t1;, . et:t, a/64'717-2j 4/4 (---cif /LeJ/ bifo p-tet_ . (3. hrL4f AOtO IAC:e C56"C 41-7iL/ '97-1C 7Lej 4i:4(41/06eiiC ets4),Le, ?4/ 7%4- A,Zy4 AL,f4 ,s4=-éLJ -7 /1:14-----4 /1.4t't_ (eLIC (7 /Ittl'' frc/1( 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 Insert Justizrat 3(9 FEDERAL RESERVE BANK OF NEW YORK /4k 4 Ac7(9-0--)g-A A-Vic-s/ A4-eLeee_,.7-0 Ve/o__< 44-t( t°--pLe-754i--( 0.2e 767:4( dt,t__", 73 4t ee-ef-e_e77*4, caet-t,--%/ 4t-c-oc s it_t_ d2-L-1-X 4 zt,4 tz, x frz, ic-cf.S/ A-L I. 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' 836PM 0,1 l,. woo Form ancheettr b t4e Alazsztchuod Seio 9 % 1345, itrifAL'# L7 ii etr,4! 63-4,..- JtiitA.4",( 4-cet tre 14-- do erv t4Z. s cP-/ 'At 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) 4(Afid XIC:&c,c ;A*d/( 4 7"c // aAg-i-( Form 1204 CLASS OF SERVICE SYMBOL - Letter Blue Night Message Nite Night Letter NL 1. inn of these three symbols a, at s after the check number of words)th is is a day message. Otherwise its character is indicated by tho UNION WESTE3, ,, Message TEL 0- SNA WESTERN UNION NOW :7 Am NEWCOMB CARLTON. PRESIDENT symbol appearing after the check. CLASS OF SERVICE SYMBOL Day Message Day Letter Blue Night Message N ite NL If none of bum', three symbols Night Letter appears after the check number of words)this is a day message. Otherwise its character is indicated bythe symbol appearing after the check. RECEIVED AT 9D R 33N.L. US WASHINGTON DC AUG 29TH 1916, BENJAMIN STRONG THE LEWISTON ESTESPARK CO 0 BOARD HAS UNANIMOUSLY APPROVED FO OF OTHER DEPARTMENT RELATIVE TO ,THAT NO ACTUAL TRANSACTIONS FURTHER APPROVAL OF BOARD IGN ARRANGEMENTS SUBJECT TO APPROVAL INTERNATIONAL COMPLICATIONS PROVIDED HALL BE XXX UNDERTAKEN WITHOUT NGRATULATIONS ON FIRST STEP J F CURTIS 840AM AUG 30 )t 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 one dictating a 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 a 44V4-C- (4.4t 4-73441f-c, /2c:e< 674/76( 7472- 44rA, C. 4./e-0 oe4-c---- 7,It /14-7v, A_ / 744' 484 4.6°'- h.sE 6<re- 3 4o-t;ec-g7 3/(2 A 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 LOCUST VALLEY, LONG ISLAND laN 4 se, COVE, 740 PIPING ROCK CLUB /t9i, 4 4? dc (-6 /o/7-- 72 C_ e.-eee-4) 137A )21, V 6'4 d7J-1,C Cty et 72 c (3- 6--0 ( tr oziL < "`- c>7 6/1( L tC Al/ er -(f / (4" frAX/ C f_f 00- (r-L:c L r zZA__ e 1,_1 z , et../1 7 et srl"- A/ tr 77-1-4-2 .22 z(-0 e //-<- 1--,/ /r4 e/ ii 4:4740:_ L 71, Ab' /E-et°2 (.. /I- t_ 1-- ( 4 7/;:: 4-e 4-131- A-C -t -X tz_ < r_ -X cs-L,Y dd.- (co deecc 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) 2 4_ 4 74L-#7',eev( 14, a if) o 4 q. k,,---e-6c .s krt; /0 L-0 pa -11Z& LI, ?ft,,?4 d., 4 77-t ),_.4( + /3_Ii 7L.,. , ;s 1( 'P-4LV iY7J-5, 114 1 "A"47/ ?L4,1 Le--,e_ , C6--k /----)e-- 1,4 ,t_ - \,cl,I, i I A lr' /1 (., /,/ o a -"-A---, °'--, r"- - PaA-,:_? d,,,, IL t I l-t_,7`, 't 4,2`,:_f -1_1> A_ ' - co-7-,1,7, i, La-,- ,__, ) (--,-14 0,-7f E-dc-4_ (ie---,--e, , . ,x 7`4,_ 6) -,,k./et__ etZ-4- --(.