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F.D. 12A.3 ,

5

310'111

No

Federal Reserve Bank
District No. 2
Correspondence Files Division

SUBJECT







40 WALL STREET,
NEWYORK

Oct. 9,1914.

Hon. Benjamin Strong, Jr.

oeT-9

1914

Bankers Trust Co.
New York, N.Y.
Dear Yr. Strong,

The enclosed letter seems possibly to call
for a meeting of Directors,before the meeting in
I have only discovered this just as
Washington.
,I am leaving town, and I must run for the train.
I wish you would write me your views on this,
addressing me at Groton School, Groton, Lass, this
afterhoon.if you think it advisable I can then give
instructions for a call for a meeting next Wednesday
morning at 9.30

Am sorry to go out of town without meeting
you hut the train leaves at four o'clock, and there
is no other.
Very truly yours,




P S TA L.
I.

2.11

I.

LE-GRAPHCAB

-r"

.11;

COMPANY

NIGHT LETTERGRAM

THE POSTAL TELEGRAPH-CABLE COMPANY (INCORPORATED) TRANSMIT
TERMS AND CONDITIONS PRINTED ON THE BACK OF THIS BLANK.

ENS THIS NIGHT LETTERGRAM SUBJECT TO THE

CLARENCE H. DAACKAY. PRESIDENT.

INDEPENDENT

3-3W-711,4

Benjamin

COMPETITIVE

S.
.,
La

DeLivElr 4.

RECEIVED AT

4-550

I I.

PROGRESSIVE

771-1,

WASHINGTON DC OCT 18-14.
Strong Jr,

Governor, 27 Pine St, New York.

They now plan giving reserve agents special supervision over auditing.
I wish very much you could let your auditor at bankers come over
bringing samples
reserve

of instructions and

agents tuesday and

help me on subCcmmittee on

wednesday. It is an opportunity to establish

principles underlying audit among those specially interested many of
whom probably have no experience. Perhaps also patterson would dictate

something relative to

principles. Suggest changing by-laws

executive committee is composed of not less than 3 omitting

of classes A

and B.

ask Cam forward

Also omit section two of

so that

mention

amendment article please

mail. Please leave copy your analysis of things to

be done before opening_ t shoreham for me on your arrival.




IN

POSTAL TELEGRAPH-CABLE COMPANY

CONNECTION
WITH

THE COMMERCIAL CABLE COMPpinf

[9 AND 4]

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 NIGHT LETTERGRAM SUBJECT TO THE FOLLOWING TERMS AND CONDITIONS:
The Company will receive, not later than midnight. NIGHT LETTERGRAMS, written in plain English, to be transmitted only for delivery on the morning of the
next ensuing business day, at rates still lower than its standard night message rate, as follows
The standard day rate for a ten-word day message shall be charged for the transmission of a NIGHT LETTERGRAM, containing fifty words or less, and onefifth of the standard day rate for a ten-word day message shall be charged for each additional ten words or less in such NIGHT LETTERGRAM.
To guard against mistakes or delays, the sender of a message should order it REPEATED, that is, telegraphed back to the originating office for comparison. For
this, one-half the unrepeated message rate is charged in addition. Unless otherwise indicated on its face, THIS IS AN UNREPEATED MESSAGE AND PAID FOR
AS SUCH, in consideration whereof it is agreed between the sender of the message and this Company as follows
1. The Company shall not be liable for mistakes or delays in the transmission or delivery, or for non-delivery, of any UNREPEATED message, 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 message, beyond fifty times 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 ; NOR
FOR ERRORS IN CIPHER OR OBSCURE MESSAGES.
2. In any event the Company shall not be liable kir damages for any mistakes or delays in the transmission or delivery, or for the non-delivery of this message,
whether caused by the negligence of its servants or otherwise, beyond fifty times the REPEATED message rate, at which amount this message, if sent as a REPEATED
message, is hereby valued, unless a greater value is stated in writing hereon at the time the message 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.
3. The Company is hereby made the agent of the sender, without liability, to forward this message over the lines of any other Company when necessary
to reach its destination.
4.

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:

5. 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.
6. This Company shall not be liable for damages or statutory penalties in any case where the claim is not presented in writing within thirty days after the
message is filed with the Company for transmission.
In further consideration of the reduced rate for this special "NIGHT LETTERGRAM" service, the following special terms are hereby agreed to

NIGHT LETTERGRAMS 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 LETTERGRAMSat destination, postage prepaid.
NIGHT LETTERGRAMS shall be written in p in English. Code language is not permitted.
7. The above terms and conditions shall be bin
jpon the receiver as well as the sender of this NIGHT LETTERGRAM.
8. NO EMPLOYEE OF THIS COMPANY
1JIORIZED TO VARY THE FOREGOING.
CHARLES C. ADAMS, VICE-PRESIDENT.

CLARENCE H. MACKAY, PRESIDENT.

EDWARD REYNOLDS, VICE-PREST. AND GENERAL MANAGER.

CHARLES P. BRUCH, VICE-PRESIDENT.

Office Correspondence
Tr

BANK OF NEW YORK

Date

July 29, 1915.

Subject:

Mr. Strong--

From

FEDERAL RESERVE

Mr. Jay

Governor Hamlin telephoned about 5:15 P. M. yesterday, reporting the action of the Board in the Fowler application matter,
stating that he hoped that the action of the Board. would not conflict

with any plans we had under way for considering the international law
upon the subject.

I told him that I left quite sure that it would

not conflict.

He also stated that the letter which the Board discussed in
our office about two weeks ago, when four members of it were here, relative to the purchase by this bank of acceptances under the Braun and
other credits, was being mailed to-day in slightly changed form.
He said that he was leaving on the Congressional to-morrow,
Friday, on his way to Mattapoisett, where he would remain until 3 P.M.

Monday; his telephone number there being Mattapoisett 40, in case you
should wish to communicate with him.







'7

f
ruvr

1

7

No

STATES

DIREC'.
LO -AMERICAN

WESTERN UNION

CAB
No.

Service Instructions

WESTERN UNION

RAM

LI

Time Received.

Receiving Office.
See back of Form for' lephone Number.
7. .7"

Via Direct.
Handed in at

No. of Words

z

//

No inquiry respecting this Message can be attended to without the production of this paper.




.79

Please hand your Reply direct to this Office.

THE

ESTERN

ION TELECRAPH-CABLE SYSTRVI.

THE LARGEST TELEGRAPH AND CABLE SYSTEM IN EXISTENCE.

8 DUPLEXED ATLANTIC CABLES.
OVER 25,000 OFFICES AND

1,500,000

MILES OF WIRE.

Direct Wires from Cable Stations to all the principal commercial centres in
Great Britain, United States and Canada, and Direct connection with Central

America, West Indies, South America, Australia, New Zealand, Fanning, Fiji, and
Norfolk Islands.
DIRECT AND EXCLUSIVE CONNECTION WITH MEXICO.

RECEIVING OFFICES IN THE UNITED KINGDOM :Telephone Nos.

Telephone Nos.

LONDON

1, Old Broad Street, E.C.

...

3761 Wall

... 3316
63, Old Broad Street, E.C.
48a, Gresham House, Old Broad St., E.C. 704
... 9117
21, Royal Exchange, E.C.
1070 Avenue
... 11384 Avenue
39, 40, Mark Lane, E.C....
3762 Wall
... 3763 Avenue
East India Avenue, E.C.
16974 Central
The Baltic, St. Mary Axe, E.C.
976 Avenue
1368 Wall
34, Throgmortoia Street
1830 Central
1, Drapers Gardens, E.C.
1050 Avenue
109, Fenchurch Street, E.C.
..
4119 City
10, Holborn Viaduct ...
Effingham House, Arundel Street,W.C. 1713 Gerrard
34, 35, Southampton St., Strand, W.C.... 1155
... 3598
2, Charing Cross, W.C.
5, Royal Opera Arcade, Pall Mall, S.W. 2073 Central
3716 Victoria
34, Victoria Street, S.W.
984 Hop
48, Tooley Street, S.E.
.

I 2274 & 2275

LIVERPOOL: Cotton Exchange ,..

Central.

D 6, Exchange Buildings

1535 Central
1 960

BRISTOL: Canada House, Baldwin Street

309

BRADFORD 10, Forster Square

771

DUNDEE

1,

Panmure Street

1351

...

EDINBURGH : 50, Frederick Street
GLASGOW: 4, Waterloo Street

113, Hope Street

400

450 Central, 1165 Argyle
2017 Central, 2324 Argyle

LEITH Exchange Buildings
MANCHESTER: Si, Brown Street
NEWCASTLE-ON-TYNE 1, Side

600

1455
1329

General Offices - 26, OLD BROAD STREET, LONDON, E.G.
TELEPHONE. 5261 LONDON WALL.

PRINCIPAL CONTINENTAL OFFICES AND AGENCIES:
4, Avenue de Keyser.
49, Canal des Recollets.
4, Weesperzijde.
AMSTERDAM
BARCELONA; 57, Calle Caspe.
4, Prinsengade.
CHRISTIANIA
COPENHAGEN: Dr. Olgasveg, 47.
118, Boulevard Strasbour g.
HAVRE:
12, Ernst Merckstrasse.
HAMBURG:
ANTWERP:

MADRID: Academia, 10.
NAPLES: Via Marina Nuova, 14/18.
1, Rue Auber.
PARIS:
If

37, Rue Caumartin.

26-27, Piazza di Spagna.
ROME:
VIENNA: III, Kaiserstrasse, 24.

ZURICH: 59, Rigistrasse.

The public are recommended to hand in their Telegrams at the Company's Stations, where free receipts are
given for the amounts charged.
Telegrams for this Company's Cables are also received at all Post Office Telegraph Stations ; but in order
to insure transmission by the Western Union Telegraph-Cable System, the forms upon which Telegrams are written
should be marked " Via Western Union," "Via Anglo " or " Via Direct." This indication is signalled free of charge.
Cable addresses are registered free of charge.
All important Telegrams should be repeated, for which an additional quarter rate is charged.




FEDERAL RESERVE BANK
OF NEW YORK

Februnry 18, 1916.

My dear Governor:

Mrs. McLaren has kept you pretty well informed of the
routine matters which have been passing in the office, and the
daily statement

which she sends you whenever there is a mail

should speak for itself.

She also sends you clippings of inter-

est from time to time, I believe.

At the meeting Wednesday we had a full board and considerable opposition developed to the establishment of a department of statistics and information.

Mr. Locke said he did not

believe the Reserve Board read what we sent them now and asked
if I thought any of them had read the long report I made to them.

Certain others objected on the ground that it was unnecessary and
expensive.

Finally, it was suggested that I should make a more

definite report at the next meeting,to be held March 1st.
I am enclosing copy of the estimate prepared for the

committee on equalization of Federal reserve bank investments, to
which Mrs. McLaren has already alluded.
Wednesday, February 23rd.

The committee meets here

Mr. Kenzel is taking advantage of the

holiday situation to be away from the 18th to the 23rd;

Mr. Curtis

likewise.

The Directors decided at the meeting to keep our supply
of Federal reserve notes up to 4300,000,000.



2

FEDERAL RESERVE BANK OF NEW YORK

Benj. Strong, Jr., Esq.,

2/1016.

Mr. Warburg is taking great interest in the development
of the domestic trade acceptance idea and, at his suggestion, the
reserve banks of Boston and Philadelphia have reduced their rate
to 3%.

I told him that I would consider recommending the same

thing here if, at the same time, we could get a movement started
among the merchants to develop the business, and intend to take
this matter up actively next week.

They are doing quite a little

along this line in Cleveland.
I talked with Mr. Warburg on the telephone to-day and
learned that he felt pretty sure of going South on March 10th,
although it is not absolutely decided.
We had two up-state bankers in the office yesterday,

both of whom were very much opposed to compulsory membership in
the collection system on any basis and said that a very strong
movement was going on among up-state banks to contest such a
policy.

I expect to get plenty of this talk in Elmira and Buffalo.

Hendricks has gone up to Albany this afternoon for the group meeting there to-morrow.

I was glad to learnfrom your cablegram that you were going over to Paris this week and trust this means the beginning of
your vacation.

As far as anything on this side goes, you need

not think of hurrying back.
The work is progressing well at the Equitable Building.
The ventilating plans have been declared adequate by our expert,
and Another expert is now checking up the building company's figures
on the strain which will be caused by the vault.
Mr. Broderick is finishing his examination to-morrow.
lunched with him yesterday and he said he would have no criticisms
to make;



that everything seems to be going excellently.

I

RESERVE BANK OF NEW YORK

3

Benj. Strong, Jr., Esq.,

Hoping that you are having a bully time and with best
regards, I am,

Sincerely yours,

Benj. Strong, Jr., Esq.,
c/o Messrs. Morgan, Grenfell & Co,
22 Old Broad Street,
London, E. C.

PJ/PE
Enc.




2/18/16.

STATAUSNT 02 AV1S44Z AX1111393 A54

Y4S:d 1915.
EJTIMATM 10AP0308 MR WIZ YSAA 1916, AND
WiMATEID IN74314BE18 213043JA4Y TO

paroug 3011PIC1aT iAAN1533.

,totual 1.;ac-

Uonthly
Avers4o

penne -onth
of January,
1916

Current spense
Cost of :4)oderal rtysorve notes

Assessment for Aspenses - Fed. ites. 3d.
Amortisation of ."4sponso of Organization
Doprooistion of 2urnitare & ifaluipment

19,542.00
8,128.57
3,840.10
4.00.

-0-

21,924.76
6,240.00
3,605.08
4,680.61
_AALEL_

3 30 67
112 mos. 44, 42,000.

12 mos. dividend, year 1916, u 6.,1; on .e11,055,200.

Total Tarrant needs

Ok

00.12

4ctimated
Lonthl?
2:xponse

Year 1910

24,404.36
8,128.57
3,606.09
4,680.61
060.34

_2_41764.96

46,04,00. for year
663,$12.

F

"

41467,312.

Aoorued divid0Pas tajAtWrAmirliAs_A2AM

Sov. 2# 1914, to ?ob. 2, 1115,4 3,330,000. Q6
-1Psb. 2, 1915, to Liw/ 2# 191b, - 6,667,000. 4m6,
Y:ay 2, 1916, to Deo. 31, 1915,- 10,900,000.

6%

49,950.
100,005.

await.

arand total e3timate1 required oarninge year 1916




589 555.

1#756,067.

-WKSTMENT8 REVIRa TO nal)
IL

YAR AZ)Un4,141=00,1 WI
VARYING RAT4.

831
-ffrokfi

avmaH

volacfarg:

I67,000.
425,200,000.

48.400,000.

08,000,000.

2 1/8

25,700,000.

54,900,000.

82,800,000.

2 1/4

22,400,00i.

51,900,000.

78,210,000.

2 5/8

21,Z00,000.

49,100,000.

74,100,000.

2 1/2

20,160,00J.

46,600,000.

70.400,000.

2 3/4

16,200,000.

4Z,500,000.

64000,040.

3

16 800 WO.

"8 900 OW.

58.700,003.

2




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FILpNj'DEATcAIYRAV TA ;iao 44

FEB 1 3 191G
FEDERAL RESERVE BANK

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02,11L

DIRECT UM,
AN cLo -AMERICAN

WESTERNUNION

CAB
Service instructions.

613.

No.

STATES
WESTERN L

RAM

ION
44')

Receiving Office.

I ,rne Receiveu.

See back of Form for Teleohnne Nu/ ober.

Via Direct.
NO. Of vvorus.

No inquiry respecting this Message can be attended to without the production ot this paPer-

To




isr

-7-

I.

CCq

_
e....-(9

(
Please hand your Reply direct to this Office.

71.

/Lc,

THE WESTERN UNioli TELEGRAPH-CABLE SYST111.
THE LARGEST TELEGRAPH AND CABLE SYSTEM IN EXISTENCE.

8 DUPLEX FD ATLANTIC CABLES.
OVER 25,500 OFFICES AND 1,500,000 MILES OF WIRE.
Direct Wires from Cable Stations to all the principal commercial centres in
Great Britain, United States and Canada, and Direct connection with Central

America, West Indies, South America, Australia. New Zealand, Fanning, Fiji, and
Norfolk Islands.
DIRECT AND EXCLUSIVE CONNECTION WITH MEXICO.

RECEIVING OFFICES IN THE UNITED KINGDOM :LONDON:
1, Old Broad Street, E.C.
63, Old E road Street, E.C.

Telephone Nos.

Telephone Nos.

3761 Wall

...
..
..,

3316
704
9117

48a, Gresham House, Old Broad St., E.C.
21, Royal Exchange, E.C.
29, 40, Mark Lane, B.C. 1070, 1384 Avenue, 3762
20. Mark Lane, E.G.
1050 Avenue
..
East India Avenue, E.C.
3763, 614
The Baltic, St. Mary Axe, EX. 976 Avenue, 6974 Central
34, Throgmorton Street, E.C.
1368 Wall
1830 Central
Drapers' Gardens, E.C.
4119 City
10, Holborn Viaduct, E.C. .
,,
Donington House, Norfolli Street, W.C..
3717
34, 30, Southampton St., Strand, W.C.
1155 Gerrard
Charing Cross, S.W. .
3098
5, Royal Opera Arcade, Pall Mall, S.W.
3073 Regent
34, Victoria Street, S.W.
3716 Victoria
48, Tooley Street, S.E. .
984 Hop
,

............3716

LIVERPOOL: D 6, Exchange Buildings
..
Cotton Exchange

BRISTOL: Canada House, Baldwin Street
BRADFORD: 10, Forster Square
DUNDEE: 1, Panmure Street
...
EDINEURDH: 50, Frederick Street
GLASGOW: 23, Waterloo Street

2274 Central
(Private
Branch
Exchange).

309 Central
771 Bradford

1351 Central
400

1 "l '
(Private
Branch

Exchange).

..
600 Leith
LEITH: Exchange Buildings
..
1455 City
MARCO-HESTER : 30, Brown Street
..
1329 Central
NEWCASTLE-ON-TYNE I, side
'789 West
WEST HARTLEPOOL: Exchange Buildings,
Mainsforth Terrace) Hartlepool

General Offices - WESTERN UNION ROU.SE, 22, GREAT WINCHESTER STREET, LONDON, E.G.
TELEPHONE No.: 800 LONDON WALL (Jrivate Branch Exchange)

PRINCIPAL CONTINENTAL OFFICES AND AGENCIES:-AMSTERDAM
ANTWERP:
BARCELONA

BERGEN:
CHRISTIANIA .
COPENHAGEN
HAMBURG.

4, VVeesperzijde.

4, Avenue de Keyser.
49, Canal des Recollets.
57, Calle Gaspe.

HAVRE:
MADRID:
NAPLES
PARIS

4, Jern ban egade.
4, Grosse Allee.

ROME:
STOCKHOLM
VIENNA:
ZURICH:

96, Paseo de Gracia
Post Box, 166.
4, Prinsensgade.

118, Boulevard Strasbourg
Calle Valenzuela 10.
Via Marina Nuova, 14,15
1, Rue Auber.

37, Rue Caumartin.
49,50, Piazza di Spagna.
Drottninggatan 3.
IV. Stumpergasse, 43.
Pelikanstrasse, 22.

Tlw public are recommended to hand in their Telegrams at the Company's Stations, where free receipts arc
given for the amounts charged.
Telegrams for this Company's Cables are also received at all Post Office Telegraph Stations ; but in order
to insure transmission by the Western Union Telegraph-Cable System, the forms upon which Telegrams are written
should be marked " Via Western Union," " Via Anglo " or " Via Direct." This indication is signalled free of charge.
Cable addresses are registered free of charge.
All impertant Telegrams should be repeated, for which an additional quarter rate is charged.




_

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A DECE

FEDERAL RESERVE BANK
OF NEW YORK

February 25th, 1916.

Dear Governor:

Yesterday and to-day we have been going over the vault

prices but, unfortunately, the increased cost of materials is
making the price higher than it would have been a few months ago.
'Ve have made a number of reductions in our specifications all

along the line without much damage to the strength and the Thompson-Ftarrett people hope to arrive at a definite contract to-day.

The lowest bidders were the York Safe & Lock CO.

It is possible

on account of difficUlty in getting delivery of rails, that

we

may be delayed somewhat beyond the first of May in getting into
the office, but every effort will be made to prevent this.

The

time required to deliver the completed vault is about 11 months.
We are hoping to get the price down to about !A20,000 to '7125,000,

including the auxiliary vault and the linings.
I am leaving in a few minutes with Jim Perkins for
Ithaca where we shall spend the night with Treman and go over at
noon to-morrow to the meeting.

Expect to go from 71mira direct

to -ashington and spend Monday there.

I may learn of something

there which will be of interest to write you.




,ERVE BANK OF NEW YORK

To

Benj.

..........

Feb. 25th, 1916.

'Pong, Esq.

There is little activity in the business of the
bank.
New rediscounts have almost disappeared.
'Yith best regards,

Very truly yours,

Ch

Mr. Benj. Strong, Jr.,
Care :::essrs. Eorgan, Orenfell & Co.,

22 Old Broad Street,
London, England.

pJ/vcm
Dictated by Mr. Jay but
signed in his absence.




2L
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0-4"141-e- .6144-4_

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s---aev

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C)PY

1

4111

Sunday Feb. 27
On train
My dear Governor,

I am on the train from Elmira to W:shington, after the Group III meeting
which was about as usual. Jim P. + I went up to Ithaca Friday P.M. + spent the night
with Treman going over to Elmira Saturday afternoon. We both spoke at the dinner.
Lyford was there, of course, + had asked Turner to have the Group VI resolutions
presented, kicking about reserves, exchange, etc. I spoke of the A.B.A. Nat. Bk.
sections' plan of reducing reserves, frdm:1?4oc9cpex cent + said I favored some such
reduction, + when later Turner asked Lyford if he wanted the resolutions presented
he said he guessed the poison was working + they weren't necessary.
At the Albany
Group last week they had it fixed up to present them but at the last moment didn't
do so. Hendricks was there. A fellow from Gloversville(Harris) + one or two others
were the militants there. But unfortunately for him, Harris spent an hour or so with
us in the office the week before, + he told his associates that after talking with
us he was satisfied we were doing all we could. Jim tells me confidentially what
you may already know that they have a round lot of foreign bills, bank endorsed. This
is a reversal of the policy before contemplated of diverting this business to us,
but if he + his friends have changed their views, it may be well for us to consider
changing ours. You doubtless have this all in mind and have been studying conditions
relative thereto. A little investment of this kind for us at present rates would
help income wonderfully and be comforting to both directors + officers in pursuing
the completion of the organization of our institution.
I hope you're not hurrying. On the surface, at least, there's nothing
going on here. I'm going to lash. for Monday to talk of a number of things. W.C.
Potter of Gt Co. is going to join Guggenheims as a partner.
Yrs.
[signed] P.J.




Form No. ?.-6/14.

CABLEGRAM
No. of Message

tg

oL

"Via Commercial Cables,"

CABLEGRA_, 'received, at

No. of Words,

1.1,2Aft-

the COI

airy respecting this Message cart be attended to without the production of t
ikply:s Offices, and not by </erect application to the Sender.




paper.

ltrions of doubtful words should be obtained through
&

lonulun Wall, Luudon.

TELEPHONE NUMBERS.
LONDON 88/84, Gracechurch Street, E.C....
1148, 1147 A. 11'48 Avenue
(Principal Office, Always Open.)
Do.
23, Royal Exchange, E.G....
. .. 1146, 1147 & 1148 Avenue
Do.
1, Shorter's Ct., Throgmorton Street, E.C.
1332 London Wall
Do.
14, Mark Lane, E.G....
1145 Avenue
1, Northumberland Avenue, W.C.
19
5145 Gerrard
R.. 5, Denman Street, London Bridge, S
°Do.
East India Avenue, E.C.
.. 11 4.6, 114.7 & 114887A8veHnoupe
.
tr Do.
The Baltic, St. Mary Axe, E
... 7436 Central
Do.. 166, Piccadilly, W.
3992 Regent
Do.
34, Victoria Street, S.W. ..
... 4153 Victoria
o aoDfoo 38, Snow Hill, E.C....
4809 City
LIVERIZOOL F7, Exchange Buildings
... 434 Central (2 lines)
De,,
Cotton Exchange
..

.

On-

MANCHESTER: 18. Moult Street, Cross Street ...
BRADFORD: 8, Forster Square
NEWCASTLE-ON-TYNE: 29, Sandhi!!

.

BRISTOL: Back Hall Chambers, Baldwin Street

WESTON-SUPER-MARE: 3, Richmond Street
GLASGOW: 28, Gordon Street...
"
EDINBURGH: 18c, George Street
...

...

1809

...

C1
7_,Ie

13.56 National

75091

7510.4

LEITH: 5, Bernard Street
DUNDEE: 50, Bell Street
...
SWANSEA: (Agency.) 15, Adelaide Street
WATERVILLE: Co. Kerry, Ireland ...

43

Aral
384
589

2340
139

CONDITIONS UNDER WHICH MESSAGES ARE RECEIVED BY THE COMMERCIAL CABLE COMPANY.

Company may decline to forward the Meesage, though it has been received for Transmission but In ease of so doing shall refund to the Sender the amount paid for the transmission
essage
le Company will refund to the Sender the charges paid by him
(a) ror any Telegram which fails to reach the Addressee through any neglect or default of. the Company or its Servants, whilst the
message remains under the control of the Company.
C (b) For any repeated Telegram which, owing to errors made in transmission by the Company's Servants, has manifestly out fulfilled
its °Meet.
ic) For every Telegram in plain language which has manifestly been unable to fulfil its object, in consequence of errors made In
its transmission, unless the errors have been rectified
by paid Service advice.
l!hatever may be the damage caused either by errors, mistakes, delays, mis-delirery, non-delivery, or otherwise, in respect of any Message entrusted to the Company for transmission, and
winsalier the same arise from the neglect or the default of the Company'. Servants, or howsoever otherwise the name may arise, the Company shall not be liable except to refund to the Sender in
Alwireibse. above mentioned the amount geld to the Company the transmission.of.the Message.
aurtllyrigg
oolzt,nny, over the 7.sritig:,1,1 befordeemed
c nt l
rceased
frtitr
,ttiri ozseteoafi,t;lieer=s4I
!,1,%sme pht_o its dest nation, it may be entrusted

eotatb

_

CLARENCE H. MACKAY, President.

line of

G.

G. WARD, Vice-President and General Manager.

ALBERT BECK, Secretary,

the public are recommended to hand in their Messages at the Company's Stations, where receipts are given for amounts paid.
,41essages are also received at all Postal Telegraph Stations,' but in order to insure transmission by the Commercial Cable
Company, the forms upon which Telegranis are written should beinarked " Via Commercial." This Indication will be signalled
free.
All important Messages should be repeated, for which an additional quarter rate Is charged.

DIRECT CONNECTION WITH
COMMERCIAL PACIFIC CABLE, COMMERCIAL CUBA CABLE, CANADIAN PACIFIC TELEGRAPHS, HALIFAX AND BERMUDAS
AND DIRECT WEST INDIA CABLES, NEWFOUNDLAND CABLE, BRITISH PACIFIC CABLE, AND ALASKAN CABLES.

Njit.40

has four
nor J THIS Company and MOSTOcean Cables terminating in New York City.United States.
The SHORTEST
RELIABLE route between England and the




REPUBLIQUE FRANcAISE.

C) service.

1

rfriT_IE.f1-121 A %AltAir

POSTES ET TELEGRAPHES.

BENJAMIN STRONG MORGAN
HARJES-BOULEVARD

Timbre /

te:
A

fl

a date.

HAUSSMANN PARIS
t4e'9
EL

ORIGINS.

NumEno.

GRATUIT, Le factour dolt dellvrer nnidcApIsse
n

.0t. charge fig

DX

,P6.1..

9000110

A ENTION8 DE SERVICE.

LONDON 369 35 28! 1M40
IIAHINGTON CABLE GOVERNORS COMMITTEE ALLOTMENT

REPORT

SATISFACTORY YORK RECEIVED VAULT CONTRACT CLEARING HOUSE
PURCHASED FIVE
SURPLUS.RESERVES ONE THREEFIVE MILLIONS
= JAY .
MILLION NEW YORKS WESTERMAN SAILS TOMORROW




--




Foitm Bo.

STATES

DIRECT U
ANGLO -AMERICAN

WESTERN UNION

No.

WESTERN UNION

YV RAM
CAB
kb

Service Instructions.

No.

aW

Time Received.

Receiving Ottic0.
see back of Form for Telephoike Number.

Via Direct.
Handed in

L

.

k

t.s. G it 8 ie

BS-40,
,

No. ot Wonds.

A

MAIM LAh

I

ar

1'- MAR 1916

774,7,7
i.<7 "

No inquiry respecting tyAs Message can be attended to without the production or this paper.




To
C.

,

\-V140

L'C'est-ell,,,

Please hand your Reply direct to this Office.

IAA TELEGRAPH-CABLE SYSTLA

THE WESTERN

THE LARGEST TELEGRAPH AND CABLE SYSTEM IN EXISTENCE.

8 DUPLEX ED ATLANTIC CABLES.
OVER 25,500

OFFICES AND 1,500,000 MILES OF WIRE.

Direct Wires from Cable Stations to all the principal commercial centres in
Great Britain, United States and Canada, and Direct connection with Central
America, West Indies, South America, Australia, New Zealand, Fanning, Fiji, and
Norfolk Islands.
DIRECT AND EXCLUSIVE CONNECTION WITH MEXICO.

RECEIVING OFFICES IN THE UNITED KINGDOM :LONDON:
1, Old Broad Street, E.C.

.

3761 Wall

63, Old Broad Street, E.C.
3316
48a, Gresham House, Old Broad St., E.C. .. 704
21, Royal Exchange, E.C.
... 9117
39, 40, Mark Lane, E.C. 1070, 1384 Avenue, 3762
1050 Avenue
20. Mark Lane, B.C. ...
.

.

East India Avenue, E.C.

.

3. G3, 614

The Baltic, St. Mary Axe, E.C. 976 Avenue, 6974 Central
34, Throgmorton Street, E.C.
-368 Wall
1830 Central
1, Drapers' Gardens, E.C.
4119 City
10, Holborn Viaduct, E.C.
Donington House, Norfolk Street, W.C.
3717
1155 Gerrard
34, 35, Southampton St., Strand, W.C.
3598
2, Charing Cross, S.W.... ...
5, Royal Opera Arcade, Pall Mall, S.W. .. 3073 Regent
3716 Victoria
34, Victoria Street, S.W.
984 Hop
48, Tooley Street, S.E....
.

Genera; Offices

Telephone Nos.

Telephone Nos

-

LIVERPOOL: D 6, Exchange Buildings
..
Cotton Exchange

2274 Central
(Private

Branch
Exchange).

BRISTOL: Canada House, Baldwin Stre:

309 Central

'BRADFORD 10, Forster Square
...
DUNDEE 1, Panmure Street
EDINBURGH 50, Frederick Street

1351 Central

GLASGOW: 23, Waterloo Street

'771 Bradford
400
771
,,
(Private
Branch

Exchange).
...
LEITH Exchange Buildings
MANCHESTER 30, Brown Street

NEWCASTLE-ON-TYNE

1, Side

600 Leith
1455 City
1329 Central
'189 West

WEST HARTLEPOOL: Exchange Buildings,
Mainsforth Terrace ). Hartlepool

WESTERN UNION KOUSE, 22, GREAT WINCHESTER STREET, LONDON, E.O.
TELEPHONE No.: 800 LONDON WALL (Private Branch Exchange)

PRINCIPAL CONTINENTAL OFFICES AND AGENCIES:4, Weesperzijde.
4, Avenue de Keyser.
49, Canal des Recollets.
BARCELONA: 57, Calle Caspe.
96, Paseo de Gracia
BERGEN:
Post Box, 166.
CHRISTIANIA : 4, Prinsensgade.
COPENHAGEN 4, Jernbanegade.
HAMBURG:
4, Grosse Allee.
AMSTERDAM
ANTWERP:

HAVRE
MADRID

NAPLES
PARIS

118, Boulevard Strasbourg.
Calle Valenzuela 10.
Via Marina Nuova, 14/18.
1, Rue Auber.

Rue Caumartin.
Piazza di Spagna.
Drottninggatan 3.
IV. Stumpergasse, 48.
Pelikanstrasse, 22.
37,

ROME
STOCKHOLM
VIENNA
ZURICH

49,50,

The public are recommended to hand in their Telegrams at the Company's Stations, where free receipts are
given for the amounts charged.
Telegrams for this Company's Cables are also received at all Post Office Telegraph Stations ; but in order
to insure transmission by the Western Union Telegraph-Cable System, the forms upon which Telegrams are written
should be marked " Via Western Union," " Via Anglo " or "Via Direct." This indication is signalled free of charge.
Cable addresses are registered free of charge.
All important Telegrams should be repeated, for which an additional quarter rate is charged.




to-

'

-

e

:

IN

"Is

WEST RN UNION

DIRECT UNITED ST TES

ANGLO -AMERICAN
No.

'

L

RAM

Service Instructions.

Receiving Orrice.

Time Received.

See back of Form for Telephone Number.

Nia Western Union.
Handed in at

No. of Words.

No inquiry respecting this Message can be attended to without the production

To




(.1.

I
A-t

c

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,

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t-'.

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THE WESTERN UNION TELEGRAPH-CABLE SYSTEM.
-

THE LARGEST TELEGRAPH AND CABLE SYSTEM IN EXISTENCE.

8 DUPLEXED ATLANTIC CABLES.
OVER

25,500 OFFICES AND 1,5oo,000 MILES OF WIRE.

Direct Wires from Cable Stations to all the principal commercial centres in
Great Britain, United States and Canada, and Direct connection with Central
America, West Indies, South America, Australia, New Zealand, Fanning, Fiji, and
Norfolk Islands.
DIRECT AND EXCLUSIVE CONNECTION WITH MEXICO.

RECEIVING OFFICES IN THE UNITED KINGDOM :Telephone Nos,

Telephone Nos.

