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Misc. 4
office Correspondence
FEDERAL RESERVE
BANK OF NEW YORK
Date Sept. 18,1919
Subject.
File s
To
J.E.Crane
From
Limu-DEPT
CT7' 7
9WI %N.
1910
With reference to Gpvernor Strone;'s request in his cttleram No. 22, to
P-"-
arrange with the Treasury to facilitate his landing.,
I spoke to TAr.Kelley on
the subject, and after taking it up with Assistant Secretary Rowe he informed
me that Dr. Rowe had promised to write to the
York to facilitate the
Governor's
landing.
aA.-A
*1
qf lq I (q
Collector of
A
Customs at New
FEDERAL RESERVE
MISC 4
BANK OF NEW YORK
Date October 24, 1919
C 7ICE CORRESPONDENCE
FtLENo bErioT
Mr. J. E. Crane
Subject:
To_
OG
Mr. Geo. Beyer
F
.fro
1919
FELIta RE6ERVE BAriK
A
Please note that there has been deposited with the Bank of England for
the credit of
the Federal
Regerve Bank the sum of X160, 12 s. being refund of
passage money paid by Mr. Strong on account of accommodation reserved on
the
"Baltic" Sept. 19th, which he cancelled.
Messrs. Morgan, Grenfell & Co. were requested to collect this money
for Mr. Strong and
to deposit
it with the Bank of England o1the credit of the
Federal Reserve Bank.
Under date of October 9th, Morgan& Grenfell & Co. advise that
the money was collected and
deposited as
requested.
NT:sc. 4
C"fice Correspondence
To-
r. George Beyer
F7DERALRESERVE
BANKOFNEWYORK
Date
t.)etc:4)er 29, 1919
Subject.
-/
From
J. E. Care
With reference to the attached correspondence, kindly note that we
have today credited current expense account, GovernonStrong's European trip
with the equivalent of the amount deLosited by Morgan, Grenfelli& Co. with the
bank of nnand for our credit L160.12.0 at G4.16
1/2
G668.90.
-0-
OFFICE CORRESPO
To
FROM
VE BANK
W YORK
FEDERAL RES
MISC 3. 1.501,3.23
OF
CE
DATE_iiPtamber 25+
SUBJECT:
_Mr- Case
laS5
_Java Bank
J _E. Crane.
Mr. Storm, Secretary of the Nederlandsch Indische Handelsbank
(Netherlands India Commercial Bank), amsterdam, called at the bank today
and talked with Mr. O'Hara and myself regarding the business Of his bank
and conditions in the Netherlands and the Netherlands East Indies.
During
the course of the conversation Mr. Storm said that Mr. Zeilinga, President
of the Java Bank, had been forced to resign and that his successor, formerly
head of the Netherlands Treasury at the Hague, was already on his way to Java.
Mr. Storm said that Mr. Zeilinga had been severely criticised for the strong
arm methods which he had used with the hanks in Java and was also held
responsible to some extent for the substantial increase which has occurred
in recent years in the floating debt of the Dutch East Indies.
Mr. Storm
explained that the Dutch ..;ast Indian Government had made extravagant expen-
ditures for public works and for social welfare, and that Mr. Zeilinga had
encouraged the government in this course and was always prepared to discount
increasing amounts of treasury bills.
The fact that the Dutch East Indies'
budget is not balanced contributes in a large measure, Mr. Storm said, to
the discount which prevails on their exchange.
He explained that his bank,
anticipating a fall in the Dutoh East Indian guilder, had operated accordingly to a considerable extent in the exchange market and because of such
operations his bank had been severely criticised by MrZeilinga and on
several occasions accused hy the latter of being responsible for the weakness in the guilder.
It was apparent that the relations between the
Nederlandsch Indische Handelsbank and the Java Bank are rather strained due
to the unfriendly attitude of Mr. Zeilinga, and yr. Storm said that he thought
FEDERAL RESERVE BANK
OF NEW YORK
.
OFFICE CORRESPONDENCE
To
FROM_
Mr_Case,
DATE
SUBJECT:
J. E. Crane.
___4eptember_25,
192_3-
Java Bank
-2-
the representations which his bank had made
to the Netherlands Government were
partly responsible for the forced resignation of Mr. Zeilinga.
Mr. Storm also told us that the Java Bank had made substantial profits
from its operations for the Dutch East Indian Government and was endeavoring
to declare a huge dividend of over 100 per cent. which Mr. Storm said was entirely unjustified, had been condemned by the conservative bankers and opposed by
the Dutch East Indian Government.
