View PDF

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

?

(,)

Th Nan rporkiTerald Cribunt
Ftrst toiast- the Ihtth.Nettis-Editorials-Adverttsentents
.1

3

0
e

UUly 10, 1925

Dr T. Randolph Burgess
The -dew York Federal Reserve lank
N.Y.

Dear Dr. Burgess:
I wonder why Governor Strong went to
Europe without informing the New York newspapers on the

eve of his departure. It was inevitable that his trip should
ultimately become known, and the only effect of departing

secretly has been to shroud the trip in a suspicion of mystery
that is the very thing he has so often said he wished to avoid.
If any of us Wall Street reporters had discoVered the trip while
he was at sea, the temptation to jump dit senaational conclusions
would have been very strong.
he incident has elicited some sharp comment from
us newspapermen, both reporters and executives. one of the latter

said to me.iast night, "So the Federal Reserve lank is up to its
old practices again. I thoujit perhaps Governor ."trongls good
resolutions of a few weeks ago would not last."
The Governor, natura4y,disiikes publAcity.
and

so do Lamont, rorrow,/_Leffingweil, and perhaps SPeyer and Clarence

Dillon, but when they go to Europe they do not perhit themselves
to be discovered suddenly landing in France or ngland. They
 always issue a statement before sailing to put rumors to rest.


ht New `Uorklierald itribunt
First to last- the .Thith:News-fditorials-Advertisemetits

2

Please dic) not misuncierstand my writing to you. I
am simply giving you confidentially the reaction caused by

an incident that affects the iieserve ank in a certain small
degree; and I am acting in the same mkpI spirit that leads
you to call my attention to distasteful "topics" in our.
newspaper.




Yours faithfully,

Grand Hotel,
Rome, May 26, 1926.

Dear Mr. Warren:

I have your letters of May 20th and 21st, together with Sir Ernest
Harvey's letter of the 19th of May, which you enclosed.

Also, I have your

telegrams dated the 23rd (two), 24th and 25th, sent through the Embasey,
which are numbered 7, 8, 9 and 10 (I assume these are Embassy numbers).
They keep ma well informed, and I am glad to have them.

Of course,

Pertinax can be disregarded, but I am writing Mr. Herrick about the article

in the "71cho de Faris" so that he may not feel at all uneasy an to anything
that I said while in London or Paris. I hope you will continue to keep me
informed.

I am telegraphing you today that we are leaving Saturday morning

for lilan, but I cannot yet give you an address for mail or telegrams beyond
what is contained in my wire.

I hope you have an interesting stay in Paris, as we are here.
Best regards.

Sincerely yours,

Mr. Robert B. Warren,
0) Morgan, Harjes a Comnany,
14, Place Vendome,
PARIS.
ES al




Grand Hotel,
Rome, May 26, 1925.

Dear Mr. Warren:

I have your letters of May 20th and 21st, together with Sir Ernest
Harvey's letter of the 19th of May, which you enclosed.

Also, I have your

telegrams dated the 23rd (two), 24th and 25th, sent through the ilabaesy,
which are numbered 7, 8, 9 and 10 (I assume these are Embassy numbers).
They keep me well informed, and I am glad to have them.

Of course,

Pertinax can be disregarded, but I am writing Mr. Herrick about the article

in the "Echo de Paris" so that he may not feel at all uneasy as to anything
that I said while in London or Paris. I hope you will continue to keep me
informed.

I am telegraphing you today that we are leaving Saturday morning

for Milan, but I cannot yet give you an address for mail or telegrams beyond
what is contained in my wire.

I hope you have an interesting stay in Paris, as we are hero.
Best regards.

Sincerely yours,

Mr. Robert B. Warren,
sio Morgan, Harjes a Company,
14, Place Vendome,
PARIS.
ESsM




FEDERAL RESERVE BANK
OF NEW YORK

Misc. 4 A 180 16 1-26

OFF .7,E CORRESPONDENCE
To

MrRoUrt

Warzen

DATE

March 23,

1927

SUBJECT:

FROM- Govern or,__ Strong

I have jut finished reading the Weekly Review, No. 7, and
have been interested in the discussion of world prices. With much of
it I can heartily agree, but as to some of the conclusions I am a bit
It is certainly a very thoughtful article and provokes
skeptical.
reflections which are not suggested in the course of ordinary reading.