-y7-----/---e------,- L/74 --C4C X, ,L.,-(Z c_,,/ /1,, ,,L.7. '1) 1 tt,-,. Ce4,, ,50 41'.-4----7- 4-, %k\ 1 r''Aj-44C-4 i i-z-.--4--.---,_.,,e 74i-,.. 4,,,,,-4 . 71-- /1'''-'-`:e'S -7L ltr2' 1 4,-/l471.4-e -4-0,_ ---4;/-t( e q -I- c ir- 4.--6/,,,e ez-1( 4 ,- _ , Ac- d, p,.. - -.,7-,--0 7-- 717,--c-, ,4- 4_e_c_e-L,C ,4-0 C-.,47,-<-- , L__. \I ,-, 7 :___7, -10-0. 6,4,56-,--if. -74.-:ezu ik js /--<--,-/--L<_ 1,- . ; Ar-,-,- V-- 77-/'-`1-7° --,k_ /44__ i_____-4 ,L-------c__ 4r- ./,---0--(0-4--&- -...--_-= tv-eL, d-,,-4-y_e_ a i U L,_)e 1,-,-,-2,,, -,-4 ..si 7*L.-..__4 I, ---t_-eec.L_,f e,-,J d-r-i)( ri ex-77,.--- --7 7 4-4/ -,? 4-----?: tcJ A fri-L-e), -N1 i.; (,,/, ,a /,-:, /-, . °Z, tiyo,( - , c, L"--.a-e4-4,,r., eL Al-- a--- c 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 CLASS ( Blue 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 the 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 EQUITABLE BUILDING NEW YORK rzr e ede, 1/A-( t:// 74--c e,4( fi/Ift k-vis 7() /Tv (?6,J( Azz,d`z d 6-t_ /1'7- c-cf_'-</ Q2'"2L( /( //(,4_ id /,,,t .1 z,,,_ _ 7/__-, K x -----7 .2,-y (y 4_,_, V /,------/ 47127-, Y------X-_, / 7(,__( 2 /-,?__, ---/ ,,- c c \ki)\' --k V a //- e/' 4x '/ (',ee 7R., 1, L c >e-- 10 - e/ 4, e & ,___X ,,,,,---,-e-,{ -,,,,:, ,t_ - --0--.---- , 7,---(._ XI- /*S-- 1.-c 2 4- -,---, ty .5,ede,,,a. 4 fr //(_-_:_ -g'-z,_}--,-,-7----<-1-77/--5-z_, 1. /.±-( 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 REI' IATED: that is, telegraphed its face, THIS IS AN UNREPEATED telegram shonld order it on indicated delays, the sender of a Company as follows: To guard against mistakesthe or nnrepeated telegram rate is charged in addition. Unle4,otherwise UNREPEATED telegram, beyond the tg agrwiljietween the sender of the telegram and this comparison. For this, one-half AS or for non-delivery, of any REPEATED telegram, beyond SUCH, inelanirlderaido4 TRANSMITS AND DELIVERS THE WITHIN . or delivery, TELEGRAM AND PAID FOR liable for mistakes or delays in the -transmission any interruption in the or for non-delivery, offrom not be unavoidable mistakes or delays in the transmission or delivery, I. The Company shall sending the same; nor for SPECIALLY VALUED; nor is any case for delays arising amount received for non-delivery of this ter vii,Ling the same, UNLESS or for the TELEGRAMS. fifty tinsewthacsum,received or delivery, this telegram, if OR.NOR EIMRS IN CIPHER OR OBSCURE for any mistakes or delays In the transmission telegram rate, at which amount woilting'Of fteii shall not be liable for damages is offered to the Company for beyond fifty times the REPEATED hereon at the time the telegram 2: In any event the Company of its servants or otherwise, telegram, whether caused by