In spite of this opposition Mr. storm
that Mr. Zeilinga would be able to put through his program.
thought
Mr. Storm referred
to the policy which the Java Bunk has pursued during and since the war of
keeping its discount rata very low, at present 3 1/2 per cent, and said that
his bank had been strongly opposed to this policy and considered it a very
unwise one.
He said that Mr. Zeilinga had endeavored to use strong arm
methods to curtail credit without raising the rediscount rate.
Mr. Storm
also stated that relations between the Java Bank and the Netherlands Bank
were not at present very friendly on account of Dr. Iissering's dislike
of the methods pursued bY Mr. Zeilinga, and said that for the first time
in the history of the two banks Dr. Iissering had publicly condemned the
policies followed by the President of the Java Bank.
Ti
FEDERAL RESERVE BANK
MISC. 4.1.
OF NEW YORK
a ICE CORRESPONDENCE
Governor Strong
To
FR
1
DATE
SUBJECT
January 3, 1924. 192L
Japan.
J. E. Crane
Prior to September 1, the date of the earthquake, i
at 48 1/2 or 49 for months.
Japanese yen were quoted
The course of Japanese exchange since September 1 has been
as follows:
t4r
September 1
Ft
15
1
October
15
November 1
ti
15
December 1
II
15
2
January
-
4800
4840
4860
4880
4875
48125
47875
4681
4550
We discounted 4,000,000 of bills for the Bank of Japan on December 18.
For over a yell.'
prior to that date the Bank of Japan had 0,500,000 in bills, 0,500,000 in certificats
and 7.,000,000
in free balance. They now have
17,000,000 as against if;20,000,000 befor
.
.21
8yolt.
6--
Copy
7(e)
FEDERAL RESERVE BANK
r co. er
OF NEW YORK
OFFICE CORRESPONDENCE
1Tr. Case
DATE
August 22, 1925
SUBJECT:
J. E. Crane
FROM
Yesterday when Dr. Mlynarski and Mr. Gliwic were waiting to
see you, I was talking with them regarding the settlement of the Belgian
debt.
Mr. Gliwic said that he had been told by a member of the Belgian
Commission that Mr. Mellon
had
assured them that there would be no diffi-
culty about the National Bank of Belgium obtaining a credit from us for the
stabilization of their exchange similar to the Bank of England credit now
that Belgium had undertaken to pay its debt to the United States.
Gliwic said that he thought
We
Mr.
might therefore expect to have another
customer before long seeking credit from us.
I have put this in writing because I thought you might like to
have it in the record.
-
192_
OMS-2-2SM 11-24
"WM!
INTEROFFICE
FEDERAL RESERVE BANK
OF NEW YORK
ROUTE SLIP
A. M.
P. M.
TIME
TO
REN1ARKS
OFFICE SERVICE
MESSENGER SECTION
DATE
a
42.__ezt_srmpARTmE NT
DIVISION
TION
9
FROM
DEPARTMENT
DIV IS ION
N. B.
USE THIS FORM IN EAD OF OFFICE ENVELOPE 14;
TO INSURE PROMPT AND ACCU RA FE DELIVERY ALL COMM
P
ATIONS SHOULD BE DISTIN CTLY L
DERAL RESERVE BANK
MISC. 3. 1-50M.I-35
OF NEW YORK
OFFICE CORRESPONDENCE
Governor Strong
DATE
SUBJECT:
October 1 1925
192
perienoed foreign exchange men,
".°E
j. 3. Crane
FROM
John?. Schmid
Vice President, Bankers Trust Co.
He is the active senior officer in charge of the Foreign Department
and has had many years experience in foreign exchange both at the Bankers Trust
Company and blsard Freres. He is above everything else a trader although in
recent yearshas had considerable experience in cemmercial credits. He is
without question one of the best foreign exchange men in New York. The only
criticism I have ever heard of him is that he is every hard man to work for,
being quite domineering and arbitrary to those under him. Approximate ages 40/45.
F. A. Klingsmith
Assistant Treasurer, Bankers Trust Co.
He is second in command ton*. Schmid in the Foreign Department and
concerns himself principally with commercial credits. His experience along that
line has been considerable, principally in the Bank of New York where he worked
for many years before going to the Bankers Trust Company. While I doubt whether
he has had much actual trading experience, I an sure that he understands that
Furthermore, he has always impressed me
branch of the business thoroughly.
as having an excellent grasp of the foreign exchange business and is possibly
a little more of a theorist than Mr. Schmid. Although he does not occupy quite
as prominent a position among the foreign exchange men in the city as Mr. Schmid,
nevertheless I have always thought that he was about an par with the latter.