LONDON

Old Broad Street, E.C.
... 3761 Wall
63, Old Broad Street, E.C.
... 3316
48a, Gresham House, Old Broad St., E.C.
704
21, Royal Exchange, E.G.
... 9117
39, 40. Mark Lane, E.C. 1070, 1384 Avenue, 3762
..
20. Mark Lane, E.C.
1050 Avenue

2274 Central

LIVERPOOL: D 6, Exchange Buildings
Cotton Exchange ...

(Private

B
Branch
c
Exchange).

.

East India Avenue, E.C.

...

3763, 614

The Baltic, St. Mary Axe. E.C. 976 Avenue, 6974 Central
1368 Wall
34, Throgmorton Street, E.C.
I, Drapers' Gardens, E.C.
1830 Central
4119 City
10, Holborn Viaduct, E.C.
Donington House, Norfolk Street, W.C.
3717
1155 Gerrard
34, 35, Southampton St., Strand, W.C.
3598
Charing Cross, S.W....
5, Royal Opera Arcade, Pall Mall, S.W.
3073 Regent
3716 Victoria
34, Victoria Street, S.W. ..,
984 Hop
48, Tooley Street, S.E....
.

.

BRISTOL: Canada House, Baldwin Street
BRADFORD: 10, Forster Square
...
DUNDEE: 1, Panmure street
EDINBURGH 50, Frederick Street

309 Central
771 Bradford

1351 Central
400
(1
"1'rivare

GLASGOW: 23, Waterloo Street

Br,anch

Exchange).

LEITH Exchange Buildings
MANCHESTER: 31, Brown Street
NEWCASTLE-ON-TYNE

1, Side

WEST HARTLEPOOL: Exchange Buildings,
Mainsforth Terrace

)

600 Leith
1455 City
1329 Central
789 West

Hartlepool

General Offices - WESTERN UNION HOUSE, GREAT WINCHESTER STREET, LONDON, E.G.
TELEPHONE No.: 800 LONDON WALL (Private Branch Exchange).

PRINCIPAL CONTINENTAL OFFICES AND AGENCIES:AMSTERDAM: 4, Weesperzijde.
4, Avenue de Keyser.
ANTWERP:

Canal des Recollets.
57, Calle Caspe.
96, Paseo de Gracia.
CHRISTIANIA: 4. Prinsensgade.
COPENHAGEN Vesterbrogade 19.
HAMBURG.
4, Grosse Allee.
HAVRE:
118, Boulevard Strasbourg.
49,

BARCELONA

MADRID:

NAPLES:
PARIS:
ROME:
STOCKHOLM:

VIENNA:

ZURICH:

Calle Valenzuela 10.
Via Marina Nuova, 14/18
1, Rue Auber.
87, Rue Caumartin.
49,50. Piazza di Spagna.

Droaninggatan 3.
IV. Stumpergasse, 48.
Pelikanstrasse, 22.

The public are recommended to hand in their Telegrams at the Company's Stations, where free receipts are
given for the amounts charged.
Telegrams for this Company's Cables are also received at all Post Office Telegraph Stations ; but in order
to insure transmission by the Western Union Telegraph-Cable System, the forms upon which Telegrams are written
charge.
should be marked " Via Western Union," "Via Anglo " or " Via Direct." This indication is signalled free of
Cable addresses are registered free of charge.
All important Telegrams should be repeated, for which an additional quarter rate is charged.




6-

c13

e

WEST

UNION
DIRECT UNITED ST TES

ANGLO -AMERICAN
No.

RAM

CAB

'

Time Received.

Service Instructions.

Receiving Orrice.
See back of Form for Telephone Number.

(Via Western Union.

1/

Handed in at

/1/ 7I
/(
1

No. of Words.

KO

/:%

Poo et

VtAt

I /1

o

co.

No inquiry respecting this Message can be attended to without the production

To




c.

v

\

'',

.
*

THE WESTERN UNION TELEGRAPH-CABLE SYSTEM,
THE LARGEST TELEGRAPH AND CABLE SYSTEM IN EXISTENCE.

-

8 DUPLEX ED ATLANTIC CABLES.
OVER 25,500 OFFICES AND 1,500,000 MILES OF WIRE.
Direct Wires from Cable Stations to all the principal commercial centres in
Great Britain, United States and Canada, and Direct connection with Central
America, West Indies, South America, Australia, New Zealand, Fanning, Fiji, and
Norfolk Islands.
DIRECT AND EXCLUSIVE CONNECTION WITH MEXICO.

RECEIVING OFFICES IN THE UNITED KINGDOM :LONDON :

Telephone Nos.

Telephone Nos.

1, Old Broad Street, E.C.
3761 Wall
63, Old Broad Street, E.C.
... 3316
48a, Gresham House, Old Broad St., B.C. ... 704
21, Royal Exchange, E.C.
... 9117
39, 40, Mark Lane, B.C. 1070. 1384 Avenue, 3762
20. Mark Lane, E.C.
1050 Avenue
.

East India Avenue, E.G.

...

...

3763, 614

The Baltic, St. Mary Axe, E.C. 976 Avenue, 6974 Central
34, Throgmorton Street, E.C.
1368 Wall
Drapers' Gardens, E.C.
1830 Central
10, Holborn Viaduct, E.C.
.
4119 City
Donington House, Norfolk Street, W.C.
3717
34. 35, Southampton St., Strand, W.C.
1155 Gerrard
Charing Cross, S.W.... ...
3598
5, Royal Opera Arcade, Pall Mall, S.W.
3073 Regent
3716 Victoria
34, Victoria Street, S.W. ...
48, Tooley Street, S.E....
984 Hop

General Offices

( 2274 Central

LIVERPOOL: D 6, Exchange Buildings
Cotton Exchange .

(Private

J

BRISTOL: Canada House, Baldwin Street
BRADFORD: 10, Forster Square
DUNDEE: 1, Panmure Street
EDINBURGH 50, Frederick Street

Branch
Exchange).

309 Central
'771 Bradford

1351 Central
400
7'71

(Private

GLASGOW: 23, Waterloo Street

Br4ncli

lli{ Exchange).

LEITH: Exchange Buildings
MANCHESTER 31, Brown Street
NEWGAbTLE-ON-TYNE

...

1, Side

WEST HANTLEPOOL: Exchange Buildings,
Mainsforth Terrace)

600 Leith
1455 City
1329 Central
'789 West

Hartlepool

WESTERN UNION HOUSE, GREAT WINCHESTER STREET, LONDON, E.G.
TELEPHONE No.: 800 LONDON WALL (Private Branch Exchange).

PRINCIPAL CONTINENTAL OFFICES AND AGENCIES:AMSTERDAM: 4, Weesperzijde.
ANTWERP:
4, Avenue de Keyser.

49, Canal des Recollets.
57, Calle Gaspe.
96, Paseo de Gracia.
CHRISTIANIA: 4. Prinsensgade.
COPENHAGEN Vesterbrogade 19.
HAMBURG.
4, Grosse Allee.
HAVRE:
118, Boulevard Strasbourg.

MADRID:

NAPLES:
PARIS:

BARCELONA

ROME:

Calle Valenzuela 10.
Via Marina Nuova, 14/18.
1, Rue Auber.
37, Rue Caurnartin.

49,50, Piazza di Spagna.
IV. Stumpergasse, 48.
Pelikanstrasse, 22.

STOCKHOLM: Drottninggatan 3.
VIENNA;

ZURICH:

The public are recommended to hand in their Telegrams at the Company's Stations, where free receipts are
given for the amounts charged.
Telegrams for this Company's Cables are also received at all Post Office Telegraph Stations; but in order
to insure transmission by the Western Union Telegraph-Cable System, the forms upon which Telegrams are written
should be marked "Via Western Union," "Via Anglo " or "Via Direct." This indication is signalled free of charge.
Cable addresses are registered free of charge.
All important Telegrams should be repeated, for which an additional quarter rate is charged.




oa

(-3

AN G LO

WESTERN UNION
No.

CAB

Service Instructions

ERICAN
DIRECT UNITED ST

RAM

Time Received.

Via Anglo.

Receiving Office 0*
See back of Form for Telephone Number.

,/
Nio. of Words.

No inquiry respecting this Message can be attended to without the production of this paper.

To




I

-Tric

Please hand your Reply direct to this Office

THE WESTERN UNION TELEGRAPH-CABLE SYSICM.
THE LARGEST TELEGRAPH AND CABLE SYSTEM IN EXISTENCE.

DUPL,EXED ATLANTIC CABLES.
OVER 25,500 OFFICES AND 1,500,000 MILES OF WIRE.
Direct Wires from Cable Stations to all the principal commercial centres in
Creat Britain, United States and Canada, and Direct connection with Central

America, West Indies, South America, Australia, New Zealand, Fanning, Fiji, and
Norfolk Islands.
DIRECT AND EXCLUSIVE CONNECTION WITH MEXICO.

RECEIVING OFFICES IN THE UNITED KINGDOM:
LONDON:
1, Old Broad Street, B.C.
63, Old Broad Street, B.C.

Telephone No,

Telephone Nos.

3761 Wall
3316

48a, Gresham House, Old Broad St., E.C.
704
21, Royal Exchange, E.C.
.., 9117
39, 40, Mark Lane, E.C. 1070, 1384 Avenue, 3762
20. Mark Lane, E.C.
... 1050 Avenue

.

East India Avenue, E.C.

...

3763, 614

916 Avenue, 6974 Central
34, Throgmorton Street, E.C.
1368 Wall
Drapers' Gardens, E.C.
1830 Central
10, Holborn Viaduct, E.C.
4119 City
Donington House, Norfolk Street, W.C.
3717
1155 Gerrard
34, 35, Southampton St., Strand, W.C.
Charing Cross, S.W.... ...
3598
5, Royal Opera Arcade, Pall Mall, S.W.
3073 Regent
34, Victoria Street, S.W.
3716 Victoria
48, Tooley Street, S.E....
984 Hop
The Baltic, St. Mary Axe, B.C.

' 2274 Central

LIVERPOOL: D 6, Exchange Buildings
..
Cotton Exchange

(Privato

Branch
Michange).

BRISTOL: Canada House, Baldwin Street
BRADFORD: 10, Forster Square
DUNDEE: 1, Panmure Street
EDINBURGH 50, Frederick Street

309 Central
771 Bradford

1351 Central

i

.

.

GLASGOW 23, Waterloo Street

LEITH Exchange Buildings
MANCHESTER: 31, Brown Street
NEWCASTLE-ON-TYNE

1, Side

(Private
Branch
Szchang,e).

000 Leith
1455 City
1329 Central
'189 west

WEST HARTLEPOOL: Exchange Buildings,
Mainsforth Terrace( Hartlepool
/

General Offices - WESTERN UNION HOUSE, GREAT WINCHESTER STREET, LONDON, E.G.
TELEPHONE No.. 800 LONDON WALL (Private Branch Exchange).

PRINCIPAL CONTINENTAL OFFICES AND AGENCIES:AMSTERDAM: 4, Weesperzijde.
4, Avenue de Keyser.
ANTWERP:

49, Canal des Recollets.
57, Calle Gaspe.
96, Paseo de Gracia.
CHRISTIANIA: 4, Prinsensgade.
COPENHAGEN Vesterbrogade 19.
4, Grosse Allee.
HAMBURG:
HAVRE:
118, Boulevard Strasbourg.
BARCELONA:

MADRID:

NAPLES:
PARIS:
ROME:
STOCKHOLM:
VIENNA:
ZURICH:

Calle Valenzuela 10.
Via Marina Nuova, 14/18.
1, Rue Auber.
37, Rue Caumartin.

49/50, Piazza di Spagna.
Drottninggatan 3.
IV. Stumpergasse, 48.
Pelikanstrasse, 22.

The public are recommended to hand in their Telegrams at the Company's Stations, where free receipts are
for the amounts charged.
Telegrams for this Company's Cables are also received at all Post Office Telegraph Stations ; but in order
to insure transmission by the Western Union Telegraph-Cable System, the forms upon which Telegrams are written
:;iven

should be marked " Via Western Union," "Via Anglo " or " Via Direct." This indication is signalled free of charge.
Cable addresses are registered free of charge.
All important Telegrams should be repeated, for which an additional quarter rote is charged.




ESTFpl UNION
AN dLO -AMERICAN

WESTERN UNION

RAM

CAB

Service Instructions.

No.

DIRECT UNITED
Time Received.

Receiving brfice.°

See back of Form for Te' ',phone, 3rumbei

Via Western Union.
Handed in at

II

0

,04001

00

No. of Words.

*0

et.>
r.

No inquiry respec9ng this Message can be attended to without thavroduction of this paper.

To

j`-c/x.i.t...

Cet-'46.-a

,of

7vc-7t4,4X

ott 7ye_ciiit,
a

--wet

A

}2,/f-64-7,)




ate,

4'142-e-

e4c

1

eit-f
-

Please hand your Reply direct to this Office.

THE:WESTERN UNION TELEGRAPH-CABLE SYSTEM,
**THE LARGEST TELEGRAPH AND CABLE SYSTEM IN EXISTENCE.

..

8°D:UPLEXED ATLANTIC CABLES.
.....PVER 25,500 OFFICES AND 1,5oo,000 MILES OF WIRE.
4

:Direct Wires from Cable Stations to all the principal commercial centres in
Great Britain, United States and Canada, and Direct connection with Central

America, West Indies, South America, Australia, New Zealand, Fanning, Fiji, and
Norfolk Islands.
D!RECT AND EXCLUSIVE CONNECTION WITH MEXICO.

RECEIVING OFFICES IN THE UNITED KINGDOM:-'
LONDON :

1, Old Broad Street, E.C.
63, Old Broad Street, E.C.

Telephone Nos.
... 3761 Wall
... 3316 11
'704
...

48a, Gresham House, Old Broad St., E.C.
21, Royal Exchange, E.C.
9117
39, 40, Mark Lane, E.C. 1070, 1384 Avenue. 3762
20. Mark Lane, E.C.
1050 Avenue
East India Avenue, E.C.
...
3763, 614 I
The Baltic, St. Mary Axe, E.C. 976 Avenue, 6974 Central
34, Throgmorton Street, E.C.
1368 Wall
Drapers' Gardens, E.C.
.. 1830 Central
10, Holborn Viaduct, E.C.
. 4119 City
Donington House, Norfolk Street, W.C. . 3717
34. 35, Southampton St., Strand, W.C.
1155 Gerrard
Charing Cross, S.W....
3598
3073 Regent
5, Royal Opera Arcade, Pall Mall, S.W.
34, Victoria Street, S.W.
3716 Victoria
984 Hop
48, Tooley Street, S.E....

Telephone Nos.

LIVERPOOL: D 6, Exchange Buildings
Cotton Exchange ...

BRISTOL Canada House, Baldwin Street
BRADFORD: 10, Forster Square
DUNDEE: 1, Panmure Street
EDINBURGH 50, Frederick Street

2274 Central

...

(Private

309 Central
771 Bradford

1351 Central

...

400

...

GLASGOW 23, Waterloo Street

1
1

l

LEITH Exchange Buildings

...

MANCHESTER: 31, Brown Street

..

NEWCASTLE-ON-TYNE

1, Side

Branch
Exchange).

1

...

77.
(Private
Branch
Exchange).

600 Leith
1455 City
1329 Central
'789 West

WEST HARTLEPOOL: Exchange Buildings,
Mainsforth Terrace 1 Hartlepool

GeneraI,Offices - WESTERN UNION HOUSE, GREAT WINCHESTER STREET, LONDON, E.G.
TELEPHONE No.: 800 LONDON WALL (Private Branch Exchange).

PRINCIPAL CONTINENTAL OFFICES AND AGENCIES:AMSTERDAM: 4, Weesperzijde.
ANTWERP:
4, Avenue de Keyser,.

49, Canal des Recollets.
57, Calle Caspe.
96. Paseo de Gracia..
CHRISTIANIA: 4, Prinsensgade.
COPENHAGEN: Vesterbrogade 19.
HAMBURG.
4, Grosse Allee.
HAVRE.
118, Boulevard Strasbourg.
BARCELONA

MADRID:

NAPLES:
PARIS:
ROME:
STOCKHOLM:
VIENNA:
ZURICH:

Calle Valenzuela 10.
Via Marina Nuova, 14/18.
1, Rue Auber.
37, Rue Caumartin.

4950, Piazza di Spagna.
Drottninggatan 3.
IV. Stumpergasse, 48.
Pelikanstrasse, 22.

The public are recommended to hand in their Telegrams at the Company's Stations, where free receipts are
given for the amounts charged.
Telegrams for this Company's Cables are also received at all Post Office Telegraph Stations ; but in order
to insure iranSilliSSiOn by the Western Union Telegraph-Cable System, the forms upon which Telegrams are written
should be marked " Via Western Union," "Via Anglo " or " Via Direct." This indication is signalled free of charge.
Cable addresses are registered free of charge.
All important Telegrams should be repeated, for which an additional quarter rate is charged.




O..

or,

No

TORSO.

DIRECT UNITED STATES

ANGLO -AMERICAN

Time Received.

Service Instructions.

No,

Se.
et

Receiving Ornce.
See back of Form for Telephone Number.

Via WesternUnion.
'..(fr

17

Handed in at

)0°

No. of jtvords.

V 7/
No inquiry respeotIn this Message can be attended to without the production of this paper.




TO

/Loy
4)-ex,- ft

(-7-2 t

it.

f-et

p.

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k^"

9
Please

hand your Reply direct to thiS70ffice.

THE WEgtER'N UNION TELECRAPH-CABLE SIVA
THE LARGEST TELEGRAPH AND CABLE SYSTEM IN EXISTENCE.

3 DUPLEX ED ATLANTIC CABLES.
25,500 OFFICES AND 1,5m000 MILES OF WIRE.

OVER

Direct Wires from Cable Stations to all the principal commercial centres in
Great Britain, Un ted States and Cinad
and Direct connection w
America, West Indies, South America, Australia, New Zealand, Fanning, Fiji, and
Norfolk Islands.
DIRECT AND EXCLUSIVE CONNECTION WITH MEXICO.

RECEIVING OFFICES IN THE UNITED KINGDOM :LONDON

'feleptionc Nos.

Teieitimue Nos

1, Old Broad Street, E.G
3761 Wall
63, Old broad Street, E.C.
32'6
48a, Gresham House, Old Broad St., E.C. ... '104
21, Royal Exchange, E.G.
9117
39, 40, Mark Lane, E.C. 1070, 1384 Avenue, 3762 17
... 1050 Avenue
20. Mark Lane, E.C.

East India Avenue, E.C.

..

3763, 614

The Baltic, St. Mary Axe, E.C. 976 Avenue, 6914 Central
34, Throgmorton Street, E.G.
1368 VY all
Drapers' Gardens, E.C.
1830 Central
4119 City
10, Holborn Viaduct, E.C.
3717
Donington House, Norfolk Street, W.C.
1155 Gerrard
34, 35, Southampton St., Strand, W.C.
Charing Cross, S.W...
...
3598
.,
307.3 Regent
5, Royal Opera Arcade, Pall Mall, S.W.
3716 Victoria
34, Victoria Street, S.W.
984 Hop
48, 'I ooley Street. S.E....

Genera! Offices

LIVERPOOL

2274 Central

6, Exchange Buildings
Cotton Exchange

BRISTOL Canada House, Baldwin Street
BRADFORD: 10, Forster Square
DUNDEE: 1, Panmure Street

(Private

Branch
Exchange).

I.

309 Central
771 Bradford
...

1351 Central

EDINBUt. OH . 50. Frederick Street

400

GLASGOW: 23, Waterloo Street

(Private
Branch
Exchange).

LEITH Exchange Buildings
MANCHESTER 31, Brown Street
NEWUATLE-ON-TYNE : 1, Side
WEST HA:ITLEPOOL: Exchange Buildings,

rrt
...

600 Leith
1455 City
1329 Central
'189 West

Maintsforth Terracei Hartlepool

WESTERN UNION HOUSE, GREAT WINCHESTER STHLET, LONDON, E.C.
TELEPHONE No.: 800 LONDON WALL (Private Branch Exchange).

PRINCIPAL CONTINENTAL OFFICES AND AGENCIES:AMSTERDAM
ANTWERP:

4, Vveesperzijde.

4, Avenue de Keyser.
49, Canal des I-cecollets.
BARCELONA: 57, Calle Gaspe
96, Paseo de Gracia.
4,
Prinsensgade.
OH R lT IAN IA
CO,ENHAGEN Vesterbrogade 19.
HAMBURG:
4, Grosse Alice.
118, Boulevard Strasbourg.
HAVRE:

ROME:

Calle Valenzuela 10.
Via Marina NUOVE1, 14/18.
1, Rue Auber.
37, Rue Caumartin.
4960, Piazza di Spagna.

VIENNA:
ZURICH:

IV. Stumpergasse, 48.
Pelikanstrasse,

MADRID:
NAPLES:
PARIS:

STOCKHOLM: Drottninggatan 3,

The public are recommended to hand in their Telegrams at the Company's Stations, where free reonpts are
given for the amounts charged.
Telegrams jor this Company's Cables are also received at all Post Office Telegraph Stations ; bat in order
to insure transmission by the Western Union Telegraph-Cable System, the forms upon which Telegrams are 11,1'11101
should be marked " Via Western Union," " Via Anglo " or " Via Direct." This indication is signalled free of charge.
Cable addresses are registered free of charge.
All important Telegrams should be repeated, for which an additional quarter rate is charged.




UNION
ANGLO AMERICAN

CAB

Service Instructions.

No.

Via Western Union.
Handed in at

DIRECT UNITED ST

RAM

Time Received.

Receiving Orflea,...._
See beck of ror in for Tolophoae ',Jona ber.

/
6 4'

No. at Words.

v cit'491.E Zs(

No inquiry reapecting,this Message can be attended to without the production of this paper.

To




-2/

Oa
N

<0,"

C.7

L/.1

Please hand your Reply direct to this Office.

1 4'

:
THE WESTE1111 UNION

Iti.E.Ciiik:CABLE

THE LARGEST TELEGRAPH AND CABLE SYSTEM IN EXISTENCE.

3 DUPLEX ED ATLANTIC CABLES.
OVER 25,500 OFFICES AND 1,5oo,000 MILES OF WIRE.
Direct Wires from Cable Stations to all the principal commercial centres in
Great Britain, United States and Canada, and Direct connection with Central
America, West Indies, South America, Australia, New Zealand, Fanning, Fiji, and
Norfolk Isla,-Ids.
DIRECT AND EXCLUSIVE CONNECTION WITH MEXICO.

RECEIVING OFFICES IN THE UNITED KINGDOM :LONDON:

Telephone Nos.

Telephone Nos.

I, Old Broad Street, E.C.
... 8761 Wall
63, Old Broad Street, E.C.
3316
48a, Gresham House, Old broad St., B.C. ... 704
.., 9117
21, Royal Exchange, E.C.
39, 40, Mark Lane, E.C. 1070, 1384 Avenue, 3762
1050 Avenue
20, Mark Lane, E.G.

East India Avenue, E.C.

...

3763, 614

The Baltic, St. Mary Axe, E.C. 976 Avenue, 6974 Central
1368 Wall
34, Throgmorton Street, E.G.
Drapers' Gardens, E.C.
1830 Central
4119 City
10, Holborn Viaduct, E.C.
3717
Donington House, Norfolk Street, W.C.
1155 Gerrard
34, 35, Southampton St., Strand, W.C.
Charing Cross, S.W....
3598
5, Royal Opera Arcade, Pall Mall, s.),,r.
3073 Regent
371C Victoria
34, Victoria Street, S.W. ...
984 Hop
48, Tooley Street, S. E....

{

LIVERPOOL: D 6, Exchange Buildings
Cotton Exchange ...

BRISTOL Canada House, Baldwin Street
BRADFORD 10, Forster Square
...
DUNDEE: 1, Panmure Street
EDINBURGH 50, Frederick Street
GLASGOW 23, Waterloo Street

LEITH Exchange Buildings
MANCHESTER 31, Brown Street
NEWCASTLE-ON-TYNE: 1, Side
WEST HARTLEPOOL: Exchange Buildings,

2274 Central
(Private

Branch
Exchange).

309 Centre.:
'771 Bradford
...

1351 Central
400
771
(Private
Branch
Exchange).

600 Leith
1453 City
1329 Central
789 West

Mainsforth terrace i Hartlepool

General Offices - WESTERN UNION HOUSE, GREAT WINCHESTER STREET, LONDON, E.C.
TELEPHONE No.: 800 LONDON WALL (Private Branch Exchange).

PRINCIPAL CONTINENTAL OFFICES AND AGENCIES:AMSTERDAM: 4, Weesperzijde.
4, Avenue de Keyser.
ANTWERP:

49, Canal des Recollets.
57, Calle Caspe.
96, Paseo de Gracia.
CHRISTIANIA: 4, Prmsensgade.
COPENHAGEN: Vesterbrogade 19.
4, Grosse Allee.
HAMBURG.
118, Boulevard Strasbourg.
HAVRE:
BARCELONA:

MADRID:

NAPLES:
PARIS:
ROME:
STOCKHOLM:
VIENNA:
ZURICH:

Calle Valenzuela 10.
Via Marina Nuova, 14 18.
1, Rue Auber.

37, Rue Caumartin.
49,50. Piazza di Spagna.
Drottninggatan 3.
IV. Stumpergasse, 48.
Pellkanstrasse, 22.

The public are recommended to hand in their Telegrams at the Company's Stations, where free receipts are
given for the amounts charged.
Telegrams for this Company's Cables are also received at all Post Office Telegraph Stations, but in order
to insure transmission by ihe Western Union Telegraph-Cable System, the forms upon which Telegrams are written
should be marked " Via Western Union," " Via Anglo " or " Via Direct." This indication is signalled tree of charge.
Cable addresses are registered free of charge.
All important Telegrams should be repeated, for which an additional quarter rate is charged.




Poem

ANGLO-AMERICAN

DIRECT UNITED STATES
i/

RAM

Service Instructions.

No.

/,/

Time Received.

4/

f

''",

Receiving 0.no,.

e back of eorm fo/Telephone Numium.
N

Via Western Union.

1.3c

,S

Handed in at

No. of Words.

so Buomi

IMMO,

it

1

"'

0133C.

\41i

1

0101.10

T.
4
VAT
No inquiry respecting this Message can be attended to without the production of this paper.

To




Ii)

,7?

T

aikytiget

A.P..J1Z

.13

Jo

titivA (Yu

ict/a/kA,-;
h\tAlt-LL

tt,44-

Jt

;;-

-e,L.1,2-Aterrit,4

ccU7L

ipAe

Please hand your Reply direct to this Office.

,

THEIEtreERN UNION TELEGRAPH-CABLE SYSTEM.
THE LARGEST TELEGRAPH AND CABLE SYSTEM IN EXISTENCE.

DUPLEX ED ATLANTIC CABLES.
OVER 25,5o0 OFFICES AND

1,500,000

MILES OF WIRE.

Direct Wires from Cable Stations to all the principal commercial centres in
Great Britain, United States and Canada, and Direct connection with Central
America, West Indies, South America, Australia, New Zealand, Fanning, Fiji, and
Norfolk Islands.
DIRECT AND EXCLUSIVE CONNECTION WITH MEXICO.

RECEIVING OFFICES IN THE UNITED KINGDOM :LONDON :

Telephone Nos.

1, Old Broad Street, E.C.
3761 Wall
63, Old Broad Street, E.C.
3316
48a, Gresham House, Old Broad St., E.C.
704
21, Royal Exchange, E.C.
9117
39, 40, Mark Lane, B.C. 1070 1384 Avenue, 3762
20. Mark Lane, E.G. ...
1050 Avenue

East India Avenue, E.C.

The Baltic, St. Mary Axe, B.C.

...

3763,614

916 Avenue, 6914 Central
34, Throgmorton Street,
1368 Wall
Drapers' Gardens, EX.
1839 Central
10, Holborn Viaduct, E.C.
4119 City
Doningron House, Norfolk Street, W.C.
3717
34, 35, Southampton St., Strand, W.C.
1155 Gerrard
Charing Cross, S.W...
..
3598
5, Royal Opera Arcade, Pall Mall, S.W.
3073 Regent
34, Victoria Street, S.W. ...
3716 Victoria
48, Tooley Street, S.E....
984 Hop

Telephone NOS.

LIVERPOOL 136, Exchange Buildings
Cotton Exchange ...

2274 Central
(Private
Brunch

..Exchmngoi.

BRISTOL Canada House, Baldwin Street
BRADFORD: 10, Forster Square
..
DUNDEE: 1, Panmure Street
EDINBURGH: 60, Frederick Street

309 Central
771 Bradford

1351 Central.

GLASGOW: 23, Waterloo Street

74°:(Friva:i

LEITH Exchange Buildings

600 Leith

Branela

1,,ehange).

MANCHESTER: 31, Brown Street113455
1, Side
Central
WEST HARTLEPOOL: Exchange Buildings,
'789 West
Mainsforth Terrace I Hartlepool
NEWCASTLE-ON-TYNE

7

General Offices - WESTERN UNION HOUSE, GREAT Wit,OHESTER STREET, LONDON, E.9.
TELEPHONE No.: 800 LONDON WALL (Private Branch Exchange)

PRINCIPAL CONTINENTAL, OFFICES AND AGENeMS;--,
AMStEkDAN1
ANTWERP:
BARCELONA:

CHRISTIANIA:
COPENHAGEN:
HAMBURG:
HAVRE:

Weesperzijae
4, Avenue de Keyser.
49, Canal des Hecollets,
57, Calle Gaspe.

96, Paseo de Gracia.
4, Prinsensgade.
Vesierbrogacie 19.
4. Grosse Allee.
118, Boulevard Strasbourg.

Calle Valenzuela 10.
Via Marina Nuova. 1418.
1, Rue Auber.
37, Rue Caumartin.
49/50. Piazza di Spagna.
ROME:
STOCKHOLM: Drottninggatan 3.
IV. Stumpergasse, 48.
VIENNA:
Pelikanstrasse, 22,
ZURICH:
MADRID:

NAPLES:
PARIS:

The public are recommended to hand in their Telegrams at the Company's Stations, where free receipts are
given for the amounts charged.
Telegrams for this Company's Cables are also received at all Post Office Telegraph Stations ; but in order
to insure transmission by the Western Union Telegraph-Cable System, the forms upon which Telegrams are written
should be marked " Via Western Union," " Via Anglo " or " Via Direct." This indication is signalled free of charge.
Cable addresses are registered free of charge.
All important Telegrams should be repeated, for which an additional quarter rate is charged.







FEDERAL RESERVE BANK
OF NEW YORK
March 11, 1916.

Dear Governor Strong:

We did not write you last week because we imagined
that if you were leaving on the 20th there would be little
if any chance of your getting our letter.

Paul was rather unhappy at the thought of your being
away at the same time he was away, hence the cablegrams we sent
you last week about your plans, not that we ourselves did not
also want to knom what you were doing and when we might see you
back.

I was glad to get your cablegram on Monday stating that

you wished to stay over longer, and communicated it to Paul.
He said that of course you must exercise your own judgment about
it.

Later in the day we had a meeting of the Executive Committee

on a rediscount, and their feeling was unanimous that you should
not feel hurried but stay over as long as you wanted to finish
the work you had in mind.

I therefore cabled. you to this effect.

I also cabled you yesterday about the Netherlands Bank
inTuiry and our answer.

We had heard nothing further as yet.

I had a long talk with Alexander a few days ago about the situation here.

He says he sees nothing whatever in it to be alarmed

about.

The decrease in the reserves of the clearing house banks
seems to have been the result to some extent of large payments to
interior cities.

RESERVE BANK OF NEW YORK




.2.

3/11/16.

Benj. Strong, Jr.

On March 8th Hendricks and I were invited to Washington
by Mr. Delano to hear Mr. Rowe of Cincinnati explain a collection
plan, about which he has been talking with the Board.
attended.

McKay also

The plan entailed immediate debit and credit within

the district and deferred debit and credit between districts, with
the provision which we have always had in mind, that member banks

might send checks direct to the reserve bank of which the paying
The Board was much

bank is a member, in order to shorten time.

pleased apparently with the plan and is very unwilling to get away
from the "immediate" idea.

The Board I think has an idea that this

is the first "plan" which has been suggested to it and that the
I understand that a

governors have never worked out any "plan".

draft has been prepared of the Attorney General's opinion and is
likely to be in favor of compulsory remittance at par.

As a result of this meeting, Governor Hamlin wrote to all
the governors yesterday asking them to have a meeting and report a
definite plan to the Board on or before April 10th.

Curtis is com-

municating with the governors now on the subject.
A week ago to-day I went to Buffalo, stopping in Rochester
in the morning to call on the banks there.

We had a very satisfact-

ory meeting in Buffalo, although most of the banks there are state
banks.

Four country banks in t.b0.4 district are converting into state
A.

banks.

I think you have been advised of the transfer of Fairfield
County, Conn. to District No. 2.

This brings in fifteen new banks.

Three other counties which applied for transfer have had consideration
of their applications postponed.

ESERVE BANK OF NEW YORK

3

Benj. Strong, Jr.

3/11/16.

Everything is running along satisfactorily in the bank.
We are all well and busy.

Rates for money are a shade firmer and

of course business is continuing at a tremendous rate.

If you

continue in your purpose to sail Tarch 25th, this will probably
be the last letter I can write you, but I hope you will not feel
it necessary to hurry home for anything in the office, unless it

be that you want to be present at the governors' meeting, of which
we will advise you definitely when the date has been set.
With best regards,
Faithfully yours,

Benj. Strong, Jr., Esq.,
c/o Morgan, Grenfell & Co.,
London, England.

PJ/LCE




STATEMENT OF THE CONDITION
OF THE

FEDERAL RESERVE BANK OF NEW YORK
At the close of business Max. 100 1916.

R&SOTIRCES

Gold Coin and Gold Certificates:
Gold Settlement Fund .

.

0

0

6

.

597900000000

Gold in vaults.......00000.0157.221477050
Total Gold Reserve . 0 . 0 .
. 0
0
0

0
0
0
$16300119377.50

.

Legal tender notes, silver certificates
and subsidiary coin

0 40000000 'woo

109569395065

00000000*A.000

$173)580773O15

0000 0

Total Reserve .