I have just written Mr. Case about the care with which some
The one I sent him I could not identify
this one I feel sure is yours, so I am writing

of these reports are prepared.
by the initials, but
you directly.

We pride oureelvee in the bank in turning out work that is
mechanically and textually accurate, and I am very anxious to see the
standard maintained. You will see what I mean by referring to page 5
of the article on prices where I have marked two items where correcOn page 7 of the article you say, "From these ditions are needed.
vergent movements certain tentative deductions may be drawn," and then
item No. 3 relates to wages where the movement has not been previously



(k)

0a

cs.

70
1

ks1 3

00
4. 0
tc.

0

00

10

0

ua

P.

t

1---

0

r

l'A

O

r.0

U.

0

0"
4-4

'...

0
9

\

6 6 k"
F'

e0 6

\

0

t'

\ 1.

"

(1)

.0

FA 0
4).A

.S.' 6
2,
.11.'

CI

S

IA
,..i

c.)

0
17
c0
t.,) 9, ,,.. 6 vf.,---0
tt

GI

tp`

Smi \

V

FA

qA

'C'S ." 1-4 CI
a)

Tet

P24\

t,

,t-4

VA

e

d "6

6
e.)

" '9 0 '9 0
*T.
0 0 6,
.t

4-4

01

cf_k

tt,

6

sA

6

6 eo

tO

,6 0 0 sA IA 4? 4,
C0
0 jp
sA
tsi
0 pi G) 0 9

6,

AI

t)A
,

'1

.0

ek " .
6
0

0t\

oslIK

pe)

6

ek

z6

IS..

4

C.)r'

IA

0,

>4

P

,1)

IP




q.)

0)

14,A

vs2L.

jA

_A

'CI

,..A 7,

"6

.4 a

0

6 4.) °
/1
6 P tat-4 70'
-0 .e

*7'

'`A

-0

/OA

00

,

tt
IA
to

A

br, IA
2.0.4 ...4

0

0

'

FEDERAL RESERVE BANK
OF NEW YORK

M

-OF1E Cr-_SPONDENCE
To_

Mr. Robert Warren
_

Gevezner Strong

March 23,

192 7

SUBJECT:

.

FROM

DATE

- 2-

diecussed at all. One of your cAeclueione which I disagree with is
that agricultural prices are more sensitive to credit conditions than
other prices. My own belief is that just the reverse is true.
On
page 12 there is a mistake in grammar.

I hope in preparing these reports you will follow the rule
of having the original draft in such finished form that when those
prepared for circulation are typed they will not contain corrections
in ink and that the technical details will be accurate. You know this
is important because it is by just such indications that the officers
of the bank form their judgmeht as to the character of the work being

done in the departments. I am a bit of a stickler about this, SO I
But thic did not detract from my
enjoyment of the substance of the article.
4ith beet regards - I hope you keep well and enjoy the work

am writing you direct:5r myself.




-




,




;?e, 3,.sk

4,re.

FEDERAL RESERVE BANK

OF NEW YORK

May 6, 1926

My dear Mr. Moore:

It has just been discovered that when the code words for Governor

Strong's special use were assigned to me, they included a certain set of words
which were already in use between the Bank of England and ourselves, covering
the Bank of England Credit.

It is, therefore, impo

be changed to avoid conflict.
Will you please refer to that page of the special code words which
begins

FEDERAL RESERVE BOARD
WYSSA - Discuss with Fed ral Reserve Board and advise their views.
Au.

words on that page, to and including WYWUC - Theo. F. Whitmarsh, will

need to be changed.
beginning with YAVAM.

So we have decided to use the words in the Bentley book
That. will make your list now read:

YAVAM - Discuss with Federal Reserve Board and advise their views
and so on, using the new words consecutively, down to

YAYPA - Theo. F. Whitmarsh"
On the page following this list, that is the one headed
" FEDERAL RESERVE BANK OF NEW YORK

WYZAZ - William L. Saunders,
t4,
4,
two words will need to be changed, namely WYGVB and AP/DAD, so that that particular

section will end with



FEDERAL RESERVE BANK OF NEW YORK

Mr. Moore

5.6.26

4YAYS0 - Refer to (or referred to in) minutes of Board meeting of

0

YAYUT - Jas. S. Alexander - Member Fed. Advisory Council.'
This involves the substitution of twenty-six words in all, and it will

be appreciated if you will make the necessary changes in the list you took with
you.