Approximate aces 40.
1. J. Barnes
Assistant Vice President, National City Bank.
He is the right hand man tolls'. Duis, who has charge of the trading
at the City Bank, and has been at the National City Bank for a good many years.
It is my impression that most of his experience is in trading and I do not
think his training has been quite as broad as Er. Schmid's or Ur. Klingsmith's.
I would not rank him quite as high as either of then. However, he is very
bright and has a thorough knowledge of foreign exchange. Approximate ages 35/40.
-.0-0-0 -0-0 -
;.ward S. Spitzer,
Manager, Foreign Department, Heidelbach Idkeiheimer
& Co.
While he was born in Nurope and has some Jewish blood in his veins,
FEDERAL RESERVE BANK
MISC. 3. 1-50M-1-25
OF NEW YORK
OFFICE CORRESPONDENCE
DATE
SUBJECT:
Governor Strong
Crane
J
FROM
October 1,1926_____ 192_
BXperienced foreign exchange men-
2
Edward E. Spitzer,
MAT., Foreign Dept., Heidelbach Ickelheimer & Co.
he has been in this country since he was a child, is
He is in Charge of the foreign business of Heide/bach
is primarily a trader although he is also every good
Spitzer is a former President of the Foreign Exchange
a citizen, and 100 American.
Iakelheimer & Company and
commercial credit man.
Club, and ranks very high
nr.
'among the exchange men in New York. He is probably more of a student than any
of the
TIAM
which I have mentioned so far, and I would put him in the class with
Schmid and Klingsmith.
Approximate age; 35/40.
-0 -.0 -0
D. J. Palmer,
Lanager,
Foreign Department, Farmers Loan & Trust Co.
He ranks about like a junior vice president and is in direct charge of
all of the company's foreign business. Consequently he is well versed in all
phases of the work. Fa% Case knows him very well and has the highest regard for
his ability. Approximate ages 35/40.
H. P. Barrand,
2nd Vice President, National Bank of Commerce.
The Foreign Department of the National Bank of Commerce is under ressrs.
Penny and Broderiak, Vice Presidents, and Mr. Barrand is next in :Line. I think
he looks after the ccnmeroial side of the business While the trading is handled
by Ur. FranzLeyer. Pr. Barrand has been in the Commerce for a number of years
and is an experienced foreign man although I do not know how much training he
has had in trading. I would rank him about with Burnes of the City Bank, both
of whom I think are a little below the others mentioned. Approximate ages 40.
aaaa
There are two younger foreign exchange men in New York who have always
impressed me very favorably and wham I would reoommend if "Itunior officers" could
fill the job.
Knight Woolley
Assistant Cashier, Amerioan Exchange Nat'l Bank.
He has been out of college about ten years most of which time has been
bank. While be has specialized more in
the commercial credit side, I think he is also entirely familiar with the trading
end. He is a very high class young man, comes from a very good family, and has
spent in the Foreign Department of this
FEDERAL RESERVE BANK
MISC 3. 1-50M-1-25
OF NEW YORK
OFFICE CORRESPONDENCE
Governor Strong
FROM
DATE
SUBJECT:
October 1, 1925
192
Experienced foreign exchange mmn.
J. E. Crane
Knight Woolley,
Assistant Cashier, American I. Natl. Brink.
a, very good grasp of the foreign exchange business. I think he is a "comer" but
of course has not had as much experience as those men mentioned above. Approximate
ages 30.
Wm. H. Draper,
Assistant Treasurer, Bankers Trust Co.
He is next in line to Klingamith in the Foreign Department of this
company with whom he has been connected for only a few years. Prior to that time
he vms with K. N. &X., and before that, I think, with the National City Bank.
At any rate he has had a good many years of excellent experience, and I think he
is faailiar with all sides of the business. He has always impressed me as being
a very bright and aggressive young man and would fit into any high class organization. Approximate ages 35.
MISC. 4. I -200M-I -24
FEDERAL RESERVE BANK
OF NEW YORK
OFFICE CORRESPONDENCE
Mr. Crane
FROM_
DATE
U
November 4, 1095.
ECT :
J. H. Case
4-
I am interested to kno
just how you handled the matter of the
thousand-dollar draft of the R ichsbank signed by Dr. Schacht, which we
*fd""*.-.,
cashed for him on Monday, November P, and which lacked one signature.