Bills Discounted and Bought:
Commercial Paper . 0 . 0
Bank Acceptances 0 . 0 0 0
Total

0

.

0000 0

Investments

0
0

0

0

2909957090

0

0

1303610597.86

0

.

0 1000,0000000

0

0

Municipal Warrants .

.

0

.

0

0

.

0

.

0

0

0

0.

1306520556.76

.

1302230399.13

0

149501,410000

0

3770169081

.

$21503350327.65
0

000000000000006 o 000.000

$ 110122,250000

Federal Reserve Notes (net)
All other

0

0

.

0

.

0

0

0

0

resouroes00000000.00000000 0
TOTAL RESOURCES 0 00000000 . .

.

0

o

0

LIABILITIES
Capital

00

Reserve Deposits (net)
Government Deposits.

0

0

.

0

.

0

0

0

. .

. 00 0

0

0,0000000

.TOTAL LIABILITIES .

0

.

0

0

0

0

0

o

o

0

.

0

0

0

0

0

00

1690225013533

0

. .

0

0

0

.0

.
Federal reserve notes outstanding 0
Against which there is deposited with
Federal Reserve Agent:
0
Gold and lawful money




.

0

Due to other Federal reserve banks (net)
All other liabilities

0

0

0

0

0

20484y030091

0

0 000

796220545033
0

0

0

0
40891,366.28

0

o

$2100335 0
327,85

0

0 0

47507070000,00

475,707,000,00

f

WEST
ANGLO -AMERICAN

UNION-e-r:
WESTERN UNION

RAM

CAB

Service Instructilns.

No.

DIRECT UNITED STATES
Receiving Office.

1:,inRe Received.

See back of Form for relepixose N amber.

Via Western Hrded in at

No, of Words.

' iJ4",' '[fl
No inquiry respecting this Message can be attended to without the production of this paper.




To

49-71.

/

fter2R,A,

(f.>

/Ley.
fue.,4'vrte,`
46FAleN,19/Z/

Please hand

yourleply

d

ct td this Office.

100
:,

I

5

IS

THE WESTERN UNION TELECRAPH-CABLE SYS1?.M.
THE LARGEST TELEGRAPH AND CABLE SYSTEM IN EXISTENCE.

DUPLEXED ATLANTIC CABLES.
OVER 25,500 OFFICES AND 1,500,000 MILES OF WIRE.
Direct Wires from Cable Stations to all the principal commercial centres in
Great Britain, United States and Canada, and Direct connection with Central
America, West Indies, South America, Australia, New Zealand, Fanning, Fiji, and
Norfolk Islands.
DIRECT AND EXCLUSIVE CONNECTION WITH MEXICO.

RECEIVING OFFICES IN THE UNITED KINGDOM :Telephone Nos.

LONDON:
1, Old Broad Street, E.C.

...

3316
63, Old Broad Street, E.C.
48a, Gresham House, Old Broad St., E.G. ... 704
... 9117
21, Royal Exchange, E.C.
39, 40, Mark Lane, E.C. 1070, 1384 Avenue, 3762
.
1050 Avenue
20. Mark Lane, E.C.
.

East India Avenue, E.C.

3763, 614

The Baltic, St. Mary Axe. E.C. 976 Avenue, 6974 Central
1368 Wall
34, Throgmorton Street, E.C.
1830 Central
Drapers' Gardens, E.C.
4119 City
10, Holborn Viaduct, E.C.
3717
Donington House, Norfolk Street, W.C.
1155 Gerrard
34, 35, Southampton St., Strand, W.C.
3598
...
Charing Cross, S.W._
3073 Regent
5, Royal Opera Arcade, Pall Mall, S.W.
3716 Victoria
34, Victoria Street, S.W. ...
984 Hop
48, Tooley Street, S.E....

General Offices

Telephone Noa,

.

3761 Wall

LIVERPOOL: D 6, Exchange Buildings

Cotton Exchange ...

WM Central
(Private

...

Branch
Exchange).

BRISTOL: Canada House, BaldWill Street

309 Central

BRADFORD: 10, Forster Square
...
DUNDEE: 1, Pa.nmure Street
EDINBURGH 50, Frederick Street

1351 Central

771 Bradford

400
'171

(Private
Branch
Exchange).

GLASGOW: 23, Waterloo Street

LEITH: Exchange Building.
MANCHESTER: 31, Brown Street
NEWCASTLE-ON-TYNE 1, Side
WEST HARTLEPOOL: Exchange Buildings,

...

Mainsforth Terrace,

600 Leith
1455 City
1329 Central
789 West

Hartlepool

WESTERN UNION HOUSE, GREAT WINCHESTER STREET, LONDON, EX.
TELEPHONE No.: 800 LONDON WALL (Private Branch Exchange).

PRINCIPAL CONTINENTAL OFFICES AND AGENCIES:AMSTERDAM. 4, Weesperzijde.
4, Avenue de Keyser.
ANTWERP.

49, Canal des Recollets.
57, Calle Gaspe.
96, Paseo de Gracia.
CHRISTIANIA: 4, Prinsensgade.
COPENHAGEN: Vesterbrogade 19.
4, Grosse Allee.
HAMBURG:
118, Boulevard Strasbourg.
HAVRE:
BARCELONA

MADRID:
NAPLES:
PARIS:
ROME:
STOCKHOLM
VIENNA:

ZURICH:

Calle Valenzuela 10.
Via Marina Nuova, 14118.
1, Rue Auber.
37, Rue Caumartin.
49/50, Piazza di Spagna.

Drottninggatan 3.

IV. Stumpergasse, 48.
Pelikanstrasse,

The public are recommended to hand in their Telegrams at the Company's Stations, where free receipts arc
given for the amounts charged.
Telegrams for this Company's Cables are also received at all Post Office Telegraph Stations ; but in order
to insure transmission by the Western Union Telegraph-Cable System, the forms upon which Telegrams are written
should be marked "Via Western Union," "Via Anp,lo " or "Via Direct." This indication is signalled free of charge.
Cable addresses are registered free of charge.
All important Telegrams should be repeated, for which an additional quarter rate is charged.




,, ,

loam

,

UNiON
ANGLO-AMERICAN
Service Instructions.

No.

DIRECT UNITED S

RAM

Time Received.

4/1
Jai

Receiving Office.
See back of Form for Telephone N amber.

Via Western Union.

Q:2

Handed in at

No. of Words.

1 JiMT;
,

No inquiry respecting this,Message can be attended to without the production of this paper.




To
71,

tu.

U4/1.1

/

yrt

/111/406,..

iltAt

CA 6-1

4.

Please hand your Reply direct to this Office.

._

#.

THEVE'STERII UNION TELEGRAPH-CABLE SYSL:M.
THE LARGEST TELEGRAPH AND CABLE SYSTEM IN EXISTENCE.

8 DUPLEX ED ATLANTIC CABLES.
OVER 25,500 OFFICES AND 1,500,000 MILES OF WIRE.
Direct Wires from Cable Stations to all the principal commercial centres in
Great Britain, United States and Canada, and Direct connection with Central
America, West Indies, South America, Australia, New Zealand, Fanning, Fiji, and
Norfolk Islands.
DIRECT AND EXCLUSIVE CONNECTION WITH MEXICO.

RECEIVING OFFICES IN THE UNITED KINGDOM :LONDON:

Telephone Nos.

Telephone Nos.

I, Old Broad Street, E.G.
... 3761 Wall
63, Old Broad Street, E.C,
... 3316
48a, Gresham House, Old Broad St., E.G.
704
9117
21, Royal Exchange, E.G.
39, 40, Mark Lane, E.C. 1070, 1384 Avenue, 3762
.
1050 Avenue
20. Mark Lane, E.C.

East India Avenue, E.C.

3763, 614

The Baltic, St. Mary Axe, E.C. 976 Avenue, 6974 Central
34, Throgmorton Street, E.G.
1368 Wall
Drapers' Gardens, E.C.
1830 Central
4119 City
10, Holborn Viaduct, E.C.
3717
Donington House, Norfolk Street, W.C.
34, 35, Southampton St., Strand, W.C.
1155 Gerrard

Charing Cross, S.W.....

3598

5, Royal Opera Arcade, Pall Mall, S.W.
34, Victoria Street, S.W. ...
48, Tooley Street, S.E....

3073 Regent
3716 Victoria
984 Hop

LIVERPOOL D 6, Exchange Buildings

Cotton Exchange

2274 Central
(Private

Bianchi
Exchange).

.

BRISTOL: Canada House, Baldwin Street
BRADFORD 10, Forster Square
...
DUNDEE: 1, Panmure Street
EDINBURGH: 50, Frederick Street

309 Central
771 Bradford

1351 Central
400
'171

GLASGOW

23, Waterloo Street

...
LEITH: Exchange Buildings
MANCHESTER 31, Brown Street

NEWCASTLE-ON-TYNE 1, Side
WEST HARTLEPOOL: Exchange Buildings,

Mainsfo rth Terrace,

(Private
Branch
Exchange).
BOO Leith

1455 City
1329 Central
789 West

Hartlepool

General Offices - WESTERN UNION HOUSE, GREAT WINCHESTER STREET, LONDON, E.C.
TELEPHONE No.

800 LONDON WALL (Private Branch Exchange).

PRINCIPAL CONTINENTAL OFFICES AND AGENCIES:AMSTERDAM: 4, Weesperzijde.
4, Avenue de Keyser.
ANTWERP.
49, Canal des Recollets.
BARCELONA
57, Calle Caspe.
96, Paseo de Gracia.
CHRISTIANIA: 4, Prinsensgade.
Vesterbrogade 19.
COPENHAGEN
HAMBURG
HAVRE:

4. Grosse Alice.
118, Boulevard Strasbourg.

MADRID:
NAPLES:
PARIS:
ROME:
STOCKHOLM:
VIENNA:
ZURICH:

Calle Valenzuela 10.
Via Marina Nuova, 14,18.
1, Rue Auber.
37, Rue Caurnartin.
49,50. Piazza di Spagna.

Drottninggatan 3.

IV. Stumpergasse, 48.
Pelikanstrasse, 22.

The public are recomnzended to hand in their Telegrams at the Company's Stations, where free receipts are
given for the amounts charged.
Telegrams for this Company's Cables are also received at all Post Office Telegraph Stations ; but in order
to insure transmission by the Western Union Telegraph-Cable System, the forms upon which Telegrams are written
shn-",1 be marked " Via Western Union," " Via Anglo " or " Via Direct." This indication is signalled free of charge.
Cable addresses are registered free of charge.
All important Telegrams should be repeated, for which an additional quarter rate is charged.




1

WEST RN
ANGLO -AMERICAN
No.

WESTERN UNION

CAB

Service Instructions.

DIRECT UNITED STATES

RAM

Time Received.

Receiving Office.
See back of Form for Telephone Number.

Via Western Union.
Handed in at

No. of' Words.

No inquiry respecting this Message can be attended to without the production of this paper.

To




'

1

Ltittc--.A47GC-111,

Please hand your Reply direct to this Office.

L,,

to

'

THE:WESTERN UNION TELECRAPH-CABLE SYSIat
THE LARGEST TELEGRAPH AND CABLE SYSTEM IN EXISTENCE.

8 DUPLEX ED ATLANTIC CABLES.
OVER 25,500 OFFICES AND 1,5013,000 MILES OF WIRE.
Direct Wires from Cable Stations to all the principal commercial centres in
Great Britain, United States and Canada, and Direct connection with Central
America, West Indies. South America, Australia, New Zealand, Fanning, Fiji, and
Norfolk Islands.
DIRECT AND EXCLUSIVE CONNECTION WITH MEXICO.

RECEIVING OFFICES IN THE UNITED KINGDOM :Telephone Nos,

Telephone Nov.

LONDON :

1, Old Broad Street, E.C.
... 3761 Wall
63, Old Broad Street, E.G.
... 3316
48a, Gresham House, Old Broad St., E.C. . 704
21, Royal Exchange, E.G.
.
..
9117
39, 40. Mark Lane, E.C. 1070, 1384 Avenue, 3762
20. Mark Lane, E.C.
1050 Avenue

East India Avenue, E.C.

.

3763, 614

The Baltic, St. Mary Axe, E.C. 976 Avenue, 6974 Central
1368 Wall
34, Throgmorton Street, E.G.
I. Drapers' Gardens. E.C.
1830 Central
10, Holborn Viaduct, E.C.
4119 City
Donington House, Norfolk Street, W.C.
3717
1155 Gerrard
34, 35, Southampton St., Strand, W.C.
2, Charing Cross, S.W...
3598
5, Royal Opera Arcade, Pall Mall, S.W.
3073 Regent
3716 Victoria
34, Victoria Street, S.W.
984 Hop
48, Tooley street, S.E....
.

General Offices

2274 Central

LIVERPOOL D 6, Exchange Buildings
Cotton Exchange ..

(Private
Branch
Exchange).

BRISTOL: Canada House, Baldwin Street
BRADFORD 10, Forster Square
..
DUNDEE: 1, Panmure Street
EDINBURGH: 50, Frederick Street

309 Central
'771 Bradford

1351 Central
400
771
(Private
Branch
Exchange).

GLASGOW: 23, Waterloo Street

LEITH: Exchange Buildings
MANCHESTER: 31, Brown Street
NEWCASTLE-ON-TYNE

...

1, Side

600 Leith
1455 City
1329 Central
789 West

WEST HARTLEPOOL: Exchange Buildings,
Mainsforth Terrace; Hartlepool
I

WESTERN UNION HOUSE, GREAT WINCHESTER STREET, LONDON, E.C.
TELEPHONE No,: 800 LONDON WALL (Private Branch Exchange).

PRINCIPAL CONTINENTAL OFFICES AND AGENCIES:4, Weesperzijde.
4, Avenue de Keyser.
49, Canal des Recollets.
BARCELONA
57, Calle Gaspe.
96, Paseo de Gracia.
4, Prinsensgade.
CHRISTIANIA
COPENHAG EN Vesterbrogade 19.
HAMBURG
4, Grosse Allee.
118, Boulevard Strasbourg.
HAVRE.
AMSTERDAM:
ANTWERP

MADRID:

NAPLES:
PARIS:

ROME:
STOCKHOLM
VIENNA:
ZURICH:

Calle Valenzuela 10.
Via Marina, Nuova,
1, Rue Auber.
37, Rue Caumartin.

49/50. Piazza di Spagna.
Drottninggatan 3.
IV. Stumpergasse, 48.
Pelikanstrasse, 22.

The pubbc are recommended to hand in their Telegrams at the Company's Stations, where free receipts are
given for the amounts charged.
Telegrams for this Company's Cables are also received at all Post Office Telegraph Stations ; but in order
to insure transmission by the Western Union Telegraph-Cable System, the forms upon which Telegrams are written
shr--'4 be marked ' Via Western Union," " Via Anglo " or " Via Direct." This indication is signalled free of charge.
Cable addresses are registered free of charge.
All important Telegrams should be repeated, for which an additional quarter rate is charged.




-)

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0

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WEST Risi U NION
i

----

ANGLO -AMERICAN

WESTERN UNION

V71,7

CAB

(

DIRECT UNITED STATFS
A.

RAM

Service Instructions.

No.

FORM S.

No

.

-

Receiving °dice.

Time Received.

See back of Form for Telephone N umber.

Via Western Union.
Handed in at

No. of Wor

No inquiry respecting this Message can be attended to without the production of this paper.

To

/

,

711.,r
4v.:4../4,:7,kr,
.

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Pease hand your Reply direct to this Office.

a ee

V

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1

*

a

**

THE WESTERN UNION TELEGRAPH-CABLE SYSTEM.
THE LARGEST TELEGRAPH AND CABLE SYSTEM IN EXISTENCE.

DUPLEXED ATLANTIC CABLES.
OVER

25,500 OFFICES AND 1,500m0 MILES OF WIRE.

Direct Wires from Cable Stations to all the principal commercial centres in
Great Britain, United States and Canada, and Direct connection with Central
America, West Indies, South America, Australia, New Zealand, Fanning, Fiji, and
Norfolk Islands,
DIRECT AND EXCLUSIVE CONNECTION WITH MEXICO.

RECEIVING OFFICES IN THE UNITED KINGDOM :--LONDON

Telephone Noe.

Telephone Nos.

1, Old Broad Street, E.G.
63, Old Broad Street, E.C.

...

48a, Gresham House, Old Broad St., B.C. ..

3761 Wall
704
9117

21, Royal Exchange, E.C.
.
ft
39, 40, Mark Lane, E.C. 1070, 1384 Avenue, 3762
20. Mark Lane, E.C.
1050 Avenue
East India. Avenue, E.C.
... 3763, 614
The Baltic, St. Mary Axe, E.C. 976 Avenue, 6974 Central
34, Throgmorton Street, E.C.
1368 Wall
Drapers' Gardens, E.C.
1830 Central
4119 City
10, Holborn Viaduct, E.C.
Donington House, Norfolk Street, W.C.
3717
34, 35, Southampton St., Strand, W.C.
1155 Gerrard
Charing Cross, S.W...
3598
3073 Regent
5, Royal Opera Arcade, Pall Mall, S.W.
3716 Victoria
34, Victoria Street, S.W.
984 Hop
48, Tooley Street, S.E....
.

2274 Central

LIVERPOOL: D 6, Exchange Buildings

(Private
Branch

Cotton Exchange

BRISTOL: Canada House, Baldwin Street
BRADFORD: 10, Forster Square
..
DUNDEE 1, Panmure Street
EDINBURGH 50, Frederick Street

Rxellange).

309 Central
771 Itradfoca
..

1351 Central
400
7'71

iPrivato

GLASGOW: 23, Waterloo Street

Tiranch

ls:xehange).

LEITH Exchange Buildings
MANCHESTER 31, Brown Street
NEWCASTLE-ON-TYNE 1, side
WEST HARTLEPOOL: Exchange Buildings,

Mainsforth Terrace I

600 Leith
1455 City
1329 Central
'789 West

Hartlepool

General Offices - WESTERN UNION HOUSE, GREAT WINCHESTER STREET, LONDON, E.C.
TELEPHONE No.: 800 LONDON WALL (Private Branch Exchange).

PRINCIPAL CONTINENTAL OFFICES AND AGENCIES:
4, Weesperzijde.
4, Avenue de Keyser.
49, Canal des Recollets.
57, Calle Caspe.
BARCELONA
96, Paseo de Gracia..
CHRISTIANIA : 4, Prinsensgade.
COPENHAGEN: Vesterbrogade 19.
4, Grosse Allee.
HAMBURG:
118, Boulevard Strasbourg.
HAVRE:
AMSTERDAM
ANTWERP

MADRID:
NAPLES:
PARIS:
ROME:
STOCKHOLM
VIENNA:
ZURICH:

Calle Valenzuela 10.
Via Marina Nuova, 14; 18.
1, Rue Auber.
37, Rue Caumartin.
49/50, Piazza di Spagn a.

Drottninggatan 3,

IV. Stumpergasse, 48.
Pelikanstrasse, 22.

The public are recommended to hand in their Telegrams at the Company's Stations, where free receipts are
given for the amounts charged.
Telegrams for this Company's Cables are also received at all Post Office Telegraph Stations ; but in order
to insure transmission by the Western Union Telegraph-Cable System, the forms upon which Telegrams are written
should be marked " Via Western Union," "Via Anglo " or Via Direct." This indication is signalled free of charge.
Cable addresses are registered free of charge.
All important Telegrams should be repealed, for which an additional quarter rate is charged.




r
114

-

STRONG SOINS MORGAN HARJES
BOULEVART, HAUSSMANN ',AkIS
D

.

HP

de reeet..--.

-= Reponse payee.

TU..... =Telegramme collationhe.

MP.....

Remettre en mains propres.

"IPMPRIPPMPIENare JOUR... =Remettre seulement
le jour.
OUVERT=Remettre ouvert.

Dane les telegrammes imprimes en caracteres romaine par l'appareil telegraphique , le premier 0-ointre
qui figure spree le nom du lieu d'origine est un numero d'ordre, le second. indique le unnibre de mots
taxes, les suites designeid la date el l'heure de depot.

Dane le service interieur et dans lee relations avec certains pays etrangers, l'heure de depot est

indiquee an moyen des chiffres de 0 a 21.

Timbr
A date.

L'ilat n'est soumis 0 (incline responsabilile 0 raison du service de la correspondance privie par la voie
fdle'graphique. ( Lei du 29 novembre 1850, art. 6.)
0111C1,5.

LONDON 1839 22

ER 0.

NOMBRE

Da

moTs

D ATE.

1161i1E

12 1115 M

NEWYORK CABLE JI_HEN DO

YOU REACH AMSTERDAM CABLE BRIEFLY

PLANS SITUATION HERE UNCHANGED = JAY




MENTIONS DE SERVI'0,44.6

DEPO T.

=

YOU

Misc. 34

FF'''''4L RESERVE BANK
IEW YORK

(TO

CONFIRMATION OF TELEGRAM
We have today telegraphed you as follows :

Benj. Strong,
Care Uorgan,
Loudon.
Clearing conference governors called. April tenth,
lld
V,1th date fixed sheal naveaccoscary to complete "'our work.
Storki
stponeixint conference tili your arrival.
cat
:)le received.

y,A1 now fix definite sailing date either April first er later if
Joy.

AT/vaa
Charge to

8-2



Peueral Reserve bank,
6 Cedur Etrret, ew York.

E MAILED)

a

6

g

"

t 'DIRECT UN
A-NGLO -AMERICAN

CAB
Service Instructions.

No.

ST TE

1.7

-

WESTERN UN

RA

7/°
Receiving 0 ince.

Time Received.

See back of Form for

lephone Number.

Via Direct.
Handed in ac.

No. ot Words,

6 MAR 1916
LUNG,.

7 Li/Q-1
No inquiry respecti

this Message can be attended to without the production or this paper.

To

Crutuei

L/6-0,--tsd

I 1 4°A-4
"7-

49,-Lmr-L,,,A/LLZ
.61

--(Az

44,-AV
/1.19

attt




I.

, jsz

Please hand your Reply direct to this Office.

#

THE WESTERN UNION TELEGRAPH-eBiiiCSYSTFIL
THE LARGEST TELEGRAPH AND CABLE SYSTEM IN EXISTENCE.

8 DUPLEXED ATLANTIC CABLES.
OVER 25,500 OFFICES AND 1,500,000 MILES OF WIRE.

Direct Wires from Cable Stations to all the principal commercial centres in
Great Britain, United States and Canada, and Direct connection with Central
America, West Indies, South America, Australia, New Zealand, Fanning, Fiji, and
Norfolk Islands.
DIRECT AND EXCLUSIVE CONNECTION WITH MEXICO.

RECEIVING OFFICES IN THE UNITED KINGDOM :LONDON:
1, Old Broad Street, E.C.
63, Old Broad Street, E.C.

3761 Wall
3316
704
... 9117
.

48a, Gresham House, Old Broad Gt., E.C.
21, Royal Exchange, E.C.
39, 40, Mark Lane, E.C. 1070, 1384 Avenue, p762
20. Mark Lane, E.C.
1050 Avenue
East India Avenue, E.C.
.
363.614
The Baltic, St. Mary Axe, E.C. 976 Avenue, 6974 Central
34, Throgmorton Street, E.C.
1368 Wall
1, Drapers' Gardens, E.C.
1830 Central
10, Holborn Viaduct, E.C.
4119 City
Donington House, Norfolk Street, W.C.
3717
1155 Gerrard
34, 35, Southampton St., Strand, W.C.
2, Charing Cross, S.W....
.
- 3598
5, Royal Opera Arcade, Pall Mall, S.W.
3073 Regent
34, Victoria Street, S.W. ...
3716 Victoria
984 Hop
48, Tooley Street, S.E....

General Offices -

Telephone Nos.

Telephone Nos

2274 Central

LIVERPOOL D 6, Exchange Buildings
Cotton Exchange .

(Private

Branch
Exchange).

BRISTOL: Canada House, Baldwin Stre,
BRADFORD: 10, Forster Square
DUNDEE 1, Panmure Street

309 Central
771 Bradford

1351 Central

EDINBURGH: 50, Frederick Street

400
7'71

(Private
Branch
Exchange).

GLASGOW: 23, Waterloo Street

LEITH Exchange Buildings
MANCHESTER 30, Brown Street
NEWCASTLE-ON-TYNE

1, Side

..

..

WEST HARTLEPOOL: Exchange Buildings,
Mainsforth Terrace

600 Leith
1455 City
1329 Central
'789 West

Hartlepoo:

WESTERN UNION HOUSE, 22, GREAT WINCHESTER STREET, LONDON, E.C.
TELEPHONE No.: 800 LONDON WALL (Private Branch Exchange).

PRINCIPAL CONTINENTAL OFFICES AND AGENCIES:AMSTERDAM
ANTWERP:
BARCELONA:
BERGEN
CHRISTIANIA
COPENHAGEN
HAMBURG:

4, Weesperzijde.
4, Avenue de Keyser.
49, Canal des Recollets.
57, Calle Gaspe.

96, Paseo de Gracia
Post Box, 166.
4, Prinsensgade.
4, Jernbanegade.
4, Grosse Allee.

HAVRE:
MADRID:

NAPLES.
PARIS:
ROME.
STOCKHOLM
VIENNA:
ZURICH.

118, Boulevard Strasbourg.
Calle Valenzuela 10.
Via Marina Nuova, 14/18.
1, Rue Auber.

37, Rue Caumartin.
49,50, Piazza di Spagna.
Drottninggatan 3.
IV. Stumpergasse, 48.
Pelikanstrasse, 22.

The public are recommended to hand in their Telegrams at the Company's Stations, where free receipts are
given for the amounts charged.
Telegrams for this Company's Cables are also received at all Post Office Telegraph Stations ; but in order
to insure transmission by the Western Union Telegraph-Cable System, the forms upon which Telegrams are written
should be marked " Via Western Union," " Via Anglo " or "Via Direct." This indication is signalled free of charge.
Cable addresses are registered free of charge.
All important Telegrams should be repeated, for which an additional quarter rate is charged.




FEDERAL RESERVE BANK
OF NEW YORK

::_arch 17th, 1916.

Dear Governor:

I have received your lettensfrom Paris as follows: February
18th, 19th and 25th.

We have all been much interested in hearing

what you have been doing and the last one arrived on the morning of
our Board Meeting of March 15th and was read to the Board.

The

feeling of all of us has been that you should not feel hurried in
your important work abroad and ought to take sufficient time to complete it satisfactorily.
In the office here everything has gone along quietly.

Mr. Kenzel has dictated something about the purchase of gcvernment
bonds and the acceptance market, so I will not review in regard to
these items.

Shortly after r. Hendricks returned from Washington, as
I wrote you last week, all the Governors received letters from Gov-

ernor Hamlin asking for a,definite clearing plan not later than
April 10th.

Thinking that you were likely to arrive substantially

before that time, a meeting was called in Washington for April 10th.
When we learned that you were going to postpone sailing, I asked
Governor Hnmlin if he would postpone the meeting until your arrival.
In the absence of Delano and Harding, Governor Hamlin wired that he




OFNEWYORK

-2-

March 17, 1916.

Benj. Strong, Jr., Esq.

and Mr. Miller felt that the meeting should be held on the 10th, as
called, in order to make progress, but that no plan would be apt to

be finally determined upon untRafter your return.

Accordingly, I

have been sending you a number of cablegrams of late and have just
now received yours of to-day stating definitely that you will sail
on April 1st on the St. Paul.

I intend to call up Mr. Aiken and

ask him if he will not suggest to the Board that that the meeting
should be postponed a few days to be sure of your being here.

Another matter of interest is that in connection with
which I sent you a cablegram through Er. Carr, describing our terms
and conditions under which tentative transactions have already taken
place, although we have not heard definitely as to the acceptance of
our conditions.

Mrs. McLaren says she has written you apout Dr. Allis going to the Phillipines and I gathered when in Washington that this
was only a six months' leave of absence, but I spent last Sunday
morning with Mr. Seligman, looking over his economical library, and
he told me that they expected to have Dr. Willis come on very soon
and take up definite work with the new Columbia School of Business.
Said, however, that this was confidential.
I cabled you a few days ago about the death of Mrs. Cann.
About three weeks ago, she was in _Lontreal and decided suddenly to

have an operation for some intestinal trouble.

Mr. Cann went up

for a day or two and on returning reported that everything was going




/04,07,r,

NEW YORK

March 17th, 1916.

°.3.7...._

Benj. Strong, Jr., Esc.

well.

Apparently, things continued to go well until Tuesday of this

week when he suddenly received a telegram from his brother-in-law
saying his wife was not so well and he had better come to Montreal.

He went up on the night train with his daughter, but Mts. Cann died
early in the morning before he arrived.
Nova Scotia.

She was buried .somewhere in

Mt. Cann will not be back at the office for a few days.

He has six children of which the youngest, as you remember, is about
six months of age.

Mt. Locke was not at our meeting on Wednesday, not having
Mr. Treman was

fully recovered from his recent attack of grippe.

present but looked pretty badly, having just recovered from an attack of quinsy Sore throat.

Rates are a shade firmer than they were when you went away,
although not enough to make any real difference.

We are advising you

each week of the Clearing House surplus reserves.
Last Friday, Messrs, ':loodwatd, Kenzel, Higgins and I went

up to the"Cutter-Burnernplace on 34th Street

t?/see

a test of the

various kinds of steel linings under the"Cutter-Burner"test.

They

cut a hole about b inohes in diameter through the ordinary 3 inch
soft and hard steel linings in about 2 minutes,

hole

They then cut a

through the same amount of steel and 1/8 of an inch of copper

in about 2;1a- minutes.

Then they tried to cut through 2 inches of

steel and one inch of the special material prepared by the Yorke
Safe & Lock Company, and it took them 32 minutes to put a hole 1
inches in diameter through this.




The burner delivers heat at about

March 17, 1916,

...rF NEW YORK

,/
Benj, Strong, Jr., Esq.

6:00 degrees and is a remarkable instrument of destruction.
//

We are

using a special form of concrete which, after all, combined with our
and
watchman service, our electrical protection will, I believe, be the
main strength of the vault.
We had an interesting talk last Saturday with Mr. Thralls,

formerly cashier of the Federal Reserve Bank of Kansas City, but now
secretary of the Clearing House and Bational Bank Sections of the
American Bankers Association.

He has told us something of the inter-

nal conditions in that bank which, as you may imagine, was very interesting.

The government work is going on steadily.

We are now tak-

ing checks from all the banks, but have heard nothing more about the
transfer of postal deposits to us.

Mr. Hendricks is going to Chicago next week to work with
Mr. McKay on the preparation of the details of the clearing plan.

Whether it is finally made voluntary or mandatory should not affect
the details greatly.

In order to ascertain the views of our member

banks upon the relative advantages of immediate and deferred credit,

we are addressing a brief letter to all members of the collection
system outside of the City of New York, asking for their views and
should have some interesting replies by the middle of next week.

At the meeting of Directors on February 14th, I spoke
of the organixation of an Information Department and said that we
both favored it but had not definitely determined upon the man to
take charge of it.




The suggestion was very adversely received

NEW YORK

March 17th, 1916.

-5-

Benj. Strong, Jr., Esq.

by all of the Directors except Messrs. Treman, Towne and Thompsen,
Mr. Peabody not expressing himself.

Afterwnrds, I ta

Woodward and think he is not now unfavorable to it, but he suggests
that we first find our man and then bring it up as a definite appointment instead of proposing the matter in principle, which I think
is an excellent idea, and am getting a number of names and looking
them up so as to have more strings to our bow than the gentlemen
suggested by Mr. Jefferson.

I thought you might run across just

the right man in England, although I doubt whether an

Englishman

would exactly fill the bill for us.

We are all very glad that you are having such an interesting time and I hope that some rest has

COMB

with it.

Certainly,

the change of scene and environment must have been a recreation if
not an actual rest.

I do not need to say that we shall be mighty

glad to see you back, although if things run along as they are

running now, there does not seem to be a great deal to do here in
the way of bank routine.

The discounts are getting a little more

active with the opening of. Spring, but the volume is very small.
The reason I, asked you to write me about the collection

proceedure in London Lnd'Paris was so that we might have it on hand
in case you did not get back before the Governors' meeting.
With kindest. regards,

Faithfully yours,

Benj. Strong, Jr., Esq.,
Care Messrs, Morgan, Grenfell & Co.,
22 Old Broad Street,
London, England.

PJ/VCM
Dictated by 1:r. Jay but
signed in his absence,




.90AIIEW YORK

-

arch 17, 1916.

Strong, Jr., Esq.

P. S.

Aiken and
Since writing the above I telephoned

to-night about postponing
he is going to write to Governor Hamlin
the Governors meeting.




P. J.

No

WEST

UNION

ANGLOAMERICAN

DIRECT UNITED STATES

RAM

CAB.

Service Instructions.

No.

CV.
o

fteceived.

Receiving 0.110,
See back of Form forle lephone Number.

Via Western U
\101

Handed in at

No of Words
81
^'

1

No inquiry respecting this Message can '134o attended to without the production o

To
6."

:eq.
-.;
-

-,(-i-f--

g,

,,,, AA

_

4-4'.?--7-/fr.
6,

.,4.-t2.....-v4,._ i

:C

ff'P

Please hand your Reply direct to this Office.

C

9MR. lgir
LON




Ma'am a

THE WESTERN UNION TELECRAPH-CABLE SYSTEM.
THE LARGEST TELEGRAPH AND CABLE SYSTEM IN EXISTENCE.

8 DUPLEXED ATLANTIC CABLES.
OVER

25,500

OFFICES AND 1,500,000 MILES OF WIRE.

Direct Wires from Cable Stations to all the principal commercial centres in
Great Britain, United States and Canada, and Direct connection with Central
America, West Indies, South America, Australia, New Zealand, Fanning, Fiji, and
Norfolk Islands.
DIRECT AND EXCLUSIVE CONNECTION WITH MEXICO.

RECEIVING OFFICES IN THE UNITED KINGDOM :LONDON:
I, Old Broad Street, E.C.
63, Old Broad Street, E.C.