the negligence efdned, unless a greater value is stated in writingto one-tenth of one per cent. thereof. when necessary based on such value equal sentras, a REkICATEDtelegrain,lerhereby this telegram over the lines of any other Company Mee paid or. agreed to be paid transmission, and' an additimutlmade without liability, to forward the agent of the sender, 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 until the sti.11.,..Kie-Pnetented of delivering the message and any notice or made to Over the cost di such delivery. attaches to this Company of the sender for the purpose messengers, he acts as the agent :s. 45,,,responsibility regarding messages in writing within sirty days after the message 1.73to such office by one of this Company's in its said office. rding it to the Company's agent penalties in any case where the claim is not presented instructiO liable for damages or statutory id The twinpany shall not be the sender of this telegram, telegram is died with the Company for transmission. upon tile receiver as well as 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 the board who, I 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., too close touch with the affairs of the bank for your own good. 12/16/16. So you may 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. *..vir,r4,- ,J) C- EQUITABLE BUILDING I tit,4 [..-e_icf (I; NEW YORK 1)1 ' aA 4 AJ, c, (4/ 4- e( f:? tv-eAx f/472-e-pef -/6 4' 74-(leA V71-14,-1/C ttr-rk-66/t ad( aPW0 t(--d( AL- 1,4,L /' V4,(_ / 4_7 .0c/711-E_ a d*--t 0 pr--t--CA----- a.---4:-..-12 t/t77 4.7-zW Al"a.- (--e< 2 74{1E - OL-t 4-(--/e(p---1._ 1 -,-,.---t,-.----17A-- _ 74e-/d7C 41- cW-LIf: (lk la AL_ 4_,6( /4/, - A_Lej e L d 2 Li/ ' C err e 71, 14, (t, , t*. 74~,-k }(4,..,-,)/ Any) to-Le,,c r7 e+)--14 /Kt) frc P 9- 2 EQUITABLE BUIMNI NEW YOR JAN 3 (2' /1c,(97,--e fifr ,Z /tpt-ce-,i 63/ /.5 )4(-,c)( e/1( C) eL 4 A J? Ck_ 4 e_c L 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 TEL wv- 7,,trifOp Jula411 , G 43 Bkie Night Message Nite NL If none of these three symbols .4E4M Il TELEPHONED TO B NEW YORK 240 PM DEC 27 Day Letter Night Letter AM% NEWCOM B CAR LTO SYMBOL Day 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 WESTERN UNION TEL 111.1 zxre.- AM RECEIVER AT Day Message Day Letter Blue Night Message Nile Night Letter NL It none of the a three symbols appears after tl., check number of words)this Ise day message. Other- NEWCOMB CARLTON, PRESIDENT Sof appearing after the check. 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. - 525PM. (c, r)) EQUITABLE BUILDING NEW YORK 4?-111--1, < " / -L-Ase LO / _ Cy/4z( OZZ. -"- 217c. ' Jo-4y ee, ( a- 71-.L., X- 7E0'1 c4-tr- A WO-c 4 - /2 11-214(7- Of 7/Z4 A-6L-d4 7e_ (2/ 2 q 4 rt/t( 4_ </Le / Ii( Z 7 // z '-i< t---,f(c,_ EAx 7e--)( a- 2k, e X 7tj, 7 z (Qr 4,e4R,-0 -76 e / 4;' oC,4A7A-1 k/-)W 4-jz r -