I hope you find things work out well, and that you will have an
interesting experience.

Very truly yours,

s
Secretary to the Governor.

Mr. 0. E. Moore,
c/o Bank of England,
London, England.







Wa-




WESTE

dlue

Nite

otessage

TEL

Letter
NL
these three symbols

itter tio check number of

this isa day message. Otherits character is indicated by the

(of appearing after the check.

REIVED AT

UNION

_NEWCOM B CARLTON.

195

PRESIDENT

CLASS OF SERVICE SYMBOL
Day Message

Day Letter

Rite

Night Letter

AM

Bias

Night Message

NL

If none of these three symbel,

GEORGE W. E. ATKINS. FIRST VICEPRESIDENT

appears after the check number of
wordsithis iS a day message. Othcrwise its character is indicated by the
symbol appearing after the check,

)ADWAY, N
1920 FEB 12

2E7B 37 NI,
HANOVER NH 12

S SCOTT

7094
FEDERAL RESERVE BANK NEWYORK EY

REFERRING SANFRANCISCO TELEGRAM KOREA MARU SAILS APRIL SEVENTH

SUGGEST YOU CONFER WITH NAGAIKE AND SEE IF HE CAB SECURE
DELUX CABIN FOR STRONG AND PARTY HOPE WE MAY. HAVE DEFINITE
VOW MONDAY SO I MAY ADVISE STRONG

CASE.

I

PM 3 47




DOW, JONES 84 00.

NEWS BuLLETINs
rHE WALL STREET JOURNAL.
ELECTRIC PAGE NEWS TICKER.
Telephone On 131.0ad.
44 IIROAD ST., NEW YORK.
No. 17

Thursday, Feb. 5, 1920.

UNPRECEDENTED MARKET IN THE EXCHANGES

Conditions in the exchange market on Wednesday
were absolutely without precedent. Never before in the
experience of dealers had rates undergone such wild gyrations in the course of a single day. They were literally at
their wit's end, as it was practically impossible for them
to follow the course of the market during the greater part

of the day. At one and the same time widely varying
rates were quoted in the same exchange. A typical ease
was that experienced by a broker, who at one time was in
simultaneous communication on tlie telephone with three
bankers. One quoted him $3.23 for sterling cables, another $3.27 and the third $3.30, an extreme discrepancy
of seven cents.
The weakness of the market was pronounced from
the very opening. Taking its cue from London, which
cabled a severe drop in rates as compared with the previous close, the market started with demand sterling at
an overnight decline of five and one-quarter cents.

Thereafter, there was no let-up in the pressure until the
rate touched the unparalleled low level of $3.19 shortly
after the noon hour.

At this point, there was a sudden transformation in
the aspect of the situation. The London report that cotton imports were stopped because of the collapse in exchange was apparently garbled, and a rumor was set afloat
that an actual embargo had been imposed on the imports,
by the British Government. This, coupled with the wild
rush of the horts to cover, caused sterling to bound up'
hen denial of the rumor was received, the
to $3.31.
bearish forces again gained the ascendency. A few goodsized offerings put the sterling rate down to $3.25, and
then again to $3.1914. Toward the close a steadier tone
set in, and the finishing rate was several cents above the
low record of $3.19 established during the day.
Most of the other exchanges suffered declines which

were more or less comparable with that in sterling. Of
" the remittances lire showed the most conspicuous
,ess, dropping at one stage below 19.00 lire to the
which
1-,e




represented

a

loss

of

about

closing quotation of the previeif a franc to the I
rt of the da
sterling

11/2




FEDERAL RESERVE BANK

4A 180M 1-26

OFNEW YORK

91:Tk.',E CORRESPONDENCE
To
FROM

Mr. Scott - Foreign Department
Mi Se

DATE

_Apall_21, 4926

192_

SUBJECT:

keecker

RECEIVED FIVE ENVELOPES EACH CONTAINING the following British money
ONE POUND NOTES -

FIVE

TEN SHILLING NOTES - EIGHT

SILVER COIN aggregating ONE POUND,.///

This is to be charged in suspense in connection with the Governor's European trip,

and will later be accounted for in detail.





Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102