Wall

48a, Gresham House, Old Broad St., E,C.
21, Royal Exchange, E.C.
It
39, 40, Mark Lane, E.C. 1070, 1384 Avenue, 3762
20. Mark Lane, E.G.
... 1050 Avenue

East India Avenue, E.C.

...

3763, 614

The Baltic, St. Mary Axe, E.C. 976 Avenue, 69`r4 Central
34, Throgmorton Street, E.C.
1368 Wall
I, Drapers' Gardens, E.C.
1830 Central
10, Holborn Viaduct, E.C.
4119 City
Donington House, Norfolk Street, W.C.
3717
34, 35, Southampton St., Strand, W.C.
1155 Gerrard
2, Charing Cross, S.W....
...
3598
It
5, Royal Opera Arcade, Pall Mall, S.W.
3073 Regent
34, Victoria Street, S.W.
3716 Victoria

48, Tooley Street, SE....

General Offices

Telephone Nos,.

Telephone Nos.
... 3761
... 3316
704
...
... 9117

........984 Hop

2274 Central

LIVERPOOL: D 6, Exchange Buildings
Cotton Exchange ...

(Private

Branch
Bachange).

BRISTOL: Canada House, Baldwin Stree,
BRADFORD: 10, Forster Square
...
DUNDEE: 1, Panmure Street
EDINBURGH: 50. Frederick Street
GLASGOW: 23, Waterloo Street

309 Central
771 Bradford

1351 Central
400

1771
(Privet',

Branch
B,change).

LEITH: Exchange Buildings
..
MANCHESTER 31, Brown Street
NEWCASTLE-ON-TYNE

1, Side

WEST HARTLEPOOL: Exchange Buildings,

/

600 Leith
1455 City
1329 Central
789 West

fdainsforth Terrace r Hartlepool

WESTERN UNION HOUSE, GREAT WINCHESTER STREET, LONDON, E.C.
TELEPHONE No,: BOO LONDON WALL (Private Branch achange).

PRINCIPAL CONTINENTAL OFFICES AND AGENCIESAMSTERDAM: 4, Weesperzijde.
ANTWERP:
4, Avenue de Keyser.
CHRISTIAN IA

49, Canal des Recollets.
57, Calle Gaspe.
96, Paseo de Gracia.
4, Prinsensgade.

HAMBURG
HAVRE:

4, Grosse Allee.
118, Boulevard Strasbourg.

BARCELONA

COPENHAGEN : Vesterbrogade 19.

MADRID:

NAPLES:
PARIS:
ROME:
STOCKHOLM:
VIENNA:
ZURICH:

Calle Valenzuela 10.
Via Marina Nuova, 14118.
1, Rue Auber.

37, Rue Caumartin.
49;50, Piazza di Spagna.
Drottninggatan
IV. Stumpergasse, 48.
Pelikanstrasse, 22.

The public are recommended to hand in their Telegrams at the Company's Stations, where free receipts are
given for the amounts charged.
Telegrams for this Company's Cables are also received at all Post Office Telegraph Stations; but in order
to insure transmission by the Western Union Telegraph-Cable System, the forms upon which Telegrams are ivrittest
should be marked " Via Western Union," "Via Anglo " or " Via Direct." This indication is signalled free of charge.
Cable addresses are registered free of charge.
All important Telegrams should be repeated, for which an additional quarter rate is charged.




Foam

UNION
ANGLO -AMERICAN

DIRECT UNITED ST

Service Instructions.

No.

No/(rlfr
Receiving Office.

Time Received.

/

Via Western Union.

See buck of Form for Tetephone Number.

J

Handed in at

/, 0:1N 04,

No. of Words.

'14/ 'IND 13110AD 81

2 NiMt,19144 c.

41

P%11:141.1,_.,

No inquiry respecting this Message can be attended to without the production of this paper.

To

Ci"

#1.

Lf-PW(

1L,t60-114-,t4.




-eot

e,r

e"."-.47

L
C

14..c

-1-1114-!7>

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Ca.."(

4,*

Please hand your Reply direct to this Office.

et-

tN_

THE WESTERN UNION TELEGRAPH CABLE SYSTEM.
THE LARGEST TELEGRAPH AND CABLE SYSTEM IN EXISTENCE.

8 DUPLEX ED ATLANTIC CABLES.
OVER 25,500 OFFICES AND 1,500,000 MILES OF WIRE.
Direct Wires from Cable Stations to all the principal commercial centres
G6.7..t Britain, United States and Canada, and Direct connection with Central

-Arne:Ica, West Indies, South America, Australia, New Zealand, Fanning, Fiji, and
Norfolk Islands.
",

a

e

DIRECT AND EXCLUSIVE CONNECTION WITH MEXICO.

RECEIVING OFFICES IN THE UNITED KINGDOM :LONDON:
I, Old Broad Street, E.C.
68, Old Broad Street, E.C.

Telephone So,

Telephone Nos.

3761 Wall
>9

48a, Gresham House, Old Broad St., E.C.
704
... 9117 ft
21, Royal Exchange, E.C.
39, 40, Mark Lane, E.C. 1070, 1384 Avenue, 3762
20. Marc Lane, E.C.
1050 Avenue
3763, 614
East India A venue, E.C.
The Baltic, St. Mary Axe, EX. 976 Avenue, 6974 Central
34, Throgmorton Street, E.G.
1368 Wall
1830 Central
Drapers' Gardens, E.C.
4119 City
10, Holborn Viaduct, E.C.
Doningion House, Norfolk Street, W.C.
3717
1155 Gerrard
34, 35, Southampton St., Strand, W.C.
Charing Cross, S.W....
3598
3073 Regent
5, Royal Opera Arcade, Pall Mall, S.W.
.
3716 Victoria
34, Victoria Street, S.W.
984 Hop
48, Tooley Street, S.E....
.

LIVERPOOL: D 6, Exchange Buildings

Cotton Exchange ..
BRISTOL: Canada House, Baldwin Street
BRADFORD: 10, Forster Square
DUNDEE 1, Panmure Street
EDINBURGH 50, Frederick Street

2274 Central
(Prim.°
Branch
Exchange).

309 Central
711 Bradford

1351 Central
400
7'71

(Private

GLASGOW: 23, Waterloo Street

Bra ne

Exchange,.

LEITH Exchange Building
MANCHESTER: 31, Brown Street
NEWCASTLE-ON-TYNE

1, Side

600 Leith
1455 City
1329 Central

789 west
WEST HAHTLEPOOL: Exchange Buildings,
Mainsforth Terrace I Hartlepool

General Offices - WESTERN UNION HOUSE, GREAT WINCHESTER STREET, LONDON, E.G.
TELEPHONE No. : 800 LONDON WALL (Private Branch Exchange).

PRINCIPAL CONTINENTAL OFFICES AND AGENCIES:AMSTERDAM:
ANTWERP:
BARCELONA:

4, Weesperzijde.
4, Avenue de Keyser.
49, Canal des Hecollets.
57, Calle Caspe

96, Paseo de Gracia.
CHRISTIANIA: 4, Prinsensgade.
COPENHAGEN: Vesterbrogacie 19.
4, Grosse Allee.
HAMBURG:
118, Boulevard Strasbourg.
HAVRE:

MADRID:

NAPLES:
PARIS:
ROME:
STOCKHOLM:
VIENNA:
ZURICH:

Calle Valenzuela 10.
Via Marina Nuova, 14/18.
1, Rue Auber.

37, Rue Caumartin.
49/50, Piazza di Spagna.
Drottninggatan 3.
IV. Stumpergasse, 48.
Pellkanstrasse, 22.

The public are recommended to hand in their Telegrams at the Company's Stations, where free receipts are
given for the amounts charged.
Telegrams for this Company's Cables are also received at all Post Office Telegraph Stations ; but in order
to insure transmission by the Western Union Telegraph-Cable System, the forms upon which Telegrams are written
should be marked " Via Western Union," " Via Anglo " or "Via Direct." This indication is signalled free of charge.
Cable addresses are registered free of charge.
All important Telegrams should be repeated, for which an additional quarter rate is charged.




WEST R,:N7 UNION
DIRECT UNITED ST TES

ANGLO -AMERICAN

RAM

Time Received.

Service Instructions.

No.

'if:Receiving, OiCce.

c

Scisok oPTS;orra for Telephone_Nnin' be,

' I x '''`i

Via Western Union.

47
No. of

Handed in at

a

ords.
4

:Adel
d

(i)

No inquiry respectilthis Message can be attended to without the production of this paper.

,

To




c

-

-1.-Ltpt

97

1,4.71,:ze

C 17_1

-72
4f"

t

Please hand your Reply direct to this Office.

z

v

THE WESTERN UNION TELEGRAPH-CABLE SYSI
THE ' LARGEST TELEGRAPH AND CABLE SYSTEM IN EXISTENCE.

s.DUPLEXED ATLANTIC CABLES.
,

OVER 25,500 OFFICES AND 1,5oo,000 MILES OF WIRE.

Direct Wires from Cable Stations to all the principal commercial centres in
Dreat Britain, United States and Canada, and Direct connection with Central

Avirica, West Indies, South America, Australia, New Zealand, Fanning, Fiji, and
Norfolk Islands.
DIRECT AND EXCLUSIVE CONNECTION WITH MEXICO.

RECEIVING OFFICES IN THE UNITED KINGDOM :LONDON

felephone Nos.

Telephone Nos.

Old Broad Street, E.C.
.. 3761 Wall
.. 3316
63, Old Broad Street, E.C.
48a, Gresham House, Old Broad St., D.C. ... '704 ft
9117
21, Royal Exchange, E.C.
39, 40, Mark Lane, E.C. 1070, 1384 Avenue, 3762
... 1050 Avenue
20. Mark Lane, E.C.

East India Avenue, E.C.

3763, 614

The Baltic, St. Mary Axe, E.C. 976 Av enue, 6974 Central
1368 W all
34, Throgmorton Street, E.C.
1830 Central
I, Drapers' Gardens, B.C. .
.
4119 City
10, Holborn Viaduct, E.C.
3717
Donington House, Norfolk Street, W.0
1155 Gerrard
34, 35, Southampton St., Strand, W.C.
3598
Charing Cross, S.W....
,,
3073 Regent
5, Royal Opera Arcade, Pall Mall, S.Y1
3716 Victoria
34, Victoria Street, S.W.
984 Hop
48. Tooley Street, S.E....

2274 Central

LIVERPOOL D 6, Exchange Buildings
Cotton Exchange ..

(Private
Branch

Exchange).

309 Central

BRISTOL Canada House, Baldwin Street
BRADFORD 10, Forster Square
...
DUNDEE 1, Panmure Street
EDINBURGH 50, Frederick Street

771 Bradford

1351 Central
400
771
(I'rivare

GLASGOW: 23, Waterloo Street

Branch
Exchange).

LEITH Exchange Buildings
MANCHESTER 31, Brown Street
NEWCASTLE-ON-TYNE: 1, Side
WEST HARTLEPOOL: Exchange Buildings,

I

Mainsforth Terrace f

600 Leith
1455 City
1329 Central
799 West

General Offices - WESTERN UNION HOUSE, GREAT WINCHESTER STREET, LONDON, E.C.
TELEPHONE No.: 800 LONDON WALL (Private Branch Exchange).

PRINCIPAL CONTINENTAL OFFICES AND AGENCIES:AMSTERDAM; 4, Weesperzijde.
4, Avenue de Keyser.
ANTWERP

49, Canal des Recollets.
57, Calle Gaspe.
96. Paseo de Gracia.
CHRISTIANIA 4, Prinsensgade.
COPENHAGEN: Vesterbrogacie 19.
4, Grosse Allee.
HAMBURG
118, Boulevard Strasbourg.
HAVRE:
BARCELONA

MADRID:

NAPLES:
PARIS:
ROME:
STOCKHOLM:
VIENNA:
ZURICH:

Calle Valenzuela 10.
Via Marina Nuova, 14118.
1, Rue Auber.

37, Rue Caumartin.
49/50, Piazza di Spagna.
Drottninggatan 3.
IV. Stumpergasse, 48.
Pelikanstrasse, 22.

The public are recommended to hand in their Telegrams at the Company's Stations, where free receipts are
given for the amounts charged.
Telegrams for this Company's Cables are also received at all Post Office Telegraph Stations ; but in order
to insure transmission by the Western Union Telegraph-Cable System, the forms upon which Telegrams are written
should be marked " Via Western Union," "Via Anglo " or " Via Direct." This indication is signalled free of charge.
Cable addresses are registered free of charge.
All important Telegrams should be repeated, for which an additional quarter rate is charged.




Hartlepool

FORM OD.

Co

3

000

No.

STATES

DIRECT Um
ANGLO AMERICAN

WESTERN

RAM

CAB
Service Instructions.

No,

"tr,

-

Time Received.

Receiving Office.
See back of Form for Telephone Number.

Via Direct.
I-landed in at

No. ot Words.

6'":17

//4

'AB LE

..sk

No inquiry respecting this Message can be attended to without the production o't this paper.

TO I) j---`
:

v--h,

"OA
-

A

(----"c "1-'7
.1

j

A..t21




Usk..

/

i"

.

44)'-c

f./pf

'1'41

c41,

Please hand your Reply direct to this Office.

?-:

THE WESTERN UNION TELECRAPh-GABLE SYS.THE LARGEST TELEGRAPH AND CABLE SYSTEM IN EXISTENCE.

8 DUPLEX ED ATLANTIC CABLES.
OVER 25,500 OFFICES AND 1,500,000 MILES OF WIRE.
Direct Wires from Cable Stations'to all the principal commercial centres in
Great Britain, United States and Canada, and Direct connection with Central
'America, West Indies, South America, Australia, New Zealand, Fanning, Fiji, and
Norfolk Islands.
DIRECT AND EXCLUSIVE CONNECTION WITH MEXICO.

RECEIVING OFFICES IN THE UNITED KINGDOM :LONDON :

Telephone Nos.

Telephone Nos.

I, Old Broad Street, B.C.
3761 Wall
63, Old Broad Street, E.C.
.
3316
48a, C-tsham House, Old Broad St., E.C.
'704
21, Royal Exchange, E.C.
9117
39, 40, Mark Lane, E.C. 1070, 1384 Avenue, 3762
20. Mark Lane, E.C.
... 1050 Avenue

East India Avenue, E.C.

.

3763, 614

The Baltic, St. Mary Axe, E.C. 976 Avenue, 3974 Central
1368 Wall
34, Throgmorton Street, E.C.
1830 Central
Drapers' Gardens, E.C.
4119 City
10, Holborn Viaduct, E.C.
3717
Donington House, Norfolk Street, W.C.
1155 Gerrard
34, 35, Southampton St., Strand, W.C.
Charing Cross, S.W.... ...
3598
3073 Regent
5, Royal Opera Arcade, Pall Mall, S.W.
3716 Victoria
34, Victoria Street, S.W.
984 Hop
48, Tooley Street, S.E....

LIVERPOOL: D 6, Exchange Buildings
Cotton Exchange

BRISTOL. Canada House. Baldwin Street
BRADFORD 10, Forster Square
..
DUNDEE 1, Panmure Street
EDINBURGH 50, Frederick Street

2274 Central
(Private
Branch

Exchange).

309 Central
771 Bradford

1351 Central
400
{ 771

GLASGOW: 23, Waterloo Street

LEITH Exchange Buildings
MANCHESTER: 30, Brown Street
NEWCASTLE-ON-TYNE

1, Side

WEST HARTLEPOOL: Exchange Buildings,
Mainsforth Terrace

,,

(Private
Branch
Exchange).

600 Leith
1455 City
1329 Central
t '789 West

Hartlepool

General Offices - WESTERN UNION HOUSE, 22, GREAT WINCHESTER STREET, LONDON, E.O.
TELEPHONE No.: 800 LONDON WALL (Private Branch Exchange)

PRINCIPAL CONTINENTAL OFFICES AND AGENCIES:AMSTERDAM: 4, Weesperzijde.
ANTWERP:
4, Avenue de Keyser.

49, Canal des Recollets.
57, Calle Caspe.
96, Paseo de Gracia
BERGEN:
Post Box, 166.
R 1ST IAN IA
4, Prinsensgade.
COPENHAGEN: 4, Jernbanegade
HAMBURG:
4, Grosse Allee.
BARCELONA:

HAVRE:
MADRID:
NAPLES
PARIS

ROME
STOCKHOLM
VIENNA:
ZURICH.

118, Boulevard Strasbourg
Calle Valenzuela 10.
Via Marina Nuova, 14/18.
1, Rue Auber.

37, Rue Caumartin.
49/50, Piazza di Spagna.
Drottninggatan 3.
IV. Stumpergasse, 46
Pelikanstrasse, 22.

The public are recommended to hand in their Telegrams at the Company's Stations, where free receipts are
given for the amounts charged.
Telegrams for this Company's Cables are also received at all Post Office Telegraph .Stations; but in order
to insure transmission by the Western Union Telegraph-Cable System, the forms upon which Telegrams are written
should be marked " Via Western Union," " Via Anglo " or " Via Direct." This indication is signalled free of charge.
Cable addresses are registered free of charge.
All important Telegrams should be repeated, Jor which an additional quaricr rate is charged.




-

FORM

D.

No.

AGLO -AMERICAN

WESTERN UNION

AM

CAB
Service Instructions.

No.

Time Received.

Re3eiving 0 rti ce.
See back of Porm for Telephone Number.

Via Direct.
Handed in at

No. ot Words.

No inquiry respecting this Message can be attended to without the production or this paper.
/)

To

i
1

\(----.0




a.....-"f ' ....-4,4-4/...h.,..,
b

./

'

tt,

,....1..e..., ,,A.,,t,..1

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'1'-', -1,...---Ve

it'

,-. ,

ce-

.

If

.4:70 ere,

tr

Please hand your Reply direct to this Office.

,

THE WESTERN UNION TELEGRAPH-CABLE HST%
THE LARGEST TELEGRAPH AND CABLE SYSTEM IN EXISTENCE.

8 DUPLEX ED ATLANTIC CABLF,S.
OVER 25,500 OFFICES AND 1,500,000 MILES OF WIRE.
Direct Wires from Cable Stations.to all the principal commercial centres in
Great Britain, United States and Canada, and Direct connection with Central
America, West Indies, South America, Australia, New Zealand, Fanning, Fiji, and
Norfolk Islands.
DIRECT AND EXCLUSIVE CONNECTION WITH MEXICO.

RECEIVING OFFICES IN THE UNITED KINGDOM :LONDON :

Telephone Nos.

Telephone Nos.

Old Broad Street, E.G.
... 3761 Wall
63, Old Broad Street, E.C.
... 3316
48a, erssham House, Old Broad St., B.C.
704
... 9117
21, Royal Exchange, E.C.
39, 40, Mark Lane, E.C. 1070, 1384 Avenue, 3762
..
1050 Avenue
20, Mark Lane, E.C.

East India Avenue, E.C.

...

3763, 614

The Baltic, St. Mary Axe, E.C. 976 Avenue, 6974 Central
1368 Wall
34, Throgmorton Street, E.C.
I, Drapers' Gardens, E.C.
... 1830 Central
4119 City
10, Holborn Viaduct, E.C.
Donington House, Norfolk Street, W.C. ... 3717
1155 Gerrard
34, 35, Southampton St., Strand, W.C.
3598
Charing Cross, S.W...
3073 Regent
5, Royal Opera Arcade, Pall Mall, S.W.

34, Victoria Street, SW.
48, Tooley Street, S.E....

General Offices

............3716 Victoria
...

984 Hop

2274 Central

LIVERPOOL: D 6, Exchange Buildings

Cotton Exchange

(Private

Branch
Exchange).

.

GRIST6 L : Canada House, Baldwin Street
BRADFORD: 10, Forster Square
...
DUNDEE: 1, Panmure Street
EDINBURGH : 50, Frederick Street

309 Central
771 Bradford

1351 Central
400
'771

(Private
Branch

GLASGOW: 23; Waterloo Street

...{ Exchange).

LEITH Exchange Buildings
NIANGHESTED : 30, Brown Street
NEWCASTLE-ON-7 THE I, Side
WEST HAHTLEPOOL: Exchange Buildings,

1

Mainsforth Terrace I

600 Leith
1455 City
1329 Central
789 West

Hartlepool

WESTERN UNION HOUSE, 22, GREAT WINCHESTER STREET, LONDON, E.G.,
TELEPHONE No.: 800 LONDON WALL (Private Branch Exchange)

PRINCIPAL CONTINENTAL OFFICES AND AGENCIES:AMSTERDAM: 4, Weesperzijde.
4, Avenue de Keyser.
ANTWERP:

HAVRE:
MADRID:

BARC'ELONA

PARIS:

49, Canal des Recollets.
57, Calle Gaspe.
96, Paseo de Gracia
BERGEN;
Post Box, 166.
CHRISTIANIA: 4, Prinsensgade.
COPENHAGEN 4, Jernbanegade
HAMBURG:
4, Grosse Allee.
.

:

NAPLES
ROME.
STOCKHOLM
VIENNA:
ZURICH:

118, Boulevard Strasbourg
Calle Valenzuela 10.
Via Marina Nuova, 14/18.
1, Rue Auber.

37, Rue Caumartin.
49/50, Piazza di Spagna.
Drottninggatan 3,
IV. Stumpergasse, 4d
Pelikanstrasse, 22.

The public are recommended to hand in their Telegrams at the Company's Stations, where free receipts arc
given for the amounts charged.
Telegrams for this Company's Cables are also received at all Post Office Telegraph Stations ; but in order
to insure transmission by the Western Union Telegraph-Cable System, the forms upon which Telegrams are written
should be marked " Via Western Union," " Via Anglo " or " Via Direct." This indication is signalled free of charge.
Cable addresses are registered free of charge.
All important Telegrams should be repeated, for which an additional quarter rate is charged.




,
4

-

DIRECT

Foam (In.

r

bk., I- STATES

ANGLOAMERICAN

WESTER UNION

CAB

Service instructions

WESTERN UNIO

VG RAM
Time Received.

Receiving Orri
ass baok of FOIC11 for 'Niel*

Via Direct.
Handed in at

JNuuibe.

40
I.,4111( LAN

I

29 liAR.1916

No. of Words.
+Le

No inquiry respecting this Message can be attended to without the production of this paper.

To
'EY

I.




C'
.07

d,

e437,--7,1

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C4,-

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efr

-4"

11? be"
.4"rt

Please hand your Reply dire.A to this Office.

datIrd S!4

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L43 4no4i.on

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L.rnaarlsaa Xa!nbu! oN

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71.9,3r

AFWn.

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OVER 25,500 OFFICES AND 1,5oo,000 MILES OF WIRE.
Direct Wires from Cable Stations to all the principal commercial centres in
Great Britain,' United States and Canada, and Direct connection with Central
America, West Indies, South America, Australia, New Zealand, Fanning, Fiji, and
Norfolk Islands.
DIRECT AND EXCLUSIVE CONNECTION WITH MEXICO.

RECEIVING OFFICES IN THE UNITED KINGDOM :LONDON:
1, Old Broad Street, E.C.

3761 Wall

63, Old Broad Street, E.C.

98a, Gesham House. Old Broad St.

3316
B.C.,

.

3763, 614

The Baltic, St. Mary Axe, E.C. 976 Avenue, 6974 Central
Throgmorton Street, E.C.
1366 Wall
Drapers' Gardens, E.C.
1830 Central
10, Holborn Viaduct, E.C.
4119 City
Donington House, Norfolk Street, W .c.
3717
24, 35, Southampton St., Strand, W
1155 Gerrard
Charing Cross, S.W. .
3598
5, Royal Opera Arcade, Pall Mall, E
3073 Regent
34, Victoria Street, S.W.
3716 Victoria
48, Tooley Street, S.E....
984 Hop

( 2274 Central

LIVERPOOL : D 6, Exchange Buildings

1, ranmure Street

EExcThanncge).

1

RISTOL Canada House, Baldwin S:-.reec
RADFORD 10, Forster Square
DUNDEE

(Private

]

Cotton Exchange ...

'704

21, Royal Exchange, E.C.
9117 .,
39, 40, Mark Lane, E.C. 1070, 1254 Avenue, 3762
20. Mark Lane, E.C.
... 1050 Avenue

East India avenue, E.C.

Telephone Nos.

Telephone Nt.

309 Central
771 Bradford

1351 Central

...

EDINBURGH: 50, Frederick Street

400
'171

GLASGOW

(Private
Branch
Exchange).

23, Waterloo Street

LEITH Exchange Buildings
MANCHESTER 30, Brown Street
NEWCASTLE-ON-TYNE 1, Side
WEST HARTLEPOOL: Exchange Buildings,

..

...
!

Mainsforth TetTace)

600 Leith
1955 City
1329 Central
'189 West

Hart leuoal

General Offices - WESTERN UNION HOUSE, 22, GREAT WINCHESTER STREET, LONDON, E.G.
TELEPHONE No.. 800 LONDON WALL (Private Branch Exchange)

PRINCIPAL CONTINENTAL OFFICES AND AGENCIES:-4, Weesperzijde.
4, Avenue de Keyser.
49, Canal des Recollets.
BARCELONA
57, Calle Gaspe.
96, Paseo de Gracia
BERGEN
Post Box, 166.
CHRISTIANIA : 4, Prinsensgade.
COPENHAGEN: 4, Jernbanegade.
HAMBURG
4, Grosse Allee.
AMSTERDAM.

FIAVRE:

ANTWERP

MADRID.
NAPLES
PARIS.
ROME.
STOCKHOLM
VIENNA:

ZURICH:

118, Boulevard Strasbourg.
Calle Valenzuela 10
Via Marina Nuova, 14.18.
1, Rue Auber.

37, Rue Caumartin.
49,50, Piazza di Spagna.
Drottninggatan 3.
IV. Stumpergasse, 48.
Pelikanstrasse, 22.

The public are recommended to hand in their Telegrams at the Company's Stations, where free receipts arc
given for the amounts charged.
Telegrams for this Company's Cables are also received at all Post Office Telegraph Stations ; but in order

to insure transmission by the Western Union Telegraph-Cable System, the forms upon which Telegrams are written

should be marked " Via Western Union," " Via Anglo " or " Via Direct." This indication is signalled tree of charge.
Cable addresses are registered free of charge.
All important Telegrams should be repeated, for which an additional quarter rate is charged.



U ll

EPUTplIOU

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NUILINI,

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sapi.4.4o

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nt-U \\T -V T-T IN" G M_T-1 d _11 CI
owlig io&Ak Iv' Service instructions

Time Received

Via Direct.

Receivind Orrice.
S ee back of Form for Telophuuo Number.

NEi\d,:.

4-4,42t,

-a

v

No. of Words.

Handed an M.

8

d. 29 Mkt, 1916 . ,
scoot)
Q,

,

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No inquiry respecting this Message can be attended to Without the productIon or this paper.

To




c-t

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,e,'?

Please hand your Reply direct to this Office.

64.7-

datlize. smi

4o

/0"-'h Ale

uor;onpoad eq4 4n0q4" 0; papua44n
aq taco aflussaiim s!qi. ulioacIsa.

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-

THE WESTERN UNION TELEGRAPH-GABLE SYSTM.
THE LARGEST TELEGRAPH AND CABLE SYSTEM iN EXISTENCE.

8 DUPLEXED ATLANTIC CABLES.
OVER 25,500 OFFICES AND 1,5oo,00o MILES OF WIRE.
Direct Wires from Cable Stations to all the principal commercial centres in
Great Britain, United States and Canada, and Direct connection with Central

America, West Indies, South America, Australia, New Zealand, Fanning, Fiji, and
Norfolk Islands.
D:RECT AND EXCLUSIVE CONNECTION WITH MEXICO.

RECEIVING OFFICES IN THE UNITED KINGDOM :LONDON:

Telephone Noe,

Teiephone Nor.

1, Old Broad

Street, E.C.
3761 Wall
63, Old Broad Street, E.C.
... 3316
48a, Gresham House, Old Broad St., E.C. ... 704
21, Royal Exchange, E.C.
.. 9117
39, 40, Mark Lane, E.C. 1070, 12C,4 Avenue, 3762
20. Mark Lane, E.G.
.
.
1050 A venue
East India A venue, E.C.
3763, 614
..
The Baltic, St. Mary Axe, r.c. 976 Avenue, 6974 Central
24, Throgmorton Street, E.C.
1368 Wall
1830 Central
1, Drapers' Gardens, E.C.
10, Holborn Viaduct, E.C.
4119 City
Donington House, Norfolk Street, W.C.
3717
24, 35, Southampton St., Strand, W.C.
1155 Gerrard
2, Charing Cross, S.W...
3598
5, Royal Opera Arcade, Pall Mall, S.W.
3073 Regent
34, Victoria Street, S.W. ...
3716 Victoria
48, Tooley Street, S.E....
984 Hop
.

.

.

.

General Offices

LIVERPOOL D 6, Exchange Buildings

2274 Central
(Private
Branch

.

Cotton Exchange ...

BRISTOL: Cunada. House, saldvsrin S.:reec
BRADFORD: 10, Forster Square
.

DUNDEE: 1, ranmure Street
EDINBURGH 50, Frederick Street
GLASGOW

23, Waterloo Street

LEITH Exchange Buildings
MANCHESTER: 20, Brown Street
NEWCASTLE-ON-TYNE 1, Side

WEST HARTLEPOOL: Exchange Buildings,

Exchange).

309 Central
771 Bradford

1351 Central
400
771
(Private
Branch
Exchange).

600 Leith
1455 City
1329 Central
'789 West

Mainsforth Te'raceI Hartlepool

WESTERN UNION HOUSE, 22, GREAT WINCHESTER STREET, LONDON, E.V.
TELEPHONE No,. 800 LONDON WALL (Private Branch Exchange)

PRINCIPAL CONTINENTAL OFFICES AND AGENCIES :-AMSTERDAM: 4, Weesperzijde.
ANTWERP:
4, Avenue de Keyser.
49, Canal des Recollets.

57, Calle Gaspe.
96. Paseo de Gracia
BERGEN:
Post Box, 166.
CHRISTIANIA: 4, Prinsensgade.
COPENHAGEN: 4, Jernbanegade.
HAMBURG:
4, Grosse Allee.
BARCELONA

HAVRE:
MADRID:
NAPLES
PARIS:

ROME:
STOCKHOLM
VIENNA:

ZURICH:

118, Boulevard Strasbourg.
Calle Valenzuela 10
Via Marina Nuova, 14 18.
1, Rue Auber.
37, Rue Caumartin.
49;50, Piazza di Spagna.
Droltninggatan
IV. Stumpergasse, 48.
Pelikanstrasse, 22.

The public are reC0772Mended to hand in their Telegrams at the Company's Stations, where free receipts arc
given for the amounts charged.
Telegrams Jor this Company's Cables are also received at all Post Office Telegraph Stations ; but in order
to insure transmission by the Western Union Telegraph-Cable System, the forms upon which Telegrams are written
should be marked " Via Western Union," " Via Anglo " or " Via Direct." This indication is signalled free of charge.
Cable addresses are registered free of charge.
All important Telegrams should be repeated, for which an additional quarter rate is charged.



Foam 6.

No

WEST

UNION

ANGLO-AMERICAN

DIRECT UNITED S

CAB

Service Instructions.

No.

^)

RAM

Receiving Office.

Time Received.

See back of Form for TelAphone Numb e r.

-

Via Western Union.

er.:4"st,
No. of Words.

Handed in at

-7........

STL,,s

4.7".-',
%

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OnARINg'c..."

.-mutt ":4-, 1,

81 hydli

-

Y2-.?

ling

4..)

.0.

f,
\r
.,

4c.isie--

No inquiry respecting this Message can be attended to without the production of this paper.

To




-44,--tier,

<21

-71-4-1,.telt,
0-7 -

_Jr('

AAPth
rcr--(#i-tfx.v

,

.7-141-4°

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a

Please hand your Reply direct to this Office.

i`. ;

-

rtly

THE WESTERN UNION TELECRA PH-CABLE SYSI
THE LARGEST TELEGRAPH AND CABLE SYSTEM IN EXISTENCE.
.

8 DUPLEXED ATLANTIC CABLES.
OVER 25,500 OFFICES AND 1,500,000 MILES OF WIRE.
Direct Wires from Cable Stations to all the principal commercial centres in
Great Britain, United States and Canada, and Direct connection with Central
America, West Indies, South America, Australia, New Zealand, Fanning, Fiji, and
Norfolk Islands.

DIRECT AND EXCLUSIVE CONNECTION WITH MEXICO.

RECEIVING OFFICES IN THE UNITED KINGDOM :LONDON:
1, Old Broad Street, E.C.
63, Old Broad Street, E.C.

Telephone Nos.

Telephone Nos.
...

3761 Wall

3316
704
... 9117

48a, Gresham House, Old Broad St., E.C.
21, Royal Exchange, E.C.
39, 40, Mark Lane, E.C. 1070, 1384 Avenue, 3762
20. Mark Lane, E.C.
1050 Avenue
East India Avenue, E.C.
... 3763, 614
The Baltic, St. Mary Axe, E.C. 976 Avenue, 6974 Central
34, Throgmorton Street, E.C.
... 1368 Wall
1, Drapers' Gardens, E.C.
... 1830 Central
10, Holborn Viaduct, E.C.
... 4119 City
Effingham House, Arundel Street, W.C. ... 1713 Gerrard
1155
34, 35, Southampton St., Strand, W.C.
2, Charing Cross, S.W.... ...
3598
5, Royal Opera Arcade, Pall Mall, S.W. ... 2073 Central
34, Victoria Street, S.W.
... 3716 Victoria
59

48, 'coley Street, S.E....

...

General Offices

984 Hop

LIVERPOOL D 6, Exchange Buildings

Cotton Exchange

...{

BRISTOL Canada House, Baldwin Stree
BRADFORD 10, Forster Square
...
DUNDEE: 1, Panmure Street
EDINBURGH 50, Frederick Street

2274 Central
(Private
Branch
Exchange).
309
771
1351
400

771 Central
(Private

GLASGOW: 23, Waterloo Street

Bran eh

Exchange).
...
LEITH Exchange Buildings
MANCHESTER 31, Brown Street
NEWCASTLE-ON-TYNE: 1, Side
WEST HARTLEPOOL: Exchange Buildings,

Mainsforth Terrace)

600
1455
1329
'789

26, OLD BROAD STREET, LONDON, E.O.