Kindly advise me
he details of the procedure you followed.
192
MISC. 3 C
I
FEDERAL RESERVE BANK
OF NEW YORK
MISC. 3 C75M03-59)
OFFICE CORRESPONDENCE
DATE November 10, 1925
Governor Strong
T
SUBJECT:
J. E. Crane
FROM
Referring to the attached letter from Governor Norman, the
increases shown in the Bank Polski statement from September 20 to
September 30 in the items "Foreign Balances, Bills and Money" and
"Gold" are, in the former item, from Zl. 69,009,000 to Zl. 71,739,000,
an increase of Zl. 2,730,000, and, in the latter item, "Gold", from
Zl. 131,978,000 to Zl. 132,807,000, an increase of Zl. 829,000.
For
the same week the increase in "Foreign loans on gold - Federal
Reserve System" is $2,100,000 all of which is made up of advances to
the Bank
Polski.
You will note that this increase in foreign loans
on gold does not correspond closely with the increase in Bank
"Foreign balances, bills and money".
Polski's
However, the statement for our
own bank, which shows only our share of the foreign loans on gold,
exhibits an increase in that item for the week of September 23-30 of
$567,000 which is about Zl. 20800,000.
This latter figure corresponds
more closely to the increase in the item "Foreign balances, bills and
money".
Perhaps the Bank of England has overlooked the fact that
our own bank statement shows only our share of the foreign loans on
gold and that the total amount of these loans is found in the statement of the twelve Federal reserve banks.
At any rate I do not think we should look for a reflection
of the loans which the Bank
Polski is
obtaining from us in the item
"Foreign balances, bills and money" because our advances to them are
made only to meet their drawings on New York (either on us or one of
MC. 3 C
FEDERAL RESERVE BANK
OF NEW YORK
(misc. 3 C-75M-5-59)
OFFICE CORRESPONDENCE
DATE
November 10, 1925
SUBJECT:
T
FROM
-2the other New York banks) so that as these advances are made to them
there is probably no increase in their balances in New York.
However,
there is an item in the Bank Polski statement which would seem to
reflect their loans from us.
foreign exchange".
This is the item "Liabilities in
Between September 17, when we made the first loan
to the Bank Polski, and October 10, which is the date of the latest
Bank Polsi statement we have, our loans to the Bank Polski aggregated
$3,400,000 which is about Zl. 17,000,000.
Between September 10 and
October 10 the item "Liabilities in foreign exchange" increased from
Zl. 24,643,000 to Zl. 41,684,000 or approximately Zl. 17,000,000.
The last question which Governor Norman asks in his letter
is if the Bank Polski is drawing on its credit with us how is it that
notwithstanding the pledging of gold for our account in London the
Bank Polski is nevertheless able to record an increase in that item?
Between August 25 and October 2 the Bank Polski set aside for our
account at the Bank of England approximately $10,000,000.
From
August 20 to October 10 the item "Gold" in the Bank Polski statement
increased from Zl. 121,740,000 to Zl. 132,072,000.
My belief is that
the Bank Polski has not deducted from the item "Gold" the amount
of gold which has been set aside for us in London but that they have
continued to carry it in their reserve and are showing their borrowings abroad under the item "Liabilities in foreign exchange".
FEDERAL RESERVE BANK
Misc. 4. 1.100M.8-25
i)
OF NEW YORK
OFFICE CORRESPONDENCE
To,
192_
SUBJECT:
Mr. Crane
FROM
DATE November 50, 1925
Benj. Strong
Please read the attached letter from Mr. Gilbert and give me a memorandum
of what you think about the question of the discount on the gold mark.
The gold mark, you realize, is simply a theoretical money of account.
Am I correct in assuming that the discount, which is, of course, merely a constructive one, means that the creditor governments accept payment at a rate of
in other
exchange Which is the equivalent of gold marks laid down in London;
words, is the equivalent of the cost of importing gold rather than remitting
exchange, notwithstanding that no gold is shipped?
FEDERAL RESERVE BANK
OF NOW YORK
MISC. 4. 1-ZOOM-7-24
OFFICE CORRESPONDENCE
To
Eiss Bleedker
DATE
January 6, 1926
192
SUBJECT:
J , B. Crane
FROM
With reference to the attached letter, you will note that we cannot
use this new coding arrangement with Dr. Schacht until we hear from him.
Further-
more, it will not be possible to send the special shuttle for a few days as the
shuttle was manufactured incorrectly the first time and is now being made over
again.