TELEPHONE No.: 5261 WALL (Private Branch Exchange).

PRINCIPAL CONTINENTAL OFFICES AND AGENCIES:
4, Avenue de Keyser.
49, Canal des Recollets.
4, Weesperzijde.
AMSTERDAM
57, Calle Gaspe.
BARCELONA
96, Paseo de Gracia.
CHRI'STIANIA: 4, Prinsensgade.
COPENHAGEN : Vesterbrogade 19.
HAVRE:
118, Boulevard Strasbour g.
HAMBURG:
4, Grosse Alice.
ANTWERP:

MADRID:
NAPLES:
PARIS:

Calle Valenzuela 10.
Via Marina Nuova, 14/18.
1, Rue Auber.
37, Rue Caurnartin.
ROME:
49/50, Piazza di Spagna.
STOCKHOLM: Drottninggatan 3.
VIENNA:
IV. Stumpergasse, 48.
ZURICH:
Pelikanstrasse, 22.

The public are recommended to hand in their Telegrams at the Company's Stations, where free receipts ar,
given for the amounts charged.
Telegrams for this Company's Cables are also received at all Post Office Telegraph Stations, but in order
to insure transmission by the Western Union Telegraph-Cable System, the forms upon which Telegrams are written
should be marked " Via Western Union," "Via Anglo " or " Via Direct." This indication is signalled free of charge.
Cable addresses are registered free of charge.
All important Telegrams should be repeated, for which an additional quarter rate is charged.




25

c

e

A 11

A GLO - AMER ICA N

DIRECT UNITED STATES

CAB

Service Instructions.

No.

Time Received.

Receivin

I

See baMr of Form

Via Western Union.

Office.

fo .-YelePhmie Number.

=Mae,

N

Handed in at

No. of Words.

No iwrquiry respecting this Message can be attended to without the production of"this paper.




To

?

a..cf

-

Please hand your

14ply,'recto this Office.
C.of

)
e

.

THE WESTERN UNfON TELEGRAPH-CABLE SYSVM
THE LARGEST TELEGRAPH AND CABLE SYSTEM IN EXISTENCE.

D U PLEX ED ATLANTIC CABLES.
OVER 25,500 OFFICES AND 1,500,000 MILES OF WIRE.
Direct Wires from Cable Stations to all the principal commercial centres in
Great Britain-,, United States and Canada, and Direct connection with Central
America, Westindies, South America, Australia. New Zealand, Fanning, Fiji, and
Norfolk Islands.
DIRECT AND EXCLUSIVE CONNECTION WITH MEXICO.

RECEIVING OFFICES IN THE UNITED KINGDOM :LONDON:
1, Old Broad Street, E.G.
63, Old Broad Street, E.C.

Telephone Nos.

Teleplohe

3761 Wall
...

3316
704

48a, Gresham House, Old Broad St., E.C.
21, Royal Exchange, E.C.
... 9117
39, 40, Mark Lane, E.C. 1070, 1384 Avenue, 3762
20. Mark Lane, E.C.
...
1050 Avenue
East India Avenue, E.C.
... 3763, 614
The Baltic, St. Mary Axe, E.C. 976 Avenue, 6974 Central
34, Throgmorton Street, E.C.
1368 Wall
Drapers' Gardens, E.C.
1830 Central
10, Holborn Viaduct, E.C.
... 4119 City
Donington House, Norfolk Street, W.C. ... 3717
34, 35, Southampton St., Strand, W.C. ... 1155 Gerrard
Charing Cross, S.W....
. 3598
...
5, Royal Opera Arcade, Pall Mall, S.W. ... 3073 Regent
34, Victoria Street, S.W. ...
... 3716 Victoria
48, Tooley Street, S.E....
984 Hop

LIVERPOOL: D 6. Exchange Buildings
Cotton Exchange

9274 Central
(Private
Brattob
Sachange).

.

BRISTOL: Canada House, Baldwin street
BRADFORD: 10, Forster Square
DUNDEE: I, Panmure Street
EDINBURGH 50, Frederick Street

.

GLASGOW

23, Waterloo Street

LEITH Exchange Buildings

309 Central
771 Bradford

1351 Central
401
771
(Private

Branch
lisehange).

600 Leith
1455 City
1329 Central
789 West

MANCHESTER: 31, Brown Street
NEWICASTLE-ON-TYNE I, Side
WEST HARTLEPOOL: Exchange Buildings,
Mainsforth Terrace ) Hartlepool

General Offices - WESTERN UNION HOUSE, GREAT WINCHESTER STREET, LONDON, EX.
TELEPHONE No.: 800 LONDON WALL (Private Branch Exchange).

PRINCIPAL CONTINENTAL OFFICES AND AGENCIES:AMSTERDAM
ANTWERP:

BARCELONA.

4, Weesperzijde,
4, Avenue de Keyser.
49, Canal des Recollets.
57, Calle Caspe.

96, Paseo de Gracia.
CHRISTIANIA: 4, Prinsensgade.
COPENHAGEN : Vesterbrogade 19.
HAMBURG:
4, Grosse Allee.
HAVRE:
118, Boulevard Strasbourg.

MADRID:

NAPLES:
PARIS:
ROME:
STOCKHOLM:
VIENNA:
ZURICH:

Calle Valenzuela 10.
Via Marina Nuova, 14113.
1 , Rue Auber.

37, Rue Caumartin.
49/50, Piazza di Spagna.
rottninggatan S.
V. Stumpergasse, 48.
Pelikanstrasse, 22.

The public are recommended to hand in their Telegrams at the Company's Stations, where free receipts are
given for the amounts charged.
Telegrams for this Company's Cables are also received at all Post Office Telegraph Stations ; but in order
to insure transmission by the Western Union Telegraph-Cable System, the forms upon which Telegrams are written
should be marked "Via Western Union," "Via Anglo " or "Via Direct." This indication is signalled free of charge.
Cable addresses are registered free of charge.
All important Telegrams should be repeated, for which an additional quarter rate is charged.




Ii

STAT S
IVNGLO -AMERICAN

CAB
No.

Service Instructioas.

N

Foam fm.

WESTERN UNION

RA I
Time Received

Receiving Office.
See back of Form for Telephone Number

Via Direct.
Handed in at

-No inquiry respecting this Message can be attended to without the production ot this paper.
r)




1

7--

Please hand your Reply direct to this Office.

THE WESTERN UNION TELECRAPH-CABLE SYSTFA.
THE LARGEST TELEGRAPH AND CABLE SYSTEM IN EXISTENCE.

8 DUPLEXED ATLANTIC CABLES.
OVER 25,000 OFFICES AND 1,5oo,000 MILES OF WIRE.
Direct Wires from Cable Stations to all the principal commercial centres in
Great Britain, United States and Canada, and Direct connection with Central

America, West Indies, South America, Australia, New Zealand, Fanning, Fiji, and
Norfolk Islands.
DIRECT AND EXCLUSIVE CONNECTION WITH MEXICO.

RECEIVING OFFICES IN THE UNITED KINGDOM :LONDON:

Telephone Nos.

Telephone Nos.

1. Old Broad Street, E.C.
3761 Wall
63, Old Broad Street, E.C.
3316
48a, Gresham House, Old Broad St., B.C.
704
142a, Winchester Rae., Old Broad St., E.C. 1368
21, Royal Exchange, E.C.
9117
39, 40, Mark Lane, B.C. 1070 1384 Avenue, 3762
...
3763, 614 Avenue
East India Avenue, E.C.
The Baltic, St. Mary Axe, E.C. 976 Avenue, 6974 Central
..
34, Throgmorton Street, E.C.
1368 Wall
1830 Central
Drapers' Gardens, E.C.
109, Fenchurch Street, E.C.
1050 Avenue
... 4119 City
10, Holborn Viaduct, E.C.
Effingham House, Arundel Street, W.C. ... 1713 Gerrard

34, 35, Southampton St., Strand, W.C.
Charing Cross, S.W.... ...
5, Royal Opera Arcade, Pall Mall, S.W.
34, Victoria Street, S.W.
48, Tooley Street, S.E....

...
...
...

...
...

1155

3593

2073 Central
3716 Victoria
984 Hop

2274 Central

LIVERPOOL: D 6, Exchange Buildings

(Private
Branch

Cotton Exchange

Exchange).
109

BRISTOL: Canada House, Baldwin Street
BRADFORD: to, Forster square
..
DUNDEE: 1, Panmure Street
EDINBURGH : 50, Frederick Street

1251

400
771 riCveantet r al

GLASGOW 23, Waterloo Street

Branch
Exchange).

LEITH: Exchange Buildings
RUNDE-RESTER 31, Brown Street
NEWCASTLE-ON-TYNE 1, Side
WEST HARTLEPOOL: Exchange Buildings,

Mainsforth Terrace

600
1,4355

I.

'789

General Offices - 26, OLD BROAD STREET, LONDON, E.O.
TELEPHONE No.: 5261 WALL (Private Branch Exchange).

PRINCIPAL CONTINENTAL OFFICES AND AGENCIES:4, Avenue de Keyser.
49, Canal des Recollets.
AMSTERDAM: 4, Weesperzijcie.
57, Calle Caspe.
BARCELONA
96, Paseo de Gracia.
CHRISTIANIA: 4, Prinsensgade.
COPENHAGEN: Vesterbrogade 19.
118, Boulevard Strasbourg.
HAVRE:
4, Grosse Allee.
HAMBURG:
ANTWERP:

Calle Valenzuela 10.
Via Marina Nuova, 14/18.
1, Rue Auber.
37, Rue Caurnartin.
ROME:
49/50, Piazza di Spagna.
STOCKHOLM: Drottninggatan 3.
VIENNA:
IV. Sturnpergasse, 48.
ZURICH:
Pelikanstrasse, 22.
MADRID:
NAPLES:
PARIS:

The public are recommended to hand in their Telegrams at the Company's Stations, where free receipts are
given for the amounts charged.
Telegrams for this Company's Cables are also received at all Post Office Telegraph Stations ; but in order
to insure transmission by the Western Union Telegraph-Cable System, the forms upon which Telegrams are written
should be marked " Via Western Union," " Via Anglo " or " Via Direct." This indication is signalled free of charge.

Cable addresses are registered free of charge.
All important Telegrams should be repeated, for which an additional quarter rate is charged.




MAROONI WIRELESS TELEGRAPP OOMPANY OF AMERICA

-,%-lus=

sea

EDWARD J. NALLY

( MARCONI i)
-

VICE-PRESIDENT AND GENERAL MANAGER

%

i4

Received ai

Office of Origin
No.

Words

I 91

-

7

Radio.

Time

Filed

M.

Time Rec'd

tiz.)

To:

This form must accompany any inquiry respecting this Marconigram
See Reverse Side



a9-7

y.6-72

M.




\N.

vviAgNifla WIAV11.13T 883.i3}11W 0100cIAM

EXECUTIVE OFFICES

90,

WOOLWORTH BUILDING. NEW YORK CITY
DIVISION OFFICES
EASTERN DIVISION
NEW YORK OFFICE
BOSTON OFFICE

SOUTHERN DIVISION
GULF DIVISION
GREAT LAKES DIVISION
PACIFIC COAST DIVISION
SOUTHERN DISTRICT
NORTHERN DISTRICT

25 ELM STREET. NEW YORK CITY
FILENE BUILDING, BOSTON, MASS
AMERICAN BUILDING, BALTIMORE, MD.
919 DECATUR STREET, NEW ORLEANS, LA.
SCHOFIELD BUILDING, CLEVELAND. OHIO
MERCHANTS EXCHANGE BLDG., SAN FRANCISCO. CAL.
L. C. SMITH BUILDING, SEATTLE, WASH.

FEDERAL RESERVE BANK
OF NEW YORK
SPECIAL DELIVERY

April 19, 1916.

Benjamin Strong, Jr., Esq.,
Shoreham Hotel,
Washington, D. C.
Dear Governor Strong:

I returned last night from Watertown stopping for a few
hours at Utica on the way back.

We had a gathering of about two

hundred bankers from Lewis, Jefferson and St. Lawrence counties,
also a lot of bank directors andfiusinessmen from Watertown and the
immediate vicinity.

/I

ended at one a. m.
an hour.

Speaking/commenced shortly after nine and
I went On at about twelve and took about half

The crowd stayed to the bitter end, however, and seemed

to pay very good attentibn.

I followed your precedent at Saratoga

and read what I had t

getitoutexactlyas it went in.

/

say as it was pretty long and I wanted
I think on the whole it was sue-

cessful in giving/them a little broader view of the functions of the

Reserve System/
frankness.

I also went at the exchange charge with complete

),

pa Utica I lunched with Mr. Rogers and he wants me to come
up there/and talk to a meeting of Utica bankers and their directors
,/

some tine next month, also to speak at Hamilton College, and I told
t I would do so.

On coming down to the office this morning I find that they
had a regular avalanche of gold on Monday for the Nederlandsche Bank;

about eight or nine different deposits were made aggregating 0,400,000




so that our total is now $4,570,000.

Aside from that there have

been two small rediscounts, one Monday and one to-day.
I am telegraphing you to ask if you won't ask Mr. Hen-

dricks to drop me a line about the situation in Washington in
respect to clearings for, of course, I am tremendously interested
to know what you find the situation to be.

I would give a lot to

be over there in it.

Over Sunday they poured the sides of the vault very suc-

cessfully and the office is a very different looking place to-day
that it was last Friday.

Tell Curtis that my appetite is getting pretty strong for
that dinner.

I am sorry I won't be here on May 1st as I have a meeting
of the Reserve agents' executive committee on that day.

Everybody I saw in Watertown and all the bankers I saw in
Utica opened up to me on the subject of the Comptroller's ways and
activities.

I see that the Seacoast National Bank of Asbury lark

is converting into a trust company.

I have a letter this morning from Mr. Delano, from the

err'
tenu,

of which I conclude that he has considerably changed his

views on the collection matter and has become far less of an advocate of immediate debit and credit than he was a month ago.

I hope

his letter is a clear reflection of the frame of mind you have found
him in.




With best regards, I am,
yours,

lt7Faithful

FEDERAL RESERVE BANK
OF NEW YORK
April 21, 1916.

Dear Governor:

I am awfully sorry to hear that you have not been well.

I had a

rumor of it yesterday from Felix Warburg who said that Mrs. Paul Warburg had
been up for the Hasty Pudding play and told him that you were not looking
well.

I am sorry to hear of the appearance of the "sugar-coated" plan
suggested by Messrs. Harding and Delano.
nude.

/In this business, I am for the

Hendricks has doubtless told you/of the result of our inquiries among

the members of our collection system al: to the relative desirability of the
immediate and deferred plans.

I talked with two of our three member banks

in Utica and they expressed themselyes as strongly in favor of the deferred
plan.

Any thoughtful banker must/do so.
Hendricks has just call4d me up on the telephone and told me of the

idea of the Harding-Delano plan!
ing it, it seems to me, offhan
reserve banks the protection

Without having the opportunity for studyinsincere and as not apt to give the Federal

rom overdrafts they have been seeking;

to say

nothing of other evils.

With many thanks

or writing me, and hoping that you are feeling

much better to-day, I
Faithfully yours,

Benjamin Strong, Jr., Esq.,
1718 H Street,
Washington, D. C.
PJ/PE






iVICE SYMBOL
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CLASS OF SERVICE SYMBOL
Dav Message

AM

CARLTON. PRESIDENT

Day Letter

Blue

Night Message

WESTERN UNION

N ite

Nkiht Lotter

If none of

UNION

Nite

NL
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Night Letter

appears after the check number of
words)this is a day message. Otherwise its character is indicated by the
symbol appearing after the check.

IVO) AT WYATT BUILDING, CUR. 14TH AND F STS., WASHINGTON, D. C. 'Mr

---CO.GK 54
NEW YORK 1259PM MAY 27 16'
Q
4 AMIN STRONG

1718 H ST WASHINGTON D C
HENDRICKS RECEIVED ADVICE YESTERDAY THAT HIS SON WAS NOT DOING WELL
AND MRS HENDR CKS WENT TO ALBANY YESTERDAY

AFTERNOON AND HE HAS

ST NOgIF I ED US THAT 4118 SON DIED THIS MORNING HIS ADDRESS IS CARE
GTOR ARTHUR

ELT!/P

ONE NINETEEN WASHINGTON AVENUE ALBANY MESSRS

ILER AND CANN GO TO ALBANY THIS EVENING

velem,

PIERRE JAY
136 PM




CLASS OF SERVICE

SYMBOL

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Letter

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Night Message

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RECEIVED AT

WESTE412SM UNION
TEL.. e-AD AM
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WESTERN UNION

NEWCOMB CARLTON, PRESIDENT
GEORGE W E. ATKINS, VICE-PRESIDENT
BELVIDERE BROOKS, VICE-PRESIDENT

915-919 Seventeenth

N 85 NY BC $5 N

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(72/6

Denver, Gob.

JTUELLEry HONED

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BEJAMIN STRONG JR ESQ

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APPLI ATION STIPULATES FOR CONSIDERABLE FREEDOM IN FUTURE ESTABLISHMENT

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THE CHARMS OF THE RUGGED OLYMPICS

FRESH MILK - CREAM - POULTRY
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FROM OUR FARM

ON LAKE CRESCENT

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COPY OF LONGHAND LETTER
LAKE CRESCENT TAVERN
P. 0., Piedmont, Washington, August 11, 1916
My dear Governor;

As a correspondent, I have been the limit on this trip.
My genera
tion has been supplemented by a very busy life and little comfortable opportunity to
write. I was mighty glad, as well as surprised, to get your letter, and to learn from
the office correspondence that you were busily at it with them. I take it as a good
sign, and an indication that your doctors must be pleased with your progress.
I could have followed your suggestion and run down to Estes Park for a few days, but
your letter came just as we were leaving the ranch in a few days, and my plans were so
matured that I couldn't very well change them with three other people to consider.
a little later on in the autumn when Curtis and Treman have had their vacations I
should be more than glad to have you send for me and spend 3 or 4 days with you going
over things any time you like. This trip has taught me that Denver is a pretty
easy place to get to, and I suppose that you are only a few hours beyond.
After
leaving the ranch, we spent a couple of days motoring in the Yellowstone--how
people endured it in the old stages I can't see -- and then have been swinging up very
fast through Portland, Tacoma, and Seattle, en route for Victoria and a day or two in
the Canadian Rockies on the way home', where I'm due August 21. This is a 2 days' resting
spot and a very lovely one, in the Olympics which are just beginning to be possible for
the tripper.
It seems a
Today, I read in the paper of Harding's and Warburg's appointments.
curious compromise, and I imagine Warburg doesn't feel altogether happy about it.
I haven't heard from him since I left, but at_any rate it settles the Hamlin end of
it, and when Harding has determined on a policy, he is a driver and not a ducker.

Living out on the ranch, I seemed very far away from Nassau and Pine Streets,
and could only recall what goes on there when I got the copy of the weekly diary
which goes to you. When this came each week, it would bring me back to earth again,
and I must say that, appearing out of space, as it were, it all sounded mighty interesting and seemed very vital and real as a piece of work. The last two years have
been the most interesting, by far, that I have ever had and as I get within a few
hours of the office and look back over these two years and forward to the coming months
it is perfectly clear to me that the best thing in the two years was the daily association with you and the inspiration and friendly basis which came from it, and it is
equally clear that while the friendship will persist, the lapse of daily relationship
is going to take a big amount of.the spice out of our office life, and however much
you may write us, we shall have a hard time keeping up anything like the punch you
used to instil into us and the work.
I don't say this in any spirit of
ment, for you know perfectly well that we'll work just as hard as ever, but we are
going to miss you like the devil. I saw a recent letter of Treman's to you in which
he exhorted you again not to try to keep the whole thing on your shoulders while
your business is to be getting well, to all of which I say amen.
When you went West,
you took on a new job -- to get well and that's going to take a whole lot of care
and thought and absence of worry about things outside.
Do go easy on
moment at least. We need you back just as soon as you can come and come well; and
anything you do now that may postpone that time isn't in the slightest worth doing.
Until yesterday, the only banker I saw on the trip was Oliver LaFarge in Seattle,
and it was not banking which brought us together. He is just pulling up stakes after
17 years and going down to Albuquerque to join his wife who has been there two years
with T.B.'s and look for a job in the neighborhood.
The bankers I saw yesterday were




-2-

Wold and Rich at Minneapolis.
Our C. 4P. R. train left us leaving
hours there before
for Chicago, and while Wold's daughter ran Mrs. Jay and the girls about town, I had a
good chat with them -- the first word of business talked in 6 weeks. They were much
upset over the "collection-by-postmasters" fiasco; and Wold, just as we were leaving,
promised some inside talk on the Hamlin-Harding-Warburg gubernatorial situation
which he gathered in Washington last week. I'll hear it tomorrow as he and McD. and
Fancher will be in New York -- en route for Boston.

I was mighty glad to see from some letters Rich had, as well as to learn from
him himself, that R.H.T[remanhas been quite active in my absence. The more he can
know about things in the bank, the better.
I looked over Rich's publici
and believe it is doing good work and that we can do something of that kind, only
much better, if we can find someone on the force to do it.
I rather dodged Wold
and McDougal's train (from Chicago) this A. M. in order to put in the day (my family
having left me for a New England train) cleaning up those advertisements I showed you and
think I made a job of it.
Probably they will get all torn to pieces agai
people, but something useful will come out of it, I'm convinced.
I did nothing on them,
while West, as I couldn't bring myself to do any work whatever on the ranch and had no
time afterwards. We have been scurrying along, in twoeeeks, to Portland, Tacoma,
Rainier Park, Seattle, Lake Crescent, Victoria, and Lake Louise. Tt got a couple of
good days in the saddle at the last, and then we started out on 4 pullman nights, of
which the last (and hottest) is about to begin. After a night or two in a bed, I
shall be feeling as fit as possible and ready for this red Clayton flag which Curtis
keeps waving so ominously.
I have no doubt that you are feeling as worried as I am over the infantile
paralysis situation, as our children are approximately the same ages.
be spreading rapidly over the country. The twin cities have quite a bit, and Chiago
a lot; Billings (Montana) had 1/2 dozen cases a fortnight ago. I suppose, however,
that another 4 - 5 weeks will see it well on the wane, but in the meantime it keeps
one anxious.
I must now go through the form of going to bed.
a better correspondent.

From now on, I shall try to be

Faithfully yours,
(Signed)

PIERRE JAY

I read in today's paper that C. E. Hughes is about to join you at Estes
All along the line there has been but one view expressed of his campaign thus
far, that it is n. g. Perhaps you can give him a steer to let out something constructive p. d. q., if he's got any of that variety of juice in him.
P. S.
Park.




FEDERAL RESERVE BANK OF NEW YORK

Bel.oamin Strcn6,

From Mr. Jay

sq.

6/31/16.

September 1, 1916.

There is really but little to add to the foregoing except that Mr.
Harding told me yesterday that the State Department had expressed considerable
interest in the matter and wished to take it under careful advisement.

Mr.

Harding intimated that it might be a couple of Weeks before we heard from them.
, have told Mr. Harding that in case any questions come up we would like to be
represented before the State Department.
I was in 71ashington yesterday at a Clayton meeting attended by several

Federal reserve agents, and we had an interesting day of discussion with the
Board about which I will write you early next week.
The good news of your condition was received with the greatest interest
and satisfaction in Washington and I do not need to tell you haw glad it made
all of us here.

I had a nice letter from you a couple of days ago and hole to write you
a decent letter some time next week.

Just at present Treman has gone away on a

two and a half Or three weeks' vacation, and in addition to such daily routine
matters as came up to me I am struggling with the Clayton situation and trying to

have an interview with the president of each of the banks concerned so as to give
them every opportunity to prove non-substantial competition, all of which takes
lots of time and leaves one perhaps about as much in the dark as ever as to how
to make recommendations.

I often long for your clear knowledge of the business

done by the various institutions here, but in reality it is the only reason I am
really glad you are not present, because I should like to make my recommendations

with regard to the Bankers Trust Co. and other situations you are interested in
without having discussed the matter with you.

I appreciate, however, your offer-

ing to help me in this, but it is one of the burdens you ought to be completely
relieved of.







ME
NMI

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IN

Me

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MI MC
Mr 11

(At

THE WESTERN UNION TELEGRAPH COMPANY
INCORPORATED

2.5,000 OFFICES IN AMERICA
jr-

CABLE SERVICE TO ALL THE WORLD

(i)

ortipany TRANSMITS and DELIVERS messages only on oondi dons limiting its liability. which have been assented to by time -nble r 4 4 the follow i ng Night Letter,
e o
can he guarded against only by 1,W/it., a hieSeit, back to the sending station for COMpariS011. and the Company Aoll lit till itSelt liable fur errors or delays La
tranomisslon or delivery of Urtrepeated Night Letters. sent at reduced rates, beyond a sum equal to ten times the amount paid for transmission; nor inany ease beyond time 311111
of Fifty Dollars, at which. ooloss otherwise stated below, this intvisage has been valued by the sender thereof, nor in any .eruie where tho .MintId rldt presented mr writing within
sixty days after the messii, is filed with tile Company for transmission.
This is an AINREVEATED NIG uT LETTER, and is delivered by request of the sander, Under the cOnditious minced above.

BEtVIDERE BROOKS, GENERAL MANAGER

THEO. Nt., VAIL, PRESIDENT

RECEIVED AT
D 8 J 167 NL
Q NEW YORK NY,SEPT 7 1916
BENJAMIN STRONG,

THE LEWISTON
IN CONSIDERING

HOTEL, ESTES P.RK, COLO.

NEW-YORK CITY CLAYTON APPLICATIONS MAIN QUESTION

ARISES UPON SUBSTANTIAL COMPETITION BETWEEN TRUST COMPANIES
AND NATIONAL BANKS THINK BOARD INCLINED TO RULE TH-AT TRUST CO
HAVING SUBSTANTIAL COMMERCIAL DEPOSITS COMPETES WITH NATIONAL BANK

VD NATIONAL BANK HAVING SUBSTANTIAL DORANT INTEREST ACCOUNTS
COMPETES WITH TRUST CO ALSO THAT MAINTENA 'CE OF SUBSTANTIAL FOREIGN

DEPARTMENTS CONSTITUTES COMPETITION THINK BOARD INCLINED GO TO
CONSIDER OPEN MARKET PURCHASES OF PAPER AND MAKING,OF STREET LOANS

Jiff

AS COMPETITIVE UNLESS INSTITUTIONS CONCERNED ARE VERY IMPORTANT




,ESTE

UNION

DAY

TER

THEO N. VAIL, PRESIDENT

RECEIVED AT
D 12 J, 307 BLUE

K NEW YORK NY 330 PM SEPT 10 1916
BENJAMIN STRONG,
LEWISTON

MANY BANKS

HOTEL ESTES PARK,COLO.

gletergic
FULLY IN ACCORD

ITH YOUR VIEWS,4HROUG4.1 INVESTIGATIONS OF

SITUATION CONVINCES ME THAT NATIONAL BANKS AS(ACKSOAND TRUST COMPANIES
4attio

AS(ACKSS)ARE NOT IN SWBSTANTIAL COMPETITION AS TO DEPOSITS STOP WHILE
FOREIGN EXCHANGE IS CONPETIVE THE COMPETITION DOES NOT SEEM TO BE
ettola..

SUBSTANTIAL EXCEPT IN VERY FEW CASES THAT GROUNDON9WOULD NOT SEEM

il

UFFICIENT TO UNLOCK DIRECTORATES AND .;OULD MAKE SOME VERY QUEER RESULTS
UJO COMMITTEE SOUGHT PRIMARILY TO/
Aga-sin-E. CONTROL -Tr STOCK EXCHANGE LOAN RATES AND PREVENTION

/OP

OF SALE OF SECURITIES OF ENTERPRISES

IIIIIIIIIpTop
-

BANKS ARE

SO

HOSTILE TO INTERESTS OF INTER-

LARGE THAT 3Y COMBINATION THEY COULD

-7S THEY MIGHT POSSIBLY BE CONSIDERED COMPET174VE STOP




I= NM WM
iM VA
161 IG
&I in
THE WESTERN UNION TELEGRAPH COMPAN
25,000 OFFICES IN AMERICA

INCORPOBATEC

CABLF

-RVICE TO ALL THE WORLD

,ttipany TRANSMITS and DELIVERS messages only so
can be guarded 1tqainst only by repeating a message bac,
or delivery of Unrepeated Night Letters. sent at reds,
Bra, at which. milesa otherwise stated below. this mem,
the message is flied with the Company for transmission.
UNREPEATED NIGHT LETTER. and is delivered by request of the sender, under the conditions named above.

VAIL, PRESIDENT

BELVIDERE BROOKS, GENERAL MANAGE

ECE1VED AT
BENJAMINE STRONG--- SHEET #2
)FACTOR IN MARKET CURTIS RATHER FEELS WE CANNOT ATTEMPT TO EXAMINE

TOO CLOSE THEAIND OF BUSINESS DONE BY THE RESPECTIVE TRUST
MIND
COMPANIES AND THE RESPECTIVE NATIONAL BANKS BUT MUST TREAT ALL
DOWNTOWN TRUST COMPANIES AS A CLASS/MY OWN VIEW HAS BEE THAT WE

SHOULD TREAT EACH CASE SEPARATELY ON ITS MERITS BUT l'RECOGNIZE
THE DIFFICULTIES ARISING THERE FROM/MY EVIDENCE NOW ABOUT
FINISHED AND MUST SPEND FRIDAY AND SATURDAY MAKING RECOMMENDATIONS/
IF AS YOUR

LETTER INDICATES YOU HAVE GENERAL VIEWS SHOULD

APPRECIATE YOUR WIRING FULY BY DAYLETTER.
PIERRE

JAY

850AM




11111 WESTE

UNION

Form 2581)

WESTERN UNION

DAY

TER

THEO. N. VAIL, PRESIDENT

RECEIVED AT
CONGRESS AND PUBLIC WILL EXPECT BOARD TO USE DISCRETION IN A BROAD
WAY/WHAT WOULD YOU THINK OF CONSIDERING ALL DOWNTOWN NATIONAL BANKS
erK

et-0

cut.

COMPETIT+e+tit'AND 11.6t DOWNTOWN TRUST COMPANIES COMPETIT

-

ON BASIS

Gty1444m.,
OF THE* RESPECTIVE PREDOMINtEBUSINESS AND FUTHER Call1S.S.14148 ALL
INSTITUTIONS WITH OVER 17,'0 HUNDRED MILLIONS DEPOSIT COMPETITIVE IN

HMS BROADER BASIS OF BEING PREPONDERANT FACTORS IN MONEY RATES// THIS
WOULD INCLUDE BANKERS GUARANTY CITY COMMERCE CHASE AND WOULD ELIMINATE

WIGGI1 FROM BANKERS AND GUARANTY ALEXANDER FROM BANKERS MCGARRAH AND
REED FROM EITHER BANKERS OR GUARANTY SIX COMMON DIRECTORS OF COMMERCE
AND GUARANTY WOULD HAVE

TO

CHOOSE ONE OR THE OTHER STOP BOARD TO TAKE

POSITION THAT UNLOCKING OF THESE FIVE,BANKS MAY BE FOLLOWED BY FURTHER
ACTION LATER IN OTHER INSTITUTIONS IF OBSERVATION AND DEVELOPMENTS
REQUIRE. STOP HAVE JUST EVOLVED THIS SUGGESTION AND SHOULD LIKE TO GET

Form 2589 K
kceN.11

THEO. N. VAIL, PRESIDENT

RECEIVED AT
YOUR FRANK REACTION OF IT ALSO SOME ELABORATION OF YOUR VIEWS ON
'7HAT BANKS ARE COMPETIT.Wftr IN FOREIGN EXCHANGE AND HOW IMPORTANT THE

COMPETITION IS JHEN CONSIDERED

FROM THE VIEW POINT OF A BANKSENTIRE

BUSINESS/SHOULD GREATLY APPRECIATE A NIGHT LETTER CARE SHOREHAM MUST

MEET BOARD MONDAY MORNING FOR FINAL DETERMINATION OF CASES.




PIERRE JAY 8PM.
,




NIGHT LETTER

Form

'HE WESTERN UNION TELEGRAPH CONIPAN-k.
I NCORAPOii3ALTEED

25,000 OFFICES IN AMERICA

plo

,

SERVICE TO ALL THE WORLD

'is Company TRANWITS and DELIVERS tnessaeoes only on conditions limiting its liability. which have been assented to by the ,cnricr ,.f t lie iiiii cvin, NI4it I tt r
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after the message Is filed with the Company' for transmission.
Is is an UNREPEATED NIGHT LETTER, and is delidered by request of the sender, under the conditiOus named above.

pays

BELVIDERE BROOKS, GENERAL MANAGER
-

TH'EO. N. VAIL, PRESIDENT

RECEIVED AT
D

1

J

99 NL

NEW YORK NY SEPT 14, 1916
BENJAMIN STRONG,
ESTES PARK, COLO.

RETURNED FROM WASHINGTON LAST NIGHT BOARD DECIDED TO ADOPT MY SUGGESTED
PLAN BUT CARRY LINE DOWN TO ONE HUNDRED FIFTY MILLIONS THEREBY INCLUDING
HANOVER PARK MECHANICS FARMERS CENTRAL EQUITABLE STOP'METROPOLITAN
BROADWAY TRUSTS DOING COMMERCIAL BUSINESS WERE CONSIDERED IN
COMPETITION WITH NATIONAL BANKS THIS PLAN DOES NOT PREVENT COMMON
DIRECTORS BETWEEN SMALL BANKS AND LARGE TRUST COMPANIES OR LARGE BANKS
SMALL TRUST COMPANIES APPRECIATED YOUR TELEGRAMS GREATLY AND READ
THEM TO BOARD STOP

I

TOLD SEVERAL LEADING BANKERS THIS AFTERNOON OF THE

RULING THEY DID NOT ,RECEIVE IT VERY FAVORBLY BOARD_PROBABLY MAILING
NOTICES TO APPLICANTS TOMORROW.
PERRIE_JAY 820AM

Misc. 34

Pj/RAH

FEDERAL RESERVE BANK
OF NEW YORK

Postal Night Latter

(TO BE MAILED)

7:15 p.m.