I expect, however, that we will be able to send the new shuttle to
Dr. Schacht shortly.
I will let you know when this arrangement can be used with
Dr. Schacht and will also advise the Codes 6: Test Department.
FEDERAL RESERVE BANK
MISC. 4. I-200M-7-24
OF NEW YORK
OFFICE CORRESPONDENCE
To('
FROM
Vr. Scott
DATE
/92
SUBJECT:
J, E. Crane
// iH
)1"
Lttached is a letter from Dr. Schacht
Helmkin,
February 5, 1926
which you
might show to Miss
Does she understand that Bentley's Code with this special shuttle
will be used only on confidential cables between Governor Strong and Dr. Schacht
and that our cables to Schacht will be addressed "Schacht Reichsvalu Berlin"
and that Dr. Schacht's cables to us will be addressed "Strong Reichfed New York" ?
r
fikt
FEDERAL RESERVE BANK
Misc. 3. 1.50M.8-25
OF NEW YORK
OFFICE CORRESPONDENCE
To
DATE
Miss HelMkin, Codes &-lests
February 6, 1926
SUBJECT:
W. A. Soott._Eoreign Dept.
FROM_
,
cv
1
Attached is copy of a lette
from Dr. Schacht regarding the use
of the special shuttle which we sent to him to be used only on confidential
cab es between Governor Strong and Dr. Schacht.
If you have not already
done so, will you kindly make a notation on your records that the cables
to Dr.
Schacht
from Governor Strong are to be addressed "Schacht Reldhsvalu
Berlin" and that Dr.
Schacht's cables
"Strong Reidhfed New York".
to Governor Strong
will be addressed
192_
-
3 -11
fi
3
eteT it sabot.
41,
.LiareE
.JicLfr4ilipmori ,S0004.
-
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'A140 boor ød o: add
7,bain,113 Son
14 Vift4:3
liar(x1.sibagoe
MI 3sr. .b-rocet loov4
os.
10 V.4.015
beciar4J41,
Stash eve daitts eLT iffis latostla atisto
btu Bacmill loineroD nevociod zek'Itatt
solte,toca
elAgi Vbet.0 IRA
fifer
enob
rrialystbieff tdosidoa" bevasabbp ad o37-4rto-rSei icartovo0 teo,r1 tdoadoll sw7. OS
bf.oesortbf45
Lftwtjt3itomtorcii)
tteltiotv etiloadoe .7t1 led/ ban "irlit:61
.-117GY
wer, betrici oft ginvz.32"
FEDERAL RESERVE BANK
OF New YORK
Mm,L1.501d.8.25
DATE
OFFICE CORRESPONDENCE
11r. Crane
February 6, 1926
SUBJECT:
To
W. 1. Scott
FROM
/fr4
I have sent to Liss Helmkin a copy of the attached letter
from Dr. Schacht relating to the use of the special shuttle with
Bentley's code.
I have previously explained to her the manner in
which it was to be used and the way in which the confidential cables
were to be addressed but have again sent to her a memorandum stating
that the shuttle is only to be used on confidential cablegrams between
Governor Strong and Dr. Schacht and that Governor Strong's cables
to Dr. Schacht are to be addressed "Schacht Reichsvalu Berlin" and
Dr. Schacht's cables to Governor Strong will be addressed "Strong
Reichfed
New York".
192_
3. 1
FEDERAL RESERVE BANK
6014 7-26
OF NEW YORK
OFFICE CORRESPONDENCE
To
Mr. Case
DATE
Larch 23, 1927.
SUBJECT
J. B Orane
FROM
With regard
to your suggestion that a definite
time be fixed for
the visits of Drs. Vissering and Bachmann with Governor Strong,
ing a telegram for your approval which suggests that
I am attach-
Dr. Vissering go to
Atlantic City on April 6 for two or three days, and that Dr. Bachmann go on
April 11,
If Governor Strong arrives in Atlantic City about April 1, he
will probably want several days to become acclimated and,
probably
not care to receive either of these gentlemen before the middle
of the first meek in April.
I think
that DT.
Bachmann is planning to return
home about April 18 so that the most convenient
time for their
appear to be during the first and second weeks of April.
therefore, would
visits would
192_
4.
4bcr1i.
'
in4 pg.
ivtort 10,747 Tb
441:011
A
MOW Tr
1.
Ofile
;,"':: 71-
Igiortrerk ales. e.p.
v. tatlisir.
6
@FedFRASER