CONFIRMATION OF TELEGRAM
We have today telegraphed you as follows :

September 14, 1916.

Care Lowiaton
Estes Park, Colorado
tieturned from Washington last night
130=4/decided to adopt my suggested plan but
carry line down to one hundred fifty millions thereby includi4g Hanover Park Mechanics
Earers Central Equitable Stop Netropaiitan and Broadway Trusts doing commercial
business were considered in oompotition'with national banks
This ilan dos not
prevent common directors between small banks and large trust companies or large banks
and small trust companies
Appreciated your telegrams greatly and read them to Board
Stop I told several leading banker's this afternoon of the ruling
They did not
receive it very favorably
Board probably mailing notices to applicants tomorrow

Pierre Jay.
Chge. Fed. Res. Bk.
Nassau & Pine Ste.


http://fraser.stlouisfed.org/
-2
Federal Reserve Bank of St. Louis

FEDERAL RESERVE BANK
OF NEW YORK

thi)

SSeptember 22, 1916.

Dear Governor Strong:

This has been another day of almost solid

Clayton./

I have had

about half a dozen so-called private bankers in,and since lunch have been
thrashing the subject over with Mr. Delano who has
to Washington.

I think we made some progress tow

settled on a reasonable basis.

tufted

up on his way

getting this matter

He is going oveto-night to discuss it

with his associates to-morrow, and on Monday W/rburg and Harding will be
back from Kansas City.

We finished to-day our contemplated sale of the 4750,000. July
3% notes, selling 4500,000. to J. P. Morgan & Co. and 4250,000. to Morgan
& Bartlet on a 2.75% basis.

We

have/no

intention of selling any more at

the present time.

I have had one or two talks with Mr. Morgan lately in connection
with the recent meeting of the Advisory Council.

He came

full of enthusiasm for the system and for such perfecting amendments as we
are all in favor of.

He has been converted to Warburg's gold amendment

which failed in the Congress just adjourned, but would like to have the aggressive attacks begin very high up in the scale.
important conversion since heretofore, as you know, he has always held
firmly to the Bank of England idea.

him to
When we reelected/the Advisory Council the general feeling was
that it would be his last term.

I now have a very strong feeling that it

would be a great mistake not to reelect him for another term although I should
be dintinctly in favor of having it understood that the 1917 term would be




I consi

FEDERAL RESERVE BANK OF NEW YORK

the last one.

#2

Benjamin Strong, Esq.,

9/ 22/16

.

I think that in view of his interest in the system, his in-

terest ,in the Advisory Council, his support of this bank in giving us the

bullion checks, (we have had about $60,000,000. of such checks within the
last month) and in view of the feeling which exists in many quarters about
the Board's decision on interlocking directors, for us now to replace Mr.
Morgan on the Advisory Council would be a very great strategic error.
have spoken to Mr. Woodward and Mr. Trenan about this, both of whom agree
I had intended to speak to Mr. Vanderlip this week but found that

heartily.

he had just left for Kansas City.

If you agree with this point of view I

wish very much that you would talk it over with him and see if he would feel
entirely content to have such an action taken on the part of our board.

Our

term of directors' service is three years, and I think it would be very appro-

priate for us without committing ourselves always to reelect our advisory
council for three years, to have it understood in a general way that that would
be the term.
tle value.

I think an election of one year to that council is of very litIt meets so seldom that it takes a man a year or two to really get

into the swing of it.

In this connection, the election of directors is coming along very
soon and I had a talk with Mr. Woodward about it last night.

He is strongly

impressea with the belief that this year affords practically ouronly satisfactory opportunity to establish proper machinery to safeguard our elections in
the future, and that therefore he should not run again but should let the machinery develop itself.

He also believes that for the New York bank representa-

tive at least the voting principle should apply, and through inquiries I have

made I believe that this view would be shared by many of the other New York
bankers.

know.

Whether it should apply in the country districts or not, I do not
Of course, there would be plenty who would be glad to serve.

tion is whether we would be sure of getting good ones.




The gzes-

Of course, it would be

Benjamin Strong, Esq.,

FEDERAL RESERVE BANK OF NEW YORK #Z

unfortunate to lose Mr. Woodward.

9/22/16.

If in his place we should get Alexander,

whose term as chairman of the Clearing House Committee ends in the course of
a week or so, we should not be hampered by the change.

By this I do not mean

that there are not other good men, but Alexander has been particularly interested, sympathetic and broadminded.

Mr. Vanderlip's term as president of

the Clearing House, I believe, runs for one or two years longer.

Mr. Woodward's

idea appeals to me strongly provided we could be fairly certain that really good
and permanent machinery could be established.

Otherwise I should be strongly

for his reelection.

We have invited Mr. Turner of Elmira, president of the National Bank
Section of the New York State Bankers Association to come down and talk it over
with us on Monday morning.

I showed Mr. Delano a copy of Mr. Pallaies letter, and he was, of
course, very much interested.

He tells me that he wrote you fully about the

English matter and he has agreed to make some inquiries immediately on his return to Washington so as to be able to give me the situation to date,when I am
over there next Tuesday, as I expect to be, discussing the private banker situation.

I hope to be able to take Mr. Curtis over with me and possibly he will

be able to do something along lines you have suggested with the state department.
If you have a chance to talk to Mr. Vanderlip about the Advisory Council matter before next Wednesday, I should be glad if you would send me a wire
giving me your views, as the matter might possibly come up for preliminary discussion at our directors' meeting.

I have not had a minute all day to continue the Clayton Act letter, and
I am afraid it will be pretty stale stuff by the time I get around to it.
With best regards, I am,
Faithfully yours,
Benjamin Strong, Esq.,
The Lewiston, Estes Park,
Col.


PJ/BAH


LO.A)2&

huA")/V

FEDERAL RESERVE BANK
OF NEW YORK
FOR YOUR OWN
PERUSAL ONLY.

September 23, 1916.

Se

<05!
(94,

Dear Governor Strongs

Your suggestion in a recent letter thy,' owe you two letters
is a gross understatement of the facts.

I must owe you at least a dozen,

and I feel like the eminent statesman of our mutual acquaintance who said
he would like to "discuss acceptances with you for a week."

For your

sake I should hardly like to spend a week writing letters, but I feel as
if I had enough to say to take me a week to dictate.

The fact is that as

Treman and Curtis have been away at governors' meetings, vacations, or
otherwise almost continuously since I got back I have had to take on the
people whom they might otherwise have seen in addition to doing
to do) my regular work and the extra Clayton matter besides.

or trying

The result

is that I feel just about where I was last spring and I have forgotten entirely that I have had a vacation.

Your letters coming every few days to one or another of us with
their clear cut views and broad constructive ideas have only served to make
me realize more acutely how much I miss the daily chats with you on all these
topics we are so much interested in, and hope all the more ardently for your
speedy recovery and return.

The news in your last letter to Mr. Treman

that you really felt you were progressing was fine for us and I am mighty
glad to be able to pass it on to the literally dozens of people who ask me
for news of you.

First of all I think I had better write you forty or fifty pages
about the Clayton situation.

We had about two hundred and fifty applica-

tions in this district and I found when I came back that Curtis had spent




FEDERAL RESERVE BANK OF NEW YORK

Benjamin Strong, Esq.,

9/23/16.

most of his time during the i.receding two or three weeks in answering inquiries on the subject over the telephone.

About the end of August I was

called over to Jashington together with the Reserve agents from Philadelphia,

Richmond, Cleveland and Boston and we spent a day discussing the situation
with the Reserve Board at which it became apparent that the primary form of
competition between banks and trust companies to Which they would give attention was competition for commercial accounts.

Wherever a trust company

showed any substantial amount of unsecured customers' paper in its statemeat
they would want to be shown that it was not doing a commercial business and therefore

not in competition with the national banks.

After this conference I

spent the next ten days interviewing the principal officers of all the important national banks and trust companies in this city and obtaining statements
from them concerning the nature of their business as well as a statement of
the rates they paid on their deposits and the amount of deposits at each rate.
My impression during these conferences was that many of the bankers had satisfied themselves that the Kern amendment meant that they could continue their
trust company as well as their banking connections not exceeding three.

The

net result of this investigation, which as you may imagine took a great deal
of time, was a conviction on my part that except in their foreign departments
the trust companies as a whole were not in competition with the national banks
as a whole, since the nature of their business, except with respect to their
open market operations, was quite different.

I felt, however, as I tele-

graphed you, that with the largest institutions their ability to exercise a
preponderant influence in the credit market was such that they would have to
be considered in competition on that ground, and I was very gratified to get
your telegram approving this point of view, though I did not get it until
after I had spent a day with the Board discussing the subject and had made to




FEDERAL RESERVE BANK OF NEW YORK #3

Benjamin Strong, Esq.,

9/23/16.

them a suggeStion similar to the one I had telegraphed you.
I went over to Washington on the evening of Sunday, September 10th,
after iputting in a good day of work at the office with Miss Holmes getting

things in shape, and spent the 11th, 12th and 13th with the Board discussing
the New York City situation, working out the basis and deciding on each case.
I first presented my report and recommendations, which I am sending you herewith and trust you will return them as I have no other copies.

At the end

of the report you will find the banks with which each member bank interlocked
and the number of cases in each.

The letter "V" means that I recommended

the application be granted,- and the letter "X" indicates that I recommended
that the application be refused.

The attitude of the different members of the Board was interesting.
The Secretary and Delano were away.

The Comptroller thought that any bank

that took demand deposits was ipso facto in competition with others.

Miller

was radical at all times and seemed convinced that tearing apart directorates

was all that was needed to send the trust companies bowling along commercial
*lines.

Harding was inclined to be really liberal.

ful consideration to liberal ideas.

Hamlin was giving care-

Warburg was inclined to be rather strict

on the basis that Congress had left this matter to the Board's judgment, and
unless they carried it out and exercised their discretion in what would be
considered an appropriate way they would not be apt to be granted discretion
by Congress again.

At the end of the first day when I spoke of the

200,000,000. line

which would include the City, Commerce, Chase, First, Guaranty and Bankers,

it

was received with some favor, but the institution that prevented it from being generally accepted was the Farmers with its eleven City Bank directors.
That seemed a situation hard to get ovor.

I think that if there had been one

or two directors it might have appeared differently to the Board.




I argued

FEDERAL RESERVE BANK OF NEW YORK

Benjamin Strong, Esq.,

9/23/16.

,strongly that the Farmers were not in competition with the City, while others
argued that it was.

I have to stop now to catch my train as I am going out of town for
the week end and will try to finish on Monday.
Very sincerely yours,

WV-0v

Benjamin Strong, Esq.,
The Lewiston,
Estes Park, Colorado.

PJ/BAH
Enc.




FEDERAL RESERVE BANK
OF NEW YORK
September 27, 1916.

Dear Governor Strong:

My promise to finish the Clayton letter on Monday went by the
board as I had a string of private bankers in all day and had to leave
at half past four to catch a train for Canandaigua where I spent yesterday.

I received from Mr. Curtis just before leaving town on Friday
afternoon a letter from M. Pallain, and endeavored unsuccessfully to find
an adequate translator.

On Monday I thought of Mr. De Neuflize and suc-

ceeded in getting him about four o'clock in the afternoon to come up and
translate it for me.
tion.

I am enclosing herewith the result of his transla-

There is just one word in it of which I have doubt and that is

whether the Bank of France would guarantee the collection of the drafts
we might buy here.

I will ask him about this to-morrow morning and write

you.what Mr. De Neuflize says.

I note that you are going to draft a letter to send to us, and
in the meantime I will get hold of Mr. Woodward and discuss the plan with
him and write you his views.

I am returning herewith the translation you sent to Mr. Curtis
and will return the original letter to-morrow after seeing Mr. De Neuflize.
I am sorry that we did not agree about selling some of the 3%
Government notes.

I took it up with the Board again last week nnd read

them your letter, but the only one as I remember who agreed with you was
Mr. Palmer.

In view of your representation as to what some of our con-

servative member banks might think Of it I discussed your view with Mr.



EIDERAL RESERVE BANK OF NEW YORK

Benjamin S trong, Esq.,

#2

Alexander and found him heartily

in

9/27/16.

sympathy with the idea, so we went ahead.

We sold a million to Morgan & Company at 2.70 and half a million to Salomon
Brothers & Hutzler at 2

5/0.

I hope that no harm has been done and we

felt here that some good has been accomplished.

all

We have thought it advisa-

ble to let the $750,000. of July 1st maturity also be sold if we get a good
price for them, but we have no idea

of

selling those due next October which

we ought to receive in a few days.

An unfortunate error appeared in our circular issued yesterday with
regard to rates of discount.

You no doubt noted that it mentioned a rate

on commodity paper, although, we have never established such rate.

We shall

be sending out another circular in a day or two on the amendments and I think
it would be wise to correct this error in it.

Hoping soon to have an opportunity to finish the Clayton letter, I
am,

Faithfully yours,

Ch:f2ITIL(-164E)

Benjamin Strong, Esq.,
The Lewiston,
Estes Park, Colorado.

PJ/BAH
Enos.




"22,1




NIGHT LETTER

Forra 22891,

HE WESTERN UNION TELEGRAPH COMPANY/
INCORPORATED

CABLE SERVICE TO ALL THE WORLD

25,000 OFFICES IN AMERICA

rhis Company TRANSMITS anti DELIVERS messages only on conditions bolting its liability, which have been assented to by the sender of the following Night Letter.
Errors van be guarded against only by repeating a message back to the sending station for Comparison, and the Company will not bold itself liable for errors or delays iIi
Sviitaninisslon or delivery of Unrepeated Night Letters. sent at reduced rates, beyond a sum equal to ten times the amount paid for transmission: run- in any case beyond the suic
of Fifty Dollar, at which. unless otherwise stated below, this message has been valued by the sender thereof, nor in any ease whore the claim is not presented in writing- with;
sixty dtt,S after the message is flied with the Company for transmission.
This is an UNREPEATED NIGHT LETTER, and is delivered by request of the sender, under the Conditions named above.
.1

THE.O. N. VAIL, PRESIDENT

BELVIDERE BROOKS, GENERAL MANAGER

RECEIVED AT

D 6, J
Fl

90 ML

NE'.7YORK NY SE'--T 28 1916

ke'

<4,N6c2 .6
(9

-STRONG,

T-E LEWISTON ESTES PARK, COLO.

HAVE JUST SPENT EVENING MTH M DE EUFLIZE DISCUSSING LETTER
YOU FORWARDED STOP HE SUGGESTS THAT TO EXPEDITE ±ATTERS YOU WRIT
HIM INFORMATIY REGARDING DETAILS STOP HE SUGGESTS THAT MATTERS
MIGHT BE ACCELARATED BY HIS

FOR HIS PRICOAL TO OPEN

ITING US REQUESTING PERMISSION

ACCOUNT WITH US STOP 'ATH THE NECESSARY

!SENT OBTAINED SMALL RECIPROCAL ACCOUNTS COULD BE OPENED AND

ONCE RELATIONS WERE ESTABLISHED THE PROPOL:ED PLAN COULD LATER
E GRADUALLY DEVELOPED STOP BOTH SUGGESTIONS IMPRESS ME FAVORABLY'




NIGHT LETTER

Form 2283K.

rIE WESTERN UNION TELEGRAPH COMPANY
INCORPORATED

25,000 OFFICES IN AMERICA

CABLE SERVICE TO ALL THE WORLD

'lb is Company TRANSMITS and DELIVER,: messages only on conditions limiting its liability. which have been assented to by the sender of the 01 ,wing Night
Errors NM be guarded against mly by repenting a message back to the sending station fur comparison, and the Company will not hold itself liable for Prror, ortie :li ti
transmission or delivery of Uorepeated Night Letters, sent at reduced rates, beyond a sum equal to ten times the amount paid for transmission nor in any ca.Ae hepaid the' A.1,11
of Fifty Dollars. at which, unless otherwise stated below, this message has been valued by the sender thereof, nor in ally ease where the claim is not presented in writing wit.,
sixty days after the message is Mild with the Company for transmission.
This is an UNRLFEATED NIGHT LETTER, and is delivered by request of.the sender:Laufer the conditions named above,

THEO. N. VAIL, PRESIDENT

-

BELVIDERE BROOKS, GENERAL MANAGER

RECEIVED AT
STOP HE HAS EXAMINED TRANSLATION MAILED YOU YESTERDAY AND
K S NO CHANGES
P, JAY 838AM




WESTEkkE;SA UNION
NIGH
TTER
,

Form 2289

WESTERN UNION

AN

GEORGE W. E. ATKINS, V/CE-PRESIDENT
RECEIVER'S No.

NEWCOMB CARLTON. PRESIDENT

I TIME FILED

BELVIDERE BROOKS, VICEPRESIDENT

CHECK

-

I

END

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

Benj. Strong-,

4100 Montview Boulevard,
Derver,Colo.

Curtis telephoned me his wire to you. .Stop.
Harding advised
that the Depai-tment in question did not care to c.onsider -tic
matter but requested Board to deal with it purely as a br,nking
matter. Stop. Board will have full meeting .next week, and,then
advise us formally. Stop.
Harding said they Would probably
authorize us to complete pinn but expect
riithout their authority.

Pierre Jay.

us to do n




ALL NIGHT LETTERS TAKEN BY THIS COMPANY ARE SUBJECT TO THE FOLLOWING TERMS:
The Western Union Telegraph Company will receive not later than midnight NIGHT LETTERS, to be transmitted only for delivery on the morning of
shall
the next ensuing business day, at rates still lower than its standard night telegram rates, as follows: The standard day rates for ten words less. be charged for the
transmission of fifty words or less, and one-fifth of such standard day rate for ten words shall be charged for each additional ten words or
COM
To guard against mistakes or delays, the sender of a night letter should order it REPEATED, that is, telegraphed back t.o the originating offic
For this, one-half the unmounted night letter rate is charged in addition. Unless otherwise indicated on its isee, 'MIS IS- AN UNREPEATED
AND PAID FOR AS SUCH, in consideration whereof it is agreed between the sender of the night letter ami 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 UNREPEATE
any REPEATE
the amount received for sending the same; nor for mistakes or delays in the transmission or delivery, or for non-delivery, of interruption in
fifty times the sum received for sending the same, unless specially wined; nor in any ease for delays arising from unavoidable
nor for errors in obscure night 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 no
2.
letter, whether caused by the negligence of its servants or otherwise, beyond the sum of FIFTY DOLLARS, at which amount this night le paid o
unless a greater value is stated in writing hereon at the time the night letter is offered to the Company for transmission, and an additional sum
paid based on such value equal to one-tenth of one per cent. thereof.
0. The Company is hereby made the agent of the sender, without liability, to forward this night letter over the lines of any other Company
to reach its destinatiOn.
'let: cm will be dolivered free within one-half mile of the Company's office in towns of 5.000 peoulal ion or less, an
4.
in other ciii, or +owns. Beyond these limits the Company does not undertake to make delivery, but will, without liability, at
and at his ;Me-1,e. endeavor to contract for him for such delivery at is reasonable price.
attaches to this Company concerning night letters until the same are accepted at one of its trans
sent to such fit i Op one f the Company's messengers, he acts for that purpose as the agent of the sender. presented in writ
pa ny will not be liable for damages or statutory pcfmities in any case where the claim is not
C. 'I
letter is filial with Om Company for transmission.
are
In tic:- ,,,,idrratiorr of the reduced rate for this special " NIGHT LETTER " serviem the following special termsand he oMpalLyhall be deemed
to the address, s,
the
HT LETTERS may at the option of the Tk mph Company be, mailed at desdnatain at destination, postage prepaid.
A. 19
,4,Inzation in such cases with respect to delivery by mailing such NIGHT LETTERS
have diseliamell
Code language is not permissible.
NIGHT LETTERS shall be written in plain
foregoing.
7. ys., employee of the Company is authorized to vary
THE WESTERN UNION TELEGRAPH COMPANY
-

INCORPORATED

NEWCOMB CARLTON, PRESIDENT

CLASSES OF SERVICE
TELEGRAMS
A full-rate expedited service.

NIGHT TELEGRAMS
Accepted tip 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: Onc. and one-half times the standard night letter
rate for the transmission of 50 words or less and one-fifth of th.t
initial rate for each additional 10 words or less. Subordinate
to the priority of transmission and delivery of regular-telegrams.
"t be written in plain English. Code language not permissible.

Telephonic delivery permissible. Day Letters received subi
express understanding that the Company only undertakes de
the same on the day of their date subject to conditions that stt
time remains for such transmission and delivery during regular o
hours, subject to priority of the transmission of regular telegr

NIGHT LETTERS
Accepted up to midnight for delivery on the morning of the
ensuing business day, at rates still lower than standard nig
gram rates, as follows: The standard day rate for 10 words
eAarged for the transmission of 50 words or less, and onrs-

standard day rate for 10 words shall be charged for eac
10 words or less. Must he written in plain English. C
not permissible. Mail delivery, postage prepaid, perm.

ETTE Ft

TELEGRAPH .: COMPANY
250Q0 OFF1C

IN Alk?

CABk.E.,-SPERVICE TO ALL:11-IEWORLD

7fljt,/),
its liabilIty. w nteli
ashen
the
i. fill
n, Night Letter.
ho'd if 11.0,1i for error,:
lelity3
ig station for comp:tin:ton iitei the (trill nit trill
n ir in my
bevoti.1 the 311
'Id a sum equal to ten tames Illo ani,onit pahl fir trnti,ni...,
ineneniej
aue4 by the sender thereof. nor Ili :tray rasp wi,re
if the sender, under the cundlLidus named abuy...

BELVIDERE BROOKS, GENERAL MANAGER

K NY OCT 4 1916
STRONG,

LE4ISTON ESTEC

P1

COLO.

,

LOCKE GAVE NOTICE THAT AT NEXT LEETING

-TORS MEETING

2ESOLUTION PROVIDING THAT THIS BANK SHOULD BUY NO
SS ACCEPTED OR INDORSED BY MEMBER BANKS THIS WILL BEING
-

SQUA.RELY FOR DECISION

I

HAVE NO DOUBT OF RESULT :ITHIN OUR

THINK YOU SHOULD NOT LOSE OPPORTUNITY TO DISCUSS IT FULLY
ANEBELIP STOP A OUT YEAR. AGO

I

ASKED SEVERAL BANK PRESiDENTS

VIEWS STOP ALL EXCEpTVANDERLAP THROUGHLY APPROVED OUR BROAD
BUT HIS LEAP I



THER THE OTHER WAY.
\,,

827 AM

FEDERAL RESERVE BANK
OF NEW YORK

kr,

o

Oe<er

4, 1916.

vfr

Dear Governor Strong:

I am very much obliged for your telegram received this morning
relative to the directors of this bank and the Advisory Council man.

I

shall hope to have a letter from you in a few days giving a little more
of the pros and cons which led to the conclusions you reported in your
telegram.

Mr. Woodward's mind is not irrevocably,but very firmly, set towards the principle of rotation.

Mr. Towne has also showed me your la-

test letter to him and I have asked him to defer any farther action on
this matter for a few days for the following reason.

At the Atlantic City meeting of the New York State Bankers Association, the association was divided into five sections, each with much
independence of action but all united for common action through the assoThe National Bank Section at its meeting passed the following

ciation.
resolution:

"That the Chair appoint a committee of three
to act with a representative of the New Jersey banks who
are members of the Federal Reserve Bank of New York, and
a representative of the Connecticut banks who are members
of the Federal Reserve Bank of New York, to the end that
proper recommendations of candidates for directors of
Federal Reserve Bank of New York be made to all member
banks, and that they be informed of the qualifications of
all candidates for such directorship, and that all proper
steps be taken to secure the best possible men as directors
of said bank."

Some weeks ago Mr. Turner appointed as the New York members of
this committee, Yr. Perkins, Mr. Smythe of Bronxville, and Mr.




Burden of

FEDERAL RESERVE BANK OF NEW YORK

Benjamin Strong, Esq.,

#2

Cazenovia, representing groups 1, 2 and 3 of our

electors.

10/4/16.

Mr. Turner

came down at our request on Monday and spent the morning here discussing
the matter with Mr. Treman, Mr. Curtis, Mr. Woodward and myself.

He is in

thorough accord with our desire to get some machinery started which will
go on year after year suggesting to the member banks good names for them to
He gave considerable care to the selection of the committee,

nominate.

and I think has got an admirable selection.

My feeling is that this spe-

cial committee should be appointed each year by the executive council rather
than by its chairman in order

to have it as representative as possible.

Mr. Woodward is very anxious to use this occasion and this year to put the
rotation idea into operation and to express himself in a letter which might

be sent to the member banks indicating the importance of the election of
good directors, etc., etc.

Personally, I am very keen to have Mr. Woodward

remain, but as we are pretty sure to get a good New York bank director any-

how, I feel that the importance of establishing elastic nominating machinery
is the vital thing and that this is the particular year when it may best be
undertaken.

I am very glad to learn what you say about the Advisory Councilman
and shall await a letter some day giving your views and those of Mr. Vanderlip in some more detail.,

Mr. Morgan told me that he expected to be back by

the end of November and we should not ordinarily take this matter up until
early in December, after the election of directors is over.
At our meeting to-day I brought up your letter to me of August 25th
relative to your compensation.

The board voted to continue your salary at

its present rate until the end of October and beginning November 1st to establish it until further order of the Board at the rate of 415,000, or "half pay"
as several members expressed it.

Mr. Curtis and I were especially asked by

the directors to see that this got on the minutes in such form as to indicate
that the initiative was taken by you and not by the bank, and to say to you



FEDERAL RESERVE BANK OF NEW YORK

#3

Benjamin Strong, Esq.,

144/16.

that they made the reduction not because they wished to reduce your salary
or were in any way unappreciative of the valuable work you are now doing for
both the bank and the System, but because they believed that in so doing
they were carrying out your real wishes in this respect.

I hope very much

that you will agree with the conclusions reached.

Mr. Treman has written you about several other matters which were
taken up, and accordingly I shall not duplicate.
Mr. Locke,out of the clear sky, said he wished to give notice that

at the next meeting he

would offer a resolution to the effect that this

bank should not purchase any acceptances except those of member banks or those
which are indorsed by member banks.

This naturally roused a good deal of

interest and there were two or three suggestions that we had better reserve
the whole of the day next time for our meeting.
of the probable lineup.

There were brief suggestions

Mr. Palmer indicated that it would have his approval.

Mr. Thompson said that he did not know but was rather inclined to agree.

Af-

terwards Mr. Peabody, Mr. Treman, Mr. Curtis and I lunched together and Mr.
Peabody thought it might possibly be well for you, if you thought it advisable,
to write Mr. Locke at length on the subject, perhaps sending us a copy of your
letter.

Mr. Woodward said that Mr. Thompson was going to talk to some of our

member bankers on the subject.

It appears, however, that Mr. Treman has got

to be absent on the date of our next meeting, and as he forgot to speak of this
when we were determining on the date of the meeting he thinks that it would be
better for him to write a letter to the Board asking that if the matter were

going to be voted on, the vote could be postponed until the next meeting when
he could be present.

We also discussed informally the question of paying dividends, which
was mentioned at our last meeting.

I submitted the following statement pre-

pared for me by Mr. Jefferson, which, however, does not include the amounts due
to New Jersey and Connecticut banks:



FEDERAL RESERVE BANK OF NEW YORK

Net earnings Nov.

Benjamin Strong, Esq.,

44

16, 1914,

to Sept.

1, 1916,

4232,000.

estimated net earnings 4 mos. at 440,000. = including
deductions for amortization and all expenses

ADD

144/16.

160 000.

4392,000.
DEDUCT sundry accounts carried among assets Aug. 31, 1916:
Assessment for expenses F. R. Board prior to
4 27,600.
July 1, 1915,
58,800..
Expense of organization - local
51.400.
Equipment

4137,800.
Less amortization included in calculation
of net earnings above 4 mos. at 45,600.
Estimated net earnings from Nov.
Dividend to Dec.

31, 1914, (6

16, 1914,

weeks on

to Dec.

22.400.

31, 1916,

115 400.

,276,600.
22.150.

43,322,000.)

v254,450.
AMOUNTS REQUIRED TO PAY DIVIDENDS BY MONTHS.
Dividend to Jan.

at 1/2% =

4 18,371.50

46,637,750. " 1/2% =

33,188.75

" 46,640,133. " 1/2% =

33,200.66

31, 1915,

on
'

43,674,300.

It

"

Feb.

28, 1915,

It

" Mar.

31, 1915,

" Apr.

30, 1915, " p6,984,833. "

" May

" June

1/2% =

34,924.16

31, 1915,

" 49,961,650. " 1/2% =

49,808.25

30, 1915,

" 0,957,650. "

49.788.25

1/2% =

041,100.00

The general feeling was that it would be advisable for us to begin

paying dividends on December 31st, but as to the period up to which we should
pay them, the views informally expressed ran all the way from December
to June

March

30, 1915.

31, 1915.

31, 1914,

My own preference on the figures presented would be up to
Of course, the matter won't come up for real discussion until

December, but some time you might feel like giving us your view.
Curtis and I spent yesterday in Washington.

Cotton was also there

and we discussed for an hour with the Reserve Board the question of who is a



FEDERAL RESERVE BANK OF NEW YORK

#5

Benjamin Strong, Esq.,

10/4/16.

EJ
"private banker."

We took up the case of Adrian Iselin 8, Co. as perhaps as

much on the border line as any other, and the general opinion seemed to be that
they would have to be considered private bankers.

The matter was then referred

to counsel to prepare a definition which would be comprehensive and at the same
time easily understood.

Messrs. Elliott, Cotton, Curtis and I then spent a

couple of hours upon it, and Cotton finally produced a very brief but compre-

hensive definition which I think will fit the case and allow the banker to determine whether he falls within its provisions or not without consulting a lawyer.

The definition excludes brokers in stocks. notes, or merchandise, also

commission merchants, unless a substantial part of their profits is derived from
conducting one or more of the banking functions described in the definition.
Those also are excluded who merely invest or loan their own funds.

I understood

that the Board would discuss the definition at its meeting to-day, and probably
adopt it.

Cotton was going to remain over.

I urged that

see its way clear to do so it should not make the private banker rule apply in

places of under 200,000 inhabitants, and in cases where the banker had smaller
resources than 435,000,000. Thesentimentof the Board was that they would like to

adopt this view if counsel could advise them that they were justified in doing
so.

Judge Elliott at our conference produced an opinion written by him last

spring advising them affirmatively, and as Cotton and Curtis had no objection to
the opinion, although not agreeing with its conclusions, I think the Board is
apt to take that view.

I have your letter to-day about the Forbes interview, which I think I
was responsible for sending to you.

I know him but slightly but I have an im-

pression from things I have heard that he is devoid of humor.

I must say I was

aStounded at his giving out the interview.
I agree with you about the agent's fund and the bank's fund, and believe that the report the auditing committee will make will serve as the lever-




FEDERAL RESERVE BANK OF NEW YORK

#6

Benjamin S trong, Esq.,

age to bring about the separation we have all desired.
Very sincerely yours,

()1q01.74

Benjamin Strong, Esq.,
The Lewiston,
Estes Park, Colorado.

PJ/RAH




10/4/16.

Misc. 34

kJ/ RAH

FEDERAL RESERVE BANK

Postal

"FEW YORK

(TO BE MAILED)

5:Z:0 p.m.

CONFIRMATION OF TELEGRAM
We have today telegraphed you as follows :
October 4, 191,_,.

Benjamin Strong Esq
The Lewiston
Estes Park,

Colorado

At todays directors meeting Mr. bocke gave notice that at next meeting he would
present r,solution providing that this bank should buy no acceptances unless
This will Lring matter up squarely for
aeceptel or indorsed by member banks
decision I have no doubt of rtsult within our board but think you should not
fully with Vanderlip
Stop
About a yea
lose opportunity to discuss
asked several bank presidents their views stop All except Vunderlip thoroughly
approved our broad policy but his leaning was rather the other way

it

ierre Jay.
B2

Ch;e. Fed. Res. Bk.
120 Broadway




FEDERAL RESERVE BANK
OF NEW YORK
er;cfr
.4-11

October 7, 1916.

Dear Governor Strong:

When Mr. Curtis and I were in Washington on Tuesday
we took up with Mr. Harding the question of the matter now
pending before the State Department.

He promised to see

whether the matter could be expedited in any way, and I have
just received the enclosed letter from him to which I have
replied as per enclosed copy.

I do not believe there is any use agitating the
matter again for another month or six weeks.

At that time

we shall certainlytake it up vigorously and see if we cannot

bring the matter to a favorable conclusion.

I had urged

upon Governor Harding the desirability of prompt action in
order that the matter might not be allowed to grow cold
across the water, and it is to this that he refers when sug-

gesting

that you should write your friends on the other side

about matters of detail, etc.

Very truly yours,

Benjamin Strong, Esq.,
The Lewiston,
Estes Park, Colorado.
P.VEAH
Encs. (2)



FEDERAL RESERVE BANK
OF NEW YORK

;w

October 7, 1916.

Dear Governor Strong:
I spent pretty much all Wednesday at a meeting of the sub-committee
appointed by the National Bank Section of the New York State Bankers Association to consider the question of the election of directors of this bank.
The meeting was on the whole very satisfactory.
of the com:Attee and Perkins, Secretary.

They elected Burden, Chairman

They agreed that in view of the fact

that not a large number of member bankers were at the meeting at Atlantic City

where the resolution establishing the committee was passed, it would be advisable, in view of the situation prevailing among some of our up-state bankers,
to put them on notice of the resolution before sending out any names and give
them an opportunity to protest.

This resulted in the mailing of a circular

letter yesterday, of which I sent you a draft copy.
The committee is going to meet again at 3:15 October 11th, in order
to select some names of possible candidates for the Class B vacancy, and
Perkins was appointed a sub-committee to discuss with Mr. Woodward the situation in regard to the Class A vacancy and to consider how that matter should
be handled, it being the unanimous view of the committee that there should
always be at least one leading New York banker on our board.
I felt very well satisfied with the programme and feel as though
we now had some good machinery under way, unless it should turn out that the

member banks should disapprove it so generally as to cause the committee to
abandon its programme.
with Woodward.
again.



I doubt if there is much chance of doing anything

I hope, however, to be able to persuade 77r. Towne to run

FEDERAL RESERVE SANK OF NEW YORK

Benjamin Strong, Esq.

2A-

10/7/16.

Mr. Pavenstedt of Muller, Schall & Company cane in yesterday and
made a written statement in balance form to Mr. Woodward, Mr. Treman, and
myself.

I am going to send it out to you early next week after we have had

an opportunity to analyze it further together.

Mr. Treman is out of town

to-day.

I am enclosing copy of the Board's pronouncement on the private
banker question, which you very likely have seen yourself in the papers.
I was very much obliged indeed for your telegram of October 3rd,
which arrived while I was in washington.

I am glad to learn from your tele-

gram to-day that you are writing me fully your views and those of Mr. Vanderlip
on the question of our policy in nurchasing acceptances.
In regard to your letter of September 20th, the representative of

the Evening Post has been in to see Mr. Treman and me and we are now discussing with the chairman of the clearing house committee the question of their
giving out our balances each day after the manner of giving out the balances
of the Assistant Treasurer.

Have you any views on this noint?

If you think of any good men for us to suggest as Class 3 directors,
would you kindly wire re their names not later than Wednesday morning.

Don't

bother cudgelling your brains on this subject, as we shall go through a lot

of lists endeavoring to seleCt the best ones, but it may just hapnen that you
have two or three particular names in mind you would like to suggest.
I am glad to say that ny trip to Canandaigua, much as I regretted
having to take it, proved effective in getting them straightened out on their

time deposit question, and with Mr. Curtis' consent they are now going ahead
on a plan which is entirely satisfactory to them.
Sincerely yours,

Benjamin Strong, Esq.,
"The Lewiston,"
Estes Park, Colo.

PJ/CEP


Encs.


(f'

NEW YORK STATE BANKERS' ASSOCIATION
ORGANIZED 1894
OFFICERS, 1916-17
BENJAMIN E. SMYTHE,
PRESIDENT
BBONXVILLE, N. Y.

JOHN H. GREGORY,

VICE-PRESIDENT
ROCHESTER, N. Y.

ALEX. C. SNYDER,

-

HEADQUARTERS

TREASURER

11 PINE STREET

BROOKLYN, N. Y.

WILLIAM J. HENRY,

SECRETARY

II PINE STREET, NEW YORK, N. Y.

New York, October 6th, 1916.

NATIONAL BANK SECTION.
To the Member Addressed:

At the organization meeting of the National Bank Section of the New York State Bankers
Association held at Atlantic City last June the view was expressed that the election of able and experienced directors of the Federal Reserve Bank of New York is a matter of vital importance not only
to the member banks of this district but also to the System as a whole in view of the prominent
position of New York in both domestic and international finance, and the following resolution was adopted:

"That the Chair appoint a committee of three to act with a represen-

tative of the New Jersey banks who are members of the Federal Reserve Bank
of New York, and a representative of the Connecticut banks who are members
of the Federal Reserve Bank of New York, to the end that proper recommendations of candidates for directors of the Federal Reserve Bank of New York
be made to all member banks, and that they be informed of the qualifications
of all candidates for such directorship, and that all proper steps be taken to
secure the best possible men as directors of said bank."
Acting in accordance with this resolution, I have appointed as members of such committee :

J. H. Perkins, Vice-President of the National City Bank, New York,
representing Group 1.

B. E. Smythe, President of the Gramatan National Bank Bronxville, N. Y.,
representing Group 2.
Henry Burden, 2d, President of the Cazenovia National Bank, Cazenovia, N. Y.,
representing Group 3.

The following representatives of New Jersey and Connecticut have been designated by their

respective bankers associations:

Tohn D. Everitt, President, Orange National Bank, Orange, N. J., and

President of the New Jersey Bankers Association.
F. N. Benham, Jr., Assistant Cashier, First Bridgeport National Bank, Bridgeport, Conn.

The law reserves to the member banks the sole right both to nominate and elect candidates for
directorships. The committee, therefore, cannot make nominations but will suggest each year to the
member banks voting the names of a number of men, perhaps three or four for each vacancy, who in
its opinion would be efficient directors of the Federal Reserve Bank. Such action by the committee
would neither require the nomination of the persons suggested nor prevent the nomination of other
persons by the member banks, acting either individually or jointly.
Although the resolution warrants the committee in proceeding to carry out its instructions, it is
deemed advisable first to advise the member banks of the provisions of the resolution and of the appointment of the committee and its proposed policy. It will be assumed that the member banks approve the
terms of the resolution and the plan of action herein outlined unless before October 16th, I am advised
to the contrary by a sufficient number to indicate general disapproval.
Very truly yours,




S. G. H. TURNER,
President, National Bank Section,
New York State Bankers Association,

FEDERAL RESERVE BANK
OF NEW YviiipRK

o

2ber 10, 1916.

Dear Governor Strong:
Your flock of letters dated October 5th and 6th added in a very
I am mighty glad

pleasant way to the pile I found on my desk this morning.

to hear that you have had such a satisfactory time with Vanderlip and Trumble.
I assume that you are also seeing Hendricks.

Warburg was in the office yesterday having come over to register,
and he told me something of his conversations with you.

I gathered from him

that he had given you pretty much all of the details about the Clayton situation so as that is now pretty ancient history I do not believe I will finish
my abruptly ended letter of a fortnight ago on this subject.

You know the

general conclusions and Warburg has probably given you more of the gossip on
the subject than I should have put in my letter.
number of protests from various parties.

Last week there were a

The only one in our district is

Paterson where the situation is complicated by the fact that the bank has only

They

about 025,000. over the ;5,000,000. of resources mentioned by the Lct.
are pleading to be let out on account of the closeness of the figure.

Warburg

is rather disinclined as it would be saying to them practically "You must now
stop growing."

Er. Alexander is going over to meet the Board on Thursday to urge
that the Central Trust Company and the National Bank of Commerce be declared
not in competition.

They now have four joint directors, Messrs. Lanier,

Iselin, Julliard and Jarvie.
count of being private bankers;

The first two are disqualified any way on acthe third would stay with the Guaranty Trust;

the fourth would go with the Coml:erce if he could get the decision reversed.




FEDERAL RESERVE BANK OF NEW YORK

#2

Benjamin Strong, Esq.,

10/10/16.

I think Warburg's view, in which I fully concur, is that to declare these
two institutions not in competition would be to undo the whole principle

upon which they have acted in New York, Chicago, St. Louis and perhaps one
or two other places.

Warburg had a talk with Alexander yesterday afternoon

and explained to him his position on it.

Mr. Alexander nevertheless said

that he wculd like to have his interview with the board, so that will take
place on Thursday.

To revert to the history of the decision for a moment, as soon as
I received word, after returning from Washington, that the Board had adopted
the principles tentatively agreed upon I asked Mr. Vanderlip, Mr. Alexander,
Er. McGarrah, Yr. Hine, Mr. Wiggin, Mr. Prosser, Er. Sabin, Mr. Thorne, Mr.

Woodward, and one or two others to stop in here, one by one of course, and
Most of them thoroughly dis-

explained to them at some length the situation.

believed in any idea of substantial competition based on the Volume of funds
to be used in the credit market, but most of them were particularly nice about
it.

Only one or two showed any unpleasant spirit.

Poor Prosser, of course,

was heart broken as I think he had made up his mind that all would be well.

I

had urged the Board to give out a statement explaining its basis, and Warburg
and I had prepared one togpther for the papers.
ing it out but he was in a mfnOrity of one.

Warburg was in favor of giv-

I said that in a matter as impor-

tant as this the Board could not refrain from making some statement as to the
basis of its action, and it would be much better to give it out in advance
than to bring it out as an "explanation."
of it.

But they evidently would not hear

Of course, it happened just as I anticipated.

The papers in the course

of a day or two were full of it and then the Board gave out the statement which
we had prepared.

I understand that in Chicago they are protesting vigorously

on account of the Corn Exchange and the Illinois Trust and Savings being declared in competition.



Of course, they fall under the same ruling as that

FEDERAL RESERVE BANK OF NEW YORK

#3

,Benjamin

Strong, Esq.,

10/10/16.

adopted in New York, the institutions affected being the Continental, First,
Corn Exchange, Illinois Trust and Merchants Trust, but I believe the Board has
stuck to its guns in this matter.
I wrote you last week about the private banker situation and sent you
a copy of the Board's statement.

On that basis Adrian Iselin, Jr. is taken

out of the Commerce, Ernest Iselin out of the Hanover, Beekman Winthrop and

Moses Taylor out of the City, Orme Wilson out of the Mechanics, August Belmont
out of the Chatham & Phenix, Herman Kountze out of the Atlantic, Charles Lanier
and Adrian Iselin out of the Commerce, H. P. Davison out of the Liberty, James
Brown out of the Bank of New York, and Henry Ickelheimer out of the Importers
and Traders.

Of course, the private banker situation is such as to be a very effective preventer of state institutions joining the system.

I have looked over

your suggested amendment and rather feel that the question of Putting private
bankers on the same basis as other institutions in regard to substantial competition will not meet the situation. Certainly Morgan, for example, would be in

competition with the Guaranty Trust and Bankers Trust on foreign and other business.

Such an amendment as the following might be possible;

to prohibit a

private banking firm from having any of its members serve as a director of more
than one bank which is a member of the Federal Reserve System.
vent any firm from controlling a whole series of banks.

This would pre-

Of course, the whole

matter is a delicate one to bring up and this is merely an offhand suggestion.
You will remember that this would have been permitted under the Pujo Committee's
report, which recommended also that a director of a national bank should be per-

mitted to serve as a director of not more than one trust company, no mention
being made of competition.




I am enclosing copy of Ladenburg

Thalmann's statement, together with

FEDERAL RESERVE SANK OF NEW YORK

....

Benjamin Strong, Esq.,

10/10/16.

certain memoranda that Mr. Treman and I took down in an interview with Mr.
Rosen.

I believe I wrote you that the Board approvedta line of500,000

for this firm.

Mr. Woodward, with their consent, has looked over the state-

ment.

October 16, 1916.

I stopped writing you at this point in order to get an opportunity
to go over the statement again with Mr. Treman before writing you, and give
you some further elucidation of the various items based on our-recollection
of the interview.

Unfortunately last week slipped away without an opportu-

nity to do so and now I am going to send it off for what it is worth and shall
ask Mr. Rosen more particularly about it to-morrow when he comes to see me, as
I understand he expects to do with Mr. Guinness.

In the meantime the Board

has approved the form of statement.

Last Thursday being a holiday Mr. Treman and I held down the office;
he to prepare the speech he is to deliver next Wednesday on "Trade Acceptances,"

at the Hardware Convention at Atlantic City, and I to clear up my desk.

I was

successful in the latter operation with the exception of the lot of letters I
have from you dating back to my vacation, many of which have not been adequately

answered, and I am expecting to-morrow to sit down with them and write you a
decent reply.

In the meantime let me thank you for your letter of October 11th

; and particularly for the lecture you read me about my own tisbehavior.

I admit

it freely, but can only plead in extenuation the great amount of work which had
to be done and which I di)not seem able to delegate satisfactorily, except the
merely routine end of it which went to Mr. Lins, concerning the Clayton Act applications.
ever tackled.

We had about 330 in all and it has been about the meanest job I

The actual physical labor of interviewing most of the people

where the decision was difficult has been very considerable but much the most




trying has been the anxiety which the necessity for making these unhappy decisions has caused me.

we

h:74

In addition to the decisions about competing banks

also about fifteen or twenty cases of people concerning whom I

to

decide whether or not they were private bankers.

Now that this is all over, I hope to have some time to attend to the
business of the bank.

The fact is, however, that I am bound to be more busy

than I have been heretofore for two reasons; first because I feel more responsibility about the affairs of the bank, and second because while Mr. Treman sees
a good many people there are a good many others who do not know him andvho naturally ask for me.

As to Clark Williams' dinner, that little effort only took about an
hour's preparation so that it did not amount to much.

The only speaking en-

gagement I have now is at Utica on October 30th where I am to meet the bankers
at dinner and talk to them about the system.
With best regards, I am,
Faithfully yours,

Benjamin Strong, Esq.,
4100 Montview Boulevard,
Denver, Col.

PJ/RgH







LADENBURG, THALMANN & CO.

BALANCE

SHEET

as at December 31 1915.

LIABILITIES

ASSETS

Cash on hand and in banks in United
States
Bills Receivable
Call Loans
Debtors
Investments in stocks and bonds
taken at or below market value
Furniture and fixtures
Customers' liability under acceptances

,

2,465,242.68
505,000.00
1,953,559.56
11,091,335.70
6,073,851.10
10,000.00

Capital
Reserves including provision
for doubtful debts
Time Loans
Creditors including partners
balances
Acceptances outstanding for
account of customers .
.

5,000,000.00
438,190.66
3,620,000.00

13,040,798.19
.

988,777.37

988 777.37

,23,087,766.41

I have examined the books and accounts of Messrs.
Ladenburg, Thalmann & Co. and certify that the foregoing
balance sheet as at December 31, 1915, is correct and in accordance therewith. Full provision has been made for all bad
and doubtful debts.
Thos. W. Tannock, C.P.A.
(Signed)
Auditor

,t),'23,087,766.41




DECEMBER 31, 1915.

ANALYSIS OF DEBTORS.

4

Cash balances abroad
Due by foreign bankers secured by stocks
It

unsecured

.

381,851.56

1,455,786.23

.

130,588.44

.

Brokers and wire a/cs

1,121,250.30

Domestic stocks, margin alcs

4,928,049.67

Mercantile a/cs

45,045.76

Comercial a/cs domestic

1,440,568.64

Other domestic a/cs

*

Total

1,588.194.90

y11,091,335.70

Note * Unadjusted a/cs.
Bankers U.S.A.
It
Foreign
Secured Loans
Exchange a/cs
Various

.

201,900.00
467,000.00
600,000.00
199.294.90

0.,588,194.90

INVESTMMTS
$ 3,218,788.53
3,230,055.70
7.471.25

Bonds
Stocks
Miscellaneous items

0 6,456,315.48
Less credit balances on syndicates
Total

.

.

.

.

382,464.38
6,073,851.10

STATEMENT MADE BY MR. ROSEN VERBALLY TO
MESSRS. JAY ANL TREMAN IN CONNECTION WITH THE
LADENBURG, THALMANN & COMPANY MATTERS.

The worth of the partners, outside of the firm's business, is at
/east C2,250,000., over and above their liabilities.

-e carry our furni-

ture and fixtures at $10,000. but they cost about ft50,000., and we will
charce off same this year.

e we nothing abroad except some balances due custoners in their
accoutts.

At present we are borrowing about t,6,000,000. against

3,000,000.

as shown in our statement last January.
In the list of bonds and securities in our statement, fully 60%

of then are securities listed in the New York xchange.

Other securities

we hold are listed on other exchanges and some are unlisted.

The secur-

ities we hold for our foreign customers are all America: securities.
The deposits *ith us are about ft0,000,00
:015,000,000. as a maximum.




as a minimum 'and




Form 1204
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tier
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Nile

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NL
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WESTE4147LNI UNION
TEL ..t. - AM
Plk

wywri7

NEWCOMB CARLTON, PRESIDENT
BELVIDERE BROOKS, VICE-PRESIDENT
GEORGE W. E. ATKINS, VICE-PRESIDENT

oleeicx, 230t
TRLEPHON

Day Letter

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Nite

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COtWAI,

(.iRK 2544S.

30D RH 42 COLLECT BLUE
NEWYOrRe< !NY

Cro,

BENJAMIN STRONG

4)(4r

A EQT ESPARK COLO GC T 13 1916

/15'

4100 MONTV I EW BLVD DENVER COLO

MR TR EMAN MUST DELIVER ADDRESS

AT AT L ArT I CC

I TY NEXT WEDNESDAY AND

BE ABSENT FROM DIRECTORS MEETING

HE HAS WRITTEN MR LOCKE

TODAY URGING POSTPONEMENT OF HIS

RESOLUTION FOR TWO WEEKS AND

ASKING FOR REPLY IF UNAVOIDABLE

SYMBOL

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WESTERN UNION

RECEIVED AT

;

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P JAY
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words) this is a day message. Otherwise its character is indicated by the
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RECEIVED AT

WESTE47XSNA UNION
TEL
AM
SYMBOL

n age

wv.

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

CLASS OF SERVICE

SYMBOL

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BRANCH OFFICE, 230/ Z. COLFAX,
TELEPHONAwYORK 25!SA.

11 27D RH 43 BLUE 4 EXTRA CORRECTVi)

?le'
4,
CP,

,

1 916

104;YORK NY VIA ESTESPARK COLO OCT 13

BENJAMIN STRONG

4100 MONTVIEW BLVD DENVER COLO

TREMAN MUST DELIVER ADDRESS

OMR

AT ATLANTICCITY NEXT WEDNESDAY AND

6...±BE ABSENT FROM DIRECTORS MENING

HE HAS WRITTEN MR LOCKE

"TODAY URGING POSTPONEMENT OF HIS

RESOLUTION FOR TWO 'EKS AND

ASKING FOR REPLY IF REPLY

IS UNFAVORABLE WILL ADVISE YOU
P JAY

410PM

FEDERAL RESERVE BANK
OF NEW YORK

194.

My dear Governor Strong:

I enclose herewith an amplification of Ladenburg's statement.

I should like very much to get your views on the matter.

I

told Messrs. Guinness and Rosen that we would await a letter from you
before we took any action looking towards buying their bills.

We

received approval of the form of statement by the Federal Reserve
Board.

Mr. Kains was in to-day for a little while, and something
he said about the hospitality of the Denverites gives me an opening
to give you a little return lecture which will serve as an offset to
the one you handed me in your last letter.

In view of the disastrous

results of British hospitality in London, look out for Denver.
Sincerely yours,

Benjamin Strong, Esq.,
4100 Montview Boulevard,
Denver, Colorado.

WiRAH
Enc.




October 17, 1916.

LADENBURG. THALMANN & COMPANY

Mr. Rosen and Yr. Guinness stated that the item "Brokers
and wire

accounts' consisted of only four or five firms of high standing.

The item "Margin accounts" included the individual customers of
the firm.

Under the item "Unadjusted accounts," "Bankers, U. S. A.," are
some special funds deposited with American bankers.
"Bankers, Foreign," are exchange accounts with foreign banks.
'Secured loans," are some special temporary loans made on
-Jew York Stock Exchange and other securities.

In the balance sheet the item "Call loans" is not solely street
call loans but consists partly of these and partly of temporary demand

loans made to railroad, commercial and other customers of the firm.

Mr. Guinness stated that the condition of the balance sheet on
December 31, 1915, was more liquid than it wuuld usually be because at

that time the estate of'Mr. Thalmann was being appraised and settled up,
and therefore all doubtful items had been eliminated and reduced to cash.




Mr. Rosen states that the estate remains in the firm in full.

POSTAL TELEGRAPH
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10 reach its destination.
limits of the terminal office. For delivery at a greater distance a special charge will be
4. Messages will be delivered free within the established free delivery
,inade to cover the cost of such delivery.
until the same are presented and accepted at one of its transmitting offices; and if any
delivering the message and any notice or
Sio responsibility regarding messages attaches to this Company
....age is sent to such office by one of this Company's messengers, he acts as the agent of the sender for the purpose of
Sistructions regarding It to the Company's agent in its said office.

writing within sixty days after the
The Company shall not be liable for damages or statutory penalties in any muse where the claim is not presented in
S.
lansgreiii is filed with the Company for transmission.
well as the sender of this telegram.
I. The above terms and conditions shall be binding upon the receiver as
TO VARY THE FOREGOING.
I. NO VA,p..,0YEE OF THIS COMPANY IS AUTHORIZED
.

c.,IARLES C. ADAMS,
VICE-PRESIDENT.

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

CHARLES P. BRUCK
VICE-PRESIDENT.

-THE FASTEST TELEGRAPH SERVICE IN THE WORLD




TIME SENT, Ert.

Misc. 34

PJ/BAR
Postal

FEDERAL RESERVE BANK

n, NEW YORK

(TO BE MAILED)

7.

9:4b

CONFIRMATION OF TELEGRAM
We have today telegraphed you as follows :

BenjaLlin ,,,trong

October 19

1916.

EOci

4100 Montview Boulevard
Denver Colorado

Locke

Treman Woodward

absent

yesterdays

meeting

discussed

Pierre Jay
Oho. Fed. Res. Bk.
120 Broadway


B-2


Acceptance

matter

not

FEDERAL RESERVE BANK

OCT 24 1916

0F4?EW YORK

',170s
II 63

tu 4014

October 19, 1916.

Dear Governor Strong:

I have before me twenty letters from you, ranging from July 24th to
October 11th, not forgetting a whole lot of letters in telegraphic form, which
have come out in cleaning up my desk.

Now that October 15th is over I am go-

ing to start answering them right down the line.
They cover almost the whole period of your Colorado experience.'

the first one you say "The Denver doctor holds me down a good deal.
have one hour a day for work."

In

So far I

When I contrast this with the recent reports

brought back by Warburg and Kains it is evident that the intervening three'
months have made a tremendous difference in your condition and that you are
following the injunctions we laid upon you as you left New York, to put as much
energy into getting well as you had put into getting this bank into operation.
In looking over your letter of August 25th, I note the following:

"You and Curtis have really done the lion's share of the work while I get the
credit."

This is a most delightful evidence that your illness and life in

Colorado have not dulled your perennial sense of humor.

I agree with you,

however, that matters have been forwarded by the lack of friction in the office.
I do not see how life is endurable in some of those places where the relations
we have had here do not exist.

nth your letter of August 25th were enclosed

two letters, one concerning the use of the name of this bank in connection with
advertisements of securities or enterprises in which our directors are interested.
I am fully in accord with the view you express and shall endeavor to have a talk
with the gentleman to whom your letter refers during the next few days and report to you the result of it.



The other letter was with regard to your sal-

DERAL RESERVE BANK OF NEW YORK

#2

Benjamin S trong,

E$q.,

1419/16.

ary which has already been acted upon.
The next in line is your letter of August 31st to Yr. Treman about
the Bank of.England matter.

I think you have been kept advised of the prog-

ress, or rather lack of progress, of this.
Your next letter, dated September 1st is with regard to office organization and your offer to help in solving the puzzle of substantial competition.

Inasmuch as you deal with the organization matter more definitely in

a later letter I shall not discuss it here;

and the question of substantial

competition, as far as the present goes, is now behind us.

The next, dated September 2nd, is to Mr. Treman regarding the idea of
an independent agent for the reserve bank in New York.

You are right in think-

ing that I agree absolutely with your Views.

You speak of

bills for service charges in the collection department go out without careful analysis of the overhead.

I should be very much interested to learn whether you

felt the analysis we made, of which I think you received a copy, was a satisfac-

We took up the question of getting the A. B. A. to urge the numbering

tory one.

of checks to correspond with the district, and I have a letter from Mr. Thralls

saying that he will soon come to see me to talk about it.
up at the Clearing House Section in Kansas City.

He agreed to take it

The other matters touched upon

are largely those which have been attended to or will come up in subsequent correspondence.

The next is yours of September 4th to Mr. Treman in which you suggest
making an effort to put out more Federal reserve notes.
putting them out in quite large volume.
to do so in order to save expense.

We are doing this and are

Some of the other banks are tempted not

You no doubt saw in the October Bulletin cor-

respondence which the Federal Reserve Board had had with Atlanta concerning the
desirability of issuing Federal reserve notes instead of withdrawing gold from the
gold settlement fund and putting that in circulation.




We learned confidentially

Benjamin S trong, Esq.,

RESERVE BANK OF NEW YORK ..#3

10/19/16.

the other day that the City Bank was shipping 4.300,000. of our Federal reserve

nQtes to the First National Bank of Chicago.

We shall have to pay the cost of

issuing and the cost of redemption on these.

It seems a rather interesting

commentary on Forgan's position.

You are quite right in your view that the

directors felt that there should be certain other salary adjustments at the time

Mr. Higgins was appointed assistant cashier, but they were anxious to leave these
until the first of the year when the subject would be taken up generally.
The next is yours of September 6th to Lir. Curtis relating to the Bank

of England matter which will come up in connection with a later 2etter.
The next is your letter of September 9th to me relative to the answering of my telegram concerning Clayton Act matters and giving your views in a very
interesting and valuable way concerning forms of competition and those who compete.
Your letter of September 15th to me is on the same subject, and I must
thank you in this connection also for your telegrams of September 8th and 11th.
I have already wkitten you partially concerning the Clayton

Act discussions with

the Board, and Warburg has undoubtedly given you every detail of the matter.

was very disappointed also at the outset when the Board decided to reduce the line
from 4200,000,000. to 0_50,000,000.

This feeling, however, was somewhat modified

by the belief that if the Bankers and Guaranty were included and the Farmers excluded with its eleven joint directors with the City Bank the result might cause
a feeling that there had been discrimination against certain interests.

One of

the unfortunate results of the lowering was that it declared the Commerce in competition with the Central Trust Company and they had four joint directors, which made

Mr. Alexander feel very

unhappy

with the Board on the subject;

and he went so far as to have a special interview

but I believe they did not feel them could make an

exception in that case without changing the whole arrangement which they were unwilling to do.

As a matter of fact it simmered down to Mr. Jarvie, as Messrs.

Iselin and Lanier were private bankers and Mr. Julliard would have stayed with the




FEDERAL RESERVE BANK OF NEW YORK

Guaranty anyhow.

10/19/16.

Benjamin Strong, Esq.,

#4

So

The Bankers Trust Company, of course, lost very heavily.

far the only new director they have elected is Mr. McEldowney of Pittsburgh.

The private banker situation, about which I have not written you very
much except to send you a copy of the private banker announcement of the Board,
caused a good deal of work and has caused a good deal of unhappiness on bank
Moses Taylor,- Adrian Iselin, Jr., Ernest

The following were affected:

boards.

Iselin, Charles Lanier, Beekman Winthrop, H. P. Davison, H. D. Kountze, Henry
Ickelheimer, and one or two others.

Through the private banker and Kern amend-

ment decisions Woodward has lost six or seven directors;
The Mechanics, four or five;

ers, two;
two;
ten.

Seaboard, one or two;

etc.

Commerce, ten;

the Importers and TradPark, one or two;

The Guaranty lost four;

Chase

the Bankers nine or

I have not heard just how the City Bank and Farmers Loan situation adjust-

ed itself.

There have also been some separations in the smaller planes.

The

Albany Trust Company had to unscramble, also one of the trust companies in Paterson.

There were one or two cases in Newark, Buffalo, Syracuse, Watertowl and

Utica.

In Bridgeport, the First-Bridgeport, of which Er. Sanford, director of

the Federal Reserve Bank of Boston, is president, had seven interlocking directors

with the Bridgeport Trust Company, and the City Bank of Bridgeport had three.
These had to be separated.

The total number of applications, irrespective of

private bankers, have been somdthing over 330.
left is an extremely sore one.

The feeling which all this has

I think that owing to the fact that the adminis-

stration of the law was placed upon the Federal Reserve Board a great deal of the
blame for the results is put upon the System.

The banks here, I think, resent

particularly the decision of the Board to consider the large banks and trust companies in competition, even though the nature of their businesses may be quite
different.

Curtis and I are talking about amendments along this line, and hope

to have something definite to suggest soon.

Judge Elliott told me in Washington

the other day that he felt quite sure that if the Board had made any point of it



FEDERAL RESERVE BANK OF NEW YORK

45

Benjamin Strong, Esq.,

10/19/16.

private bankers could have been included in the Kern amendment on the same basis
as incorporated banks.

Your letter of September 13th refers to the loss of gold through the
gold settlement fund and our difficulties in New York.

The more I think of this

situation the more it seems to me that most, if not all, of our difficulties arise
istko
through the policy of the New York Clearing rouse in settling in silver and legals
as well as in gold.

The situation has got to be settled, (a) either right here

in New York by throwing silvers and legals out of the Clearing House and putting
it on a gold and Federal reserve bank basis, or (b) outside of Hew York throughout the country at large by discrediting New 'York exchange.

To do the latter

would be to work a grave injury to New York as well as to fly in the face of a
natural tendency.

New York exchange is the settling medium all over this coun-

try, just as London is the

ettling medium all over the world.

If the Federal

Reserve System is able, and I doubt its ability, to discredit New York exchange
throughout the country by receiving only for deferred credit it might very much
damage New York's financial position.

On the other hand, if New York is to re-

main the settling center I do not feel as though it were very desirable for us in
order to relieve our own local difficulties arising out of our clearing house sit-

uation here, to be erecting barriers against the free flaw and trading in New York
exchange in other places in the country.

It seems to me that if New York is to

be the settling center it has got to stand the gaff and if settling gives it indigestion it aught to take something to cure the indigestion such as gettin; silvers and legals out of the clearing house.
However this may be a superficial view of the situation, and some time
when you have time I wish you would write me a page or two giving me your views
as to whether it would be wise for us to take the matter up with the clearing house
committee for a serious disctssion in the near future.

It may be that you will

think that some changes in our circulation laws are necessary before they can do
this, but unless you feel that such changes are very necessary we in the bank here



1419/16.

Benjamin Strong, Esq.,

FEDERAL RESERVE BANK OF NEW YORK

would like very much to go ahead and see if we could not make some progress towards
t-e-

getting the clearing house on a gold basis.

I note your claim of 0.85 for the telegram you sent me at WashiTton.
and I am enclosing a check.

I presume that you are keeping track of other tele-

grams as well and will render us bills at convenient intervals.

Please advise

whether I am correct in my assumption.
Your letter of September 16th refers to the sale of the 3% one year notes
concerning which I think there is nothing more to say just at present.

It also

refers to Warburg's address and your belief that it will call for "yards of editorial from the Chronicle."

Your expectations in this respect were amply justified.

I understand from one of your letters that you are preparing an article on this
subject for one of the papers, which I hope you will send along soon.
sure that the New York Times would not be the best place to use it.

I am not

It has a very

wide circulation and would probably be copied by some of the financial papers,
whereas if we put it in them first the daily papers would not use it.
I have just now had a call from Er. Ward of the Commerce about a new di-

(

1

rector which they are electing, and have learned from him that the Board granted
permission to Mr. Jarvie to serve as a director of the Bank of Commerce and the
Central Trust Company.

I must say that while I am very glad for their sake I am

astonished at this action of the Board, since it seems to me to break up entirely
the whole theory by which they declared the large banks and trust companies in substantial competition.

I am writing Warburg a letter about it and shall send you

a copy of his reply.

Your letter of September 20th relates to the salary matter, which has
been attended to, and your letter of September 21st refers to your answer to the
Chronicle which I am glad to see you suggest publishing in the Times.

Your let-

ter of September 29th refers to Clayton matters already deahwith.




Your letter of October 4th begins the discussion of the question of

RESERVE BANK OF NEW YORK

1 cy 19/16.

Benjamin Strong, Esq.,

#7

the advisory council member, on which we all seem to be agreed, and of the question

of

the directors of this bank.

Woodward's view.
in this matter.

I think I have written you quite fully Er.

Unfortunately some complications have arisen in making progress

The committee of the New York State Bankers Association, having

learned from Mr. Woodward that he would probably not permit his name to be suggested by them, waited on Er. Alexander and asked him to permit his name to be
used.
us.

Perkins was the one who saw him.

He came from seeing him direct to see

He reported this as Er. Alexander's position:

That I had asked him a month

or so ago (This was before we knew that the committee of the New York State Bankers
Association had been appointed) to ascertain the views of some of the bankers here
on the question of Woodward's reelection.

He had done so and had reported to me

that they were generally favorable to his reelection but that they believed in the
principle of rotation.

He said, however, that in the course of some of his con-

versations some of the bankers had suggested that he, Alexander, would also be a
good director, whereupon he had assured them that he was entirely out of it, etc.
etc.

In view of the position he had taken with these gentlemen he felt it im-

possible to allow his name to be suggested this year.

Er. Treman and I immediately

went over to see him and urged him to reconsider, but he was absolutely firm and
said that he could not possibly do so without compromising himself with these other
people which he would not thInk of doing.
and unfortunate turn in events.

This, of course, was a most unexpected

Perkins then endeavored to get Vanderlip and

Hepburn, but they both declined and said thay wouldgo and try to persuade Woodward.
They called on him but I do not think they made much headway.
this afternoon and find out what the next move is.

I am to see Perkins

Our latest understanding was

that if their efforts were unavailing he would talk with Er.

7iggin.

I may send

you a hurry call telegram some day very soon invoking your influence with some of
these people.




We have really struck a most unfortunate situation.

Woodward, as you know, believes that this is the year to establish rota-

RESERVE BANK OF NEW YORK

#8

Benjamin Strong, Esq.,

tion, or at least non-permanency, in office.

10,719/16.

Mr. Towne's position is similar,

and he feels that the establishment of the rotative principle may perhaps be
more valuable in future than this year.

.I am on the whole in favor of the ro-

tative principle as the safest one for this bank, at least for the next ten or
fifteen years.

I regret extremely to lose such men as Mr. Woodward and Mr.

Towne, but hope that we can replace them by other good men and that through the
medium of the machinery which has been created we can gradually assure ourselves
of good nominations right along.

I note the suggestion in your letter of October 4th as well as in another letter, that if there is to be any change in the
Northern New Jersey should be represented.

Class B director

This matter has been discussed quite

fully in the committee and it has been the feeling of the committee that in view
of the facts that this is the year for the larc:e banks to elect, and as the New

York City banks provide 90% of the resources of this institution, both of the
representatives to be elected this year should come from New York City.

It has

held the view that next year one of the places should go to New Jersey and I have
,ather encouraged that view and suggested that when New Jersey's term came the
committee should nominate three or four men from New Jersey for the vacancy in
question and none froin anywhere else, frankly stating to the electorate that this

is New Jersey's year, just as they would state at some other time that this is
the

for Eastern New York State or Western New York.

You c

that if each year they nominate one from New Jersey, one from upstate and one
from New York City, we would merely have confusion and the upstate New Yorker
would always win.
each vacancy.

The committee will always suggest three or four names for

For the Class B vacancy they have suggested Mr. Towne, Mr.

Outerbridge and Er. Stone of the American International Corporation. Er. Outerbridge has definitely reo,Zuse4;

Mr. Stone is considering it;

and Mr. Towne is

awaiting a conference with Mr. Woodward when the Class A matter is finally de-




ESERVE HANK OF NEW YORK

Benjamin Strong, Esq.,

#9

10/19/16.

termined.

Your letter of October 5th reiterates in a very clear way your views
about the policy of the bank in purchasing acceptances with which, of course, we
are all in hearty accord.

I am very glad to learn that you have discussed the

matter fully with M. Vanderlip and that he approves of our present policy.

I

am sending a copy of, X portion of your letter relating to your own views to It.

Towne, Mr. Peabody and Mr. Woodward as I think they would be interested in reading it over.

Your letter of October 6th relative to Aiken I won't discuss at this
moment as it is rather late in the afternoon and I want to get through the rest
of your letters.

I am very interested in what you say about the probability of elasticity
in English bank notes after the war.

It is a satisfaction to learn that Mr.

Vanderlip approved of the English and French relations.

He undoubtedly told you

of his own purchases over there, and I see by the papers that a good many of our

New York banks are following suit so that we apparently have quite a position in
London.

Next cofe two letters of the 11th to Er. Treman.

O

Guaranty Trust Company line, in regard to which your suggestion seems entirely
I think Mr. Treman th taking up the question of our allotment of in-

in order.

vestments.

With regard to the Bank of England matter, I feel personally that it
would be inadvisable to try to have Curtis see Polk or to do anything about it
until after election.

That is only two and a half weeks away.

I feel that the subject can probably be discussed on its merits and will be a
::elcome instead of as at present an unwelcome subject, and that our chances of

success will be such greater if we have a little patience.

I expect to be

over in Washington next week at a meeting of the executive committee of the Re


(

_ RESERVE BANK OF NEW YORK

Benjamin S trong, Esq.,

#10

10/19/16.

44.4Z7 t4elja,

0*,r

serve agents, and will make inquiries as to whether there is

progress.

I understand from Mr. Kenzel that the Whitney Central National Bank
has

given us all the information we reauire.
With regard to your other letter of October 11th to Mr. Treman, I

note that you are making a study of currency legislation and are thinking of
having Mr. Roberts come out and visit you a little later.

At the May meeting

of the Reserve agents a standing committee on this subject was appointed of

which I am the chairman and Messrs. Hardy of Richmond and Austin of Philadelphia

t

are the other two members.

We have not yet had a meeting, largely because I

have been too busy on other matters, but the time is soon coming When we shall
have a meeting.

If you are taking this matter up in a.thoroughgoing way there

really is not much sence in our doing anything unless you can suggest some ways
in which we can cooperate with you.

I should be glad to have your views on this

point.

We voted at our meeting yesterday to send the Nederlandsche Bank a bill
on the basis of the original agreement as recommended b:r you.

With regard to Ladenburg, we shall have further advice from you after
you have looked over the statement.
of the action of the Board.

In the meantime I have not advised Mr. Rosen

I am a little inclined to go stronger on the Ques-

tion of surplus after dividends than the suggestion indicated by you.

TS have

looked up the question of the governor's recommendations and find that it relates
not to the period up to which dividends should be declared, but to the time of
declaring the

namely, annually or semi-annually on July 1st and January 1st.

Answering

our letter of October 11th I have already given you fairly

fully the slaeertten with regard to directors.

With regard to the salary matter it was fully considered by the officers
and later by the board and has been thoroughlyapproved by the Reserve Board in
Washington, so I trust that you will feel satisfied.

While we miss you tremen-

dously in the day to day grinding of the mill, the kind of work you can do out




,- RESERVE BANK OF NEW YORK

#11

Benjamin Strong,

Esq.,

10/ 19/16 .

there free from disturbance is perhaps even more valuable, and if you have any

feeling about running along at half pay I want to say that the System is driving
a hard bargain with you when it only gives you half pay.

I am not surprised

that you hare from time to time in moments of discouragement perhaps thought of
not coming back to the bark, but I want to assure you that that is a thought
which has never crossed our minds here as we all feel perfectly -

t that

you are going to be back here with us when you are entirely ready to do so, even
though you will probably find it advisable to take up your work here in a much
more eclectic fashion and only hitting the high spots.

Mr; Curtis has had Crane working on your letter relating to the amendment of the Clayton Act in regard to private bankers and I think is going to write
you in a day or two.

We were discussing it to-day at lunch.

With regard to the last paragraph, giving me your lecture, I have already
replied specifically and in kind.

The postscript relates to the election of di-

rectors which I have already fully covered;

to Muller Schall & Company, in regard
to

to which I shall gladly adopt your suggestion and see Mr. McGarrah to-morrow;
the clearing house matter about which I will speak to Mr. Treman to-morrow;
the state department matter to which I have already referred.

to

The letter of which

I meant to send you a copy was one from Governor Harding which I cannot lay my hands
on at the moment as the files are closed, but which merely stated that he believed

the matter should not be pressed now and that if it were pressed it would probably
result in an adverse decision.

Now having gotten up to date all except your letter regarding Aiken,

which I shall try to handle to-morrow, I shall try to keep up to date and write
you more freTaently concerning matters of interest here.
correspondent/in

You have a mighty good

11 such matters in Mr. Treman and we must look out that we do

not duplicate one another's letters.




Mr. Treman and I get each day a little statement of the work of the

RESERVE SANK OF NEW YORK

#12

3enjamin Strong, Esq.,

10/19/16.

to me that it might also interest you,
transit department, and it has occurred

have a copy mailed to you each day.
so I am asking Ir. Jefferson to
screed won't knock off too many
Hoping that the reading of this long
with my very best regards, I am,
of your recently gained pounds, and
Faithfully yours,

Benjamin Strong, Esq.,
4100 Liontview Boulevard,
Denver, Colorado.

PJ/RAH
Enc.




FEDERAL RESERVE BANK
OF NEW YORK

4dez.

,

October 19, 1916.

Dear Mr. Strong:

Yesterday Er. Curtis and I lunched with Mr. Kent.

Mr.

Kent said that in your absence he wished to advise us from time to
time on matters of interest and that he had just concluded arrangements from the French side to form a one hundred million
C".12.4-Zr

dollar syndicate.

He has been working on it for several months.

Doubtless you are familiar with the arrangements,under which a
large number of American banks, perhaps three or four hundred scattered all over the country, would provide acceptance credits for a
large number of French industrial houses.

The terms of the credit

are as follows:

One original.amd five renewal drawings of ninety days
each.

The rate - 5L-% and.,:1--go commission.

The security - 100%

French Treasury bills payable in gold in New York and lodged with
the Bankers Trust Company; 20% margin of neutral securities lodged
with some institution in France.

The syndicate managers are the Bankers Trust Company, the
Guaranty Trust Company and Wm. P. Bonbright & Company.

Of course

the matter is as yet very confidential as the arrangements have not




FEDERAL RESERVE BANK OF NEW YORK

2 IL

Benjamin Strong, Esq.,

been taken up definitely with any American banks.

10/19/16.

His idea, however,

is to get banks from many interior places, even some small places, to
join the syndicate, which will be of the greatest value in giving them

a demonstration of the way the acceptance business is done, will bring
them in touch with a large number of foreign commercial houses and

viliplead also to their becoming buyers of acceptances.

This latter

end seems to me to be a feature of the development of the market to
which we should soon begin to pay attention.
gestions as to how we should go about it?

Can you make any sugWhat do you think of our

getting out a circular on the general subject of the discount market
and its development, and, perhaps, getting some of the other Federal
reserve banks to use it as well?

If you think well of this I shall

be glad to line up something and send it to you for your blue pencil.

We feel that we should soon get out a circular with regard
to the permission banks now have to keep all of their reserves with
us.

Have you any particular views with regard to the manner

which we should approach this matter?

in

It occurs to me that you may

have discussed this quite fully with Mr. Vnnderlip.
A few days ago Mr. Hamilton, of J. P. Morgan & Company,
came in with a message he had from Mr. Morgan in London, suggesting
that perhaps we would be willing to buy from them, temporarily, some
of the gold coming into this country and which is arriving at a rate
much faster than the Assay Office can handle it.

will

As the Assay Office

purchase from them only the amount it can hale on a particular

day, the result is that there is often a large supply stacked up in
the Assay Office awaiting treatment, which cannot be put into circulation or used.




FEDERAL RESERVE BANK OF NEW YORK

3._

Benjamin Strong, Esq.,

10/19/16.

We told Mr. Hamilton that we should like to help out if we possibly could, and, having obtained the approval of the Federal Reserve
Board and of our board of directors, we are now arranging with the
clearing house to borrow some more vault space, of which they have quite

a little owing to shipments of currency to the west, and to buy perhaps
fifteen millions to twenty-five millions from Messrs. Morgan & Company,

which we might hold for from two to four weeks or until the Assay Office
may be free.

We would give them our cashier's check on the same basis

as the Assay Office, and they would guarantee the contents of the boxes.

These boxes hold about 430,000. each, contain gold bars, and came forward
under the British Treasury's seal.
We feel that inasmuch as they have helped us out with gold
in a most generous manner, (we having received about sixty million
dollars from them since the middle of August), we should now reciprocate.
I trust that the plan meets with your approval.

Mr. Curtis is looking

tr

out for the legal end of it to see that we are properly protected.
In this connection

Mr. Higgins made a

trip to York, Pa., last Friday in company with Mr. Holmes to study the
progress of our vault.

Unfortunately, one of the castings for the

vestibule was defective, which put the workmen back considerably.

They

are now working twenty-four hours a day in three shifts, but do not agree
to deliver to us, finished, until the first of March.

As soon as he

made the report, on his return, I asked him to take the matter up with

Mr. Horowitz and he has agreed to see what he can do towards hurrying the
matter to a conclusion.
appointed at the result.




Of course, I was very much surprised and dis-

We have a 000 a day penalty under our lease

FEDERAL RESERVE BANK OF NEW YORK

.. .

4

Benjamin Strong, Esq.,

10/19/16.

to fall back on, but what we want is the vault.
In this connection we got our directors at the meeting yester-

day to agree that when the clearinghouse officers have to call on us
to gain access to their compartments in the clearing house vaults, it
shall

bank.

require only one of our officers to be present representing the

No change, of course, was made where access shall be had, by the

agent, to the boxes of the bank.
As a great many small bills are being shipped west now, of
late we have had to have two seniors and two juniors spend a great deal
of what seems perfectly unnecessary time at the clearing house, and the
new ruling will be a great relief.
I am glad to say that most of the vacations will be over in
another ten days or two weeks.
Mr. Sailer are away.

At present Mr. Hendricks, Mr. Cann and

This makes a very thin line in the outer office

besides drawing on other people's time for vault and other duties.

Mr. Kains was in the office a few days ago and told me, very
confidentially, of the discussions he had been having with certain
people with which I understand you are familiar.

It was a great satis-

faction to learn from him just before he left that he is not likely to
make any change.

Very truly yours,

Benjamin Strong, Esq.,
4100 Montview Boulevard,
Denver, Col.

PJ/HAB



)

Benjamin Strong, Esq.,

FEDERAL RESERVE BANK OF NEW YORK

10/19/16.

to fall back on, but what we want is the vault.
In this connection we got our directors at the meeting yester-

day to agree that when the clearinghouse officers have to call on us
to gain access to their compartments in the clearing house vaults, it
shall
bank.

require only one of our officers to be present representing the

No change, of course, was made where access shall be had, by the

agent, to the boxes of the bank.
As a great many small bills are being shipped west now, of
late we have had to have two seniors and two juniors spend a great deal
of what seems perfectly unnecessary time at the clearing house, and the
new ruling will be a great relief.
I am glad to say that most of the vacations will be over in
another ten days or two weeks.
Er. Sailer are away.

At present Mr. Hendricks, Mr. Cann and

This makes a very thin line in the outer office

besides drawing on other people's time for vault and other duties.

Mr. Kains was in the office a few days ago and told me, very
confidentially, of the discussions he had been having with certain
people with which I understand you are familiar.

It was a great satis-

faction to learn from him just before he left that he is not likely to
make any change.

Very truly yours,

Benjamin Strong, Esq.,
4100 Montview Boulevard,
Denver, Col.

PJ/HAB




CONFIRMATION OF NIGHT LETTER

October 21, 1916.

Benjamin Strong, Esq
4100 Lontview Boulevard
Denver Colorado
Announcement in todays papers of new one hundred million dollar French industrial
acceptance, credit arran:;.ed by Bankers Bonbright and Guaranty led to Hardings telephonang
me saying he and associates informally felt system had about enough of this class of
bill that banks should understand system in no way obligated to purchase them and
that Board thought it might be advisable to make public statement indicating that
while system was willing to purchase such bills to reasonable extent it could not be
expected to hold the bag Stop I urged against makinc, statement and Kent is writing
long letter describing situation Stop Shall be in Washington Thursday and have
written liarding suggesting bringing Kent aver
If you have any suggestions should
welcome them in case of further telephonic discussion with Washington Monday Stop
oodward will probably accept renomination
Pierre Jay

Ck;e. Fed. Res.
120 Broadway.




'inn's,'




ps OF SERVICE SYMBOL
age

Moe
ago

_

ettor
.ane of these thr

NIte

NL
symbol.

are ah, the ch., number of .
Is) this is a day message. Othe
its character is indicated be -

.1 Mono after the c'

4

no

EST'
TEL

ION

AM

NEWCOMB CARLTON, PRI:MIDI/NT

.eck

CE1VED AT

915-919 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.

ALWAYS OPEN.

569CH'137 NL
DA NEW YORK NY 21

BENJ STRONG

4100 MONTVIEW BLVD DENVER COLO
'ANNOUNCEMENT IN TODAYS PAPERS OF NEW ONE HUNDRED MILLION, DOLLAR

,FRENCH'INDUSTRIAL ACCEPTANCE CREDIT ARRANGED BY BANKERS BONBRIGHT'AND
GUARANTY LED TO HARDINES TELEPHONING ME SAYING WE:AND
'ASSOCIATES 'INFORMALLY FELT SYSTEM HAD 'ABOUT ENOUGH OF'THIS CLASS 'OFt

BILL.THAT BANKS SHOULD UNDERSTAND SYSTEMIN NO WAY OBLIGATED'TO
PURCHASE THEM AND THAT BOARD THOUGHT

IT MIGHT BE ADVIABLE'TOMAKE

PUBLIC STATEMENT '/NDICATING THAT WHILE SYSTEM WAS WILLING 'TO




Blue
A essage

WES

NIte

ight Letter
NL
ne of thee three symbols

ears after the che.7k (number of
ds)this Is a day message. Other) its chancier's indicated by the

EL
_.7
wisTE

TEL

UNION
tNigN

AM

NEWCOMB CARLTON, PRESIDENT

bol appearing after the check.

CLASS OF SERVICE SYMBOL
Day Message

Day Letter

Blue

Night Message

NIte

NL
If none of these three symbols
Night Letter

appears after the check number of
words)this is aday message. Otherwise its character is indicated by the

symbol appearing after the check.

CEIVED AT 915-919 SEVENTEENTH STREET, DENVER, COLO.

ALWAYS OPEN.

A569CH SHEET 2

PURCHASE SUCH BILLS TO REASONABLE EXTENT
EXPECTED TO HOLD THE BAG STOP

IT COULD NOT BE

URGED AGA I NST MAY I NG STATEMENT AND

KENT'IS WRITING LONG LETTER DESCRIBING SITUATION STOP
SHALL BE IN WASH I NGTON THURSDAY AND HAVE WRITTEN HARD I NG SUGGESTING

BHINGINa KENT OVER IF YOU HAVE ANY SUGGESTIONS SHOULD WELCOME.THEM

IN CASE OF FURTHER TELEPHONIC DISCUSSION WITH WASHINGTON MONDAY STOP
WOODWARD WILL PROBABLY ACCEPT RENOMINATION
PIERRE 'JAY.

POSTAL TELEGRAPH
iVED AT MAIN OFFICE
CST

EEE SUILDINCS

920 11TH STREET

Dt.NVER, COLO.

.TELEPHONE: MAIN 4600

COMMERCIAL CABLES

TELEGRAM

DELIVERY NO.

ThiPostal TelegraphCable Company( Incorporated)transmits and delivers this message subject to the terms,end conditions printed on thP back ot the blank .
16D-29018

6 DM .
3 NY. N. 329
013., Nev York, Oct 23, 1916

DESIGN IGTENT I.ONO

6'

Banjamin Strong, MIN.,
4100 Montview Boulevard, Denver, foln.

Without advising us board sent following telegram today to all federal
reserve agents stop %Roard in advises that an acceptance credit approximaing one hundred million dollars drawn on American banks and Trust companies

is about to be concluded on ninety day drafts su-bject to five renewals
the accepting banks committing themselves to advance the money to the
foreign borrowers at five and one half percent per annum plus acceptance




Me

AL

POSTAL

riiir- -Or
J4

r-.
,

A

_

PAL

'

d

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464046 /40

.44 j

+

4"

GISCOUVE

C.

4,

- SENT, r

aame.www.

44 Cl A N -.1,4146.

.

VT" 12
111
00,......",(YoK0H.A.4

6,

I

-VS NOT s41.1,

7)F

41.

GUAM

AND CABLE SYSTEM IN THE WORLD,

THE GREATEST TELEGRAPH
-

THE P.OSTAL. TE t G

EXTENDS OVER TWO-THIRDS OF

THE WAY AROUND THE EARTH.

6411fLejetVII5OWt.t;:,,t- .4..

AWIOnt

-

GiiTEHNLSzyr CANDTADVS1

SUBJECT TO THE FOlt.il-gWiN.
W .., 4*
Ile
TRANSMITS Amilij2 E to sys Tit 4 WATHIN TELkireM 41' cfer -it' R i:Plit tD; tint is, telegrap ed tvult to the okinatiradffiee tot'.
'
,..... v *Fig
T 4
'
or.*
It
indicated on its face, THIS IS AN UNREPEATED
or delays, the sender of a telegram _

.

in addition. Unless otherwise
To guard against mistakes
maparison. For this, one-half the unrepeated telegram rate is chargedaaresd between the send v of the tel
'ELEORAM AND 4411, y4.1.R ,AS..p. l;Cil, i c n derationjhereof it is

m and this Company as follows:

f any NREPEATED telegram, .beyond-the
beyond
i 4ealat117. telagranenitgsion oLdgligirrAilidtae4l.
or on-delivery, of ahy REPEATED telegram,
.
or
The companyVialkia belfMorgr nor for mistakes or delays in the transmissionnordelivery, or for delays arising from unavoidable interruption in the
in any case

mount receiv'ed for sending the same;
.
-:fty times the sum received for sending the same, UNLESS SPECIALLY VALUED;
for-tSe non-delivery cl this
whipitS.N...ompig:R OR OBSCURE TELEGRAMS.
a 05.4iipa °tits. lines.: NOR 1,04.
this telegram, if
1113/mtefor damages for any Mistakes or delays tn the transmission. ..Or delivery, or
telegram rate, at which amountthe Company tot
'In'attrevent'ille 'dolltrailY dilidA not
beyond fifty times the REPEATED time th&telegmm is offered to
telegram, whether caused by the negligence valued, unless or greater value is stated in writing hereon at the
of its servants a otherwise,
..
sent as a REPEATED telegram, is hereby wry* tollswit&based on such value equal to one-tenth of me per cent. thereof.
ransenitisiontjaVn'ottionalesinnirbor
telegram over the lines of any other Comminy wheii necessary.'
.

.

.

.

.

out liability, to-forward this

tnol;.matle Vikent Of the seridEf,
The Cefa
S.
greater distance a special charge will be
:c. reach its destination.
established free delivery limits of the terminal office. For delivery at a
Messages will be delivered free within the
transmitting offices; and if any
4.
one of its
nade to 4ver theIcoateauch delivery...-: A.S1. Company until the same arr presestedtar(***epted atof delivering the mesSage and any. notice or__.
attaches to this
the agent of the sender for the purpose
No responsibility rekrding messages
nessage is Sent-to such office by one of this Company's messengers, he acts as
dart after Ws
iartructio. regarding it to the Company's agetst in its said office.
in any case where the claim is not presented In writing within aiirty
S.

The Company shall not be liable for damages or statutory penalties

zlegram IS filed with the Company for transmission.
well as the sender of this telegram.
p above terms and conditions shall be binding upon the receiver as THE FOREGOING.
COMPANY IS AUTHORIZED TO VARY

I. 'NO EMPLOYEE OF THIS

i.

t.

/

'1

.

.4S.
,RESIDENT.

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

CHARLES P. BRUCH,
VICE-PRESIDENT

THE WORLD
FASTEST TELEGRAPH SERVICE IN



4

POSTAL TELEGRAPH
'AT MAIN OFFICE
RAMMER BUILDING

120 17TH STREET

DENVER, COLO:

/-

TELEPHONE: MAIN 4600

COMMERCIAL CABLES

CLARENCE H. NIACKAY. DRESIDEPrr.

TELEGRAM

DELIVERY NO

The Postal Telegraph-Cab':: Company(Incorporated)transmits and delivers this message subject to the terms 4Ind conditions printed on the back of this blank.
16D-29018

(a)

DESIGN PATENT SA ain

commission of one fourth percent for each three months. In view of
widely circulated press statements that these acceptances will be eligable
for rediscount or purchase by federal reserve banks board deems it its
duty to point out that banking prudence and obligations toward general
commercial interests of the country require that federal reserve banks
should not acquire acceptances of this character beyond a conservative
amount this view is consistent with the boards

policy in the past and

while it wishes through all legitimate means to promote

of the American acceptance market

the development

and to further the growth of all export

trade and while it wishes to avoid any attitude of interference with the



SOSTAL 4E4_
4 ItaL
JAPtibi

I

ar,
a

_

1,

Tilt1V4T,

LAzia

44440

PACIFIC

YOKOFIA

-A

aCE It1.2`,.

VANCouVE

fr-MCI3C4.4

AN PSI
*.4.0714.

miOWAv

.140 OM
.4;4 et 1,44a
THE GREATEST TELEGRAPH AND GABLE SYSTEM IN THE WORLD.

.

-

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

4

THE POSTAL TELEGAAPPICAt3LE COIVIPANt%ptlia..t.t4"'"11 31114(
TRANSMITS .AN,I) 9ELIVErS ,314E. .2-jr,TEfriatmauBJEACTT:Ga .LTEE FOLLOWING. TERMS piNRIFjoN91.Ttoy s:, .
itir ttitieTs." telekranhed bitt 'fo "tgrtfrillnatTnrietat. Cr-, il'AVAPc 4To guard against misted: or delays: le s&nrer of a telegriiifrefioral*ordeFIF it..
tomparison. For-this, one-half the unrepeated telegram rate is charged in' addition: Unless otherwise indicated on its face, THIS IS AN UNREPEATED
rELKGRAm A,:str) PAID ._E.Pit 4....., sqcx, ln contOstaatioili:t14reof it is Naceedletwe n the sender of the telegram and this Company as follows:
lor 181,4111416hjaViy itainpairE DDT ijqwqr beytma 104:,
illitnallikio
The OomminSishaillitlYbeiliablief or Inisihkesithg
1 t .
mount received for sending the same; nor for mistakes or delays the/rans salon or deliv7ery,._or or non-delivery, of ari7 TUVE:STE te egret, beyoffir
1.

.4

'

.

-

f ty times the Sinn received for sending the same, UNLESS SPECIALtYNALUF,D1-nor in any case for delays arising from unavoidable .ferftption in the
.
VVQLANS., . ...., ,,
orhIng,rot,,its,ligns; NQR.ROR Iiililign AkT,Cllitlif.141LQBSCI.I
liettys In- th4 *anew *eV elbettelfieryMbtel,foretli AP-akiiieridPk, till;
. "Iti attY ?tithe the ettillffilteSilian ffi4VirltablehbfeNR4Mils fOrligilet.
: legram, whether caused by the negligence of its servants or otherwise, beyond fifty tiniertlie REPEA,YED telegram ratikAt Which amount this legra 1, i
.nt as a REPEATED telegram, is hereby +mined, unless a gfeater value is stated in writing hereon at the time the telegram is offered to the Company for
aim:oven. annt5ifid..alimEn pad caiagreqatrbe %fad ISAmlirotivalloo lalue: emg&I to Jaggig.,_,Ab of.one- pekigientr..t.bpriipf,, - . ,,,, ......

...

)4 lilltaror 4

ViRorsd.W Wve.,101HAFW stfiPottdmillii, wtietiFfiecsid40.11 C 4

e. The C414mY-TiteociliffY ommit thragml ofIFErAYGES.A1Fitlie
.
.
.. reach its destination:.
.
..
4. Messages will be delivered free within the established free delivery limits of the terminal ofliee. For delivery at a greater distance a special charge will be
.ade to cover the cost of such delivery.
.

,.

L"
No responsibility regarding messages attaches to this Colan'y until the same are presented and accepted at one of its transmitting offices; and if any
.-,e Is sent to such office.py one of this Company's messengers, he acts an the ageritef the
p.ra agent in iti said office.
:low regarding tt to

uder./or. tile nurpose of delivering the message and any notice or

liable for dainages.or statutory penalties in any ease where the claim is not presented In writing within aixty dart after tin
rrgram is filed with the Corn
..
for transmission.
.
Tirabove terms and conditi shall be binding upon the receiver as well as the sender of nits telegram.
..'..0 EMPLOYEE OF THIS Cs PANT IS AUTHORIZED TO VARY THE FOREGOING.

he Company shall

.

-

'

"...) ADAMS, .
t.

s

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

CHARLES P. BRUCK.
VICE-PRES.:MEET

..CE-PRESIDENT.

FASTEST -NELEGRAPH SERVICE IN THE WORLD




!.

.

L TELEGRAPH - COMMERCIAL CABLES
r4 OFF/
iVED AT
...Mau, UILDINS
920 17714 STREET

0,NVEti, COL(

TELEPHONE: 161IN

4900

he Postal Te _grach C

CLARENCE H. MACKAY, PRE SIOENT

-

TELEGRAM

DELIVERY NO.

-y( Incorporated )transmits and delivers this message subject to the terms end conditions printed on the back of this blank.
DEOfiN PATENT N. 40128

powers 'of

(n)

M

banks in this respect board feels nevertheless that it

haalirpe clearly understood that these acceptances which represent
for cash advances aggregating a very large amount by the

sccepters for eighteen months, cannot woperly be regarded as paper
self liquidating within a period of ninety days if offered in excessive

be obliged to discriminate against or

amounts federal reserve banks may

to exclude

entirely acceptances of

this character board feels that prosp-

ective acceptors should have a clear understanding of this harding governor.
Stop

Upon receipt of this telegram we urged no public

statement be

made

Warburg advises board unanimous in feeling that some publicity must be
given to vievv, expressed therein



they are

probably willing to let us

as

TIE LEG

AmIlti

4111-

I
PITATO-R'S NOT Vie kIg

LC

a.
J

r',E: SENT, er.

IOW !)4

-

"S 04 imac
SAN FRAN

;4-4q tokti3.001.
7)

/

lP;14
GREATEgf TEL!G AP

"IRL.

A

TT:THE POSTAL:TELEGRAP lit CAB LE- cpivi.PA,N

r

Ci;

-1VTRDS fiF4THE INKY AROUND-1'4ft EARTH.

cf4044146,

TRANSMITS AND DELIVERS THE WITHIN TELEGRAM SUBJECT TO THE FOLLOWING TERMS AND CONDITIONSI
r
_ To guard agOdetwistapia der
r

Ilt/CL`' 4 4 .
::.

rgi9affiedilaTtrArglroTtheta; ittlfit
*

ts'Pali. alf414,14140W.
.
,.
eegiglif
5omparison. Fa
one-lalf the lin/TINS.
TELEGRAM AND l'Al .lo.11t AS SUCH-in consideration whereof it is agreed between the sender of the telegram and this Company as follows :
'. tab) for ohs hop or del'
in _the transmission ' 'liver or 'for nioiL;tilivery, of zli,V REP E A T4)tielegram, beyond the
The Corn
1.
c ..g.kgreoademmd );;,,
liallbv. ,
dek
. gyf
...our& 're.
a `.e :-,40,4 noe
. ta......
fifty t ' .,!.
A ..CED; noron any ase for delnigiays arising fronangt taWohlable iiitMti-ptioTriTthe
nng the same, NLESS
Work :
, IRS IN CIPHER OR OBSCURE TELEGRAMS.
,

iftillt

. D.Qta.

'elegta,n 'Vista .-.7
sent as a

enjAiralerirroitinliky, to 445144eleg.filt 71,-.

. rtokh I

mile to cover

I,

NO r6sP01

.etoishge lesEnt

nstructions rega
S. The Compa
,olegram is filed
,..11,5 abOde te

S. 'NO 'ENPI.0

,
.

.

ittiarrititcjit

4ersuo

lit-the eatablished free delivery kimiliof the terminal office. For delivery at a greater distance a special charge will be.

Messag

eflARLIE.

ioafbligof .0.a.nygges {.4,E,s74, julietakes or_ delap in the tra

3C. :114.4here y valued,.''''''n'Al.greliter value is stated in writffig, hereon at the tm the telegram IS offeredT the Company fol
o
ie
li+
nideo a 4t4"ft. 1".4'46, APO' l'ilomil'"11134141414111°14,Iiirezia
'ii paid or agreed to be paid based' on such value enual to one-tenth of one per cent. thereof.

ransinissk,
8.. The
4,

-

ADA

IiICE-PRES




FAS

..n. - .-.. t'"" ... i ' 'S

....

/

04:4

.

:IATS It

..'7

es attaches to this Company until the same are presented and accented at one of its transmitting offices; abd TT any
s Company's messengers, he acts as the agent of the -suder for the purpose of .delivering the message and any dottee m
..
...
,
agent Witesard-oRice. - " .
.
r damages or statutory penalties in any case where the claim is not presented in writing within sixty (tar: after ths
.

lesion.

.; :; 4

.

binding upon the receiver as well as the sender of this telegram.
IS AUTHORIZED TO VARY THE FOREGOING.

CLARENCE 14. MACKAY, PRESIDENT.
WARD REYNOLDS, VICE-PREST. AND GENERAL MANAGER.

CHARLES P. EHRLICH,
VICE-PRESIDENT

rrzRAPH SERVICE IN THE WORLD

.

POSTAI. TELEGRAPH - COMMERCIAL CABLES
IVED AT MAIN OFFICE
EST

CRAIYMER 11,1160010

020 ITTH STREET

NVER. COUV

TELEPHONE: 1.4111NI

TELEGRAM

DELIVERY No.

Ccmparryl Incorprptedgransmits and delivers this message subject to the termsend conditions printed on the back of this blank.
16D-29018

(4)

INMAN PATENT lMANI

make:itstenent instead of them. We have held matter off until tomorrow
morryiln 'top If you have further suggestions send us night letter.




?term Jay.

6pm.

OPEPATOR'S NOTATIONP,

IS SENT, Elf

TEL

ASNA

CNOLANIA
eiNG

CANA'D

vret

VAP.C.OUVIE

PACIFIC

OCEAN

JO; ty
RE44.!,10yoKoHANA
JAPAN,

SAN FRAM

Iraq.

MIDWAY

V

AT

OCEAN. vircafer

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

THE GREATEST TELEGRAPH AND CABLE SYSTEM IN THE WORLD.

COMPANY (INCORPORATED)
TO THE FOLLOWING TERMS AND CONDITIONSI
DELIVERS THE WITHIN TELEGRAM SUBJECT
for

THE POSTAL TELEGRAPH-CABLE
TRANSMITS A

back to the
ekes or delays, the sender of a telegram should order it REPEATED; that is, telegraphedface, THIS ISoriginating office
indicated on
AN UNREPEATED
If the unrepeated telegram rate is charged in addition. Unless otherwise telegram and Us Company as follows:
the,seader of the
this

To guar

tomparison.

AS SUCH, in consideration whereof it is agreed between

'emo

. ending the same, UNLESS SPECIALLY
`-`,:oltS IN CIPHER' OR OBSCURE TELEGRAMS.
non-delivery of this
:lot be liable for damages for any mistakes or delays in the transmission or delivery, or for the
rate, at which amount this telegram, If

If

-=or

ri,ince of tts ...mi.,. 0th

ft

'riles t

.

EATED

.,.

i r Kerlififile oormillrirSV. y A sNA .... sAA-,,,opy
...11/aldhl;:weirw
-Ode
w
or agreed to be paid base on such value equal to one-tent 6ftelegrame of any other Company when necessary
liner
1ent Or the sender, without liability, to forward this telegram over the

-legr

lit a?
-anarnissi

,

0

fo,._,

....

The C

refta

OaLV6401'404*-- iaL'ASre
lititir fr474r, tialocitn.-, II** Fqr tieLisiyat one of its transmitting offices: and if anynt hvaialiadati
unlill4tiamtare.pritsriAeclnre*accepted
2.4.2, IP

Misaaes
Ade to cover 1.1;
i,.

any UNREPEATED telegram, beyond the

telegram, beyond
liable for mistakes or delakii inititiristirjellvegylikg tit ealAgetrigaipt
ion or delivery, or.W1Mircielivery, of any REPEATED interruption in the
e ti
same; nor for mistakes Ile aye
VALUED; nor in any base for delays arising from unavoidable

rE L F.1G

8 to this Company
message. .and any noti,ot
..
.. c,e
s messengers, heac_tfts t p. agent of the sender for lb purpose of. i_elivering.the ....
..
said ofBce.
in writing within sixty days after the
statutory penalties In any case where the claim Is not presented

NO reepons:

_

wake-is sent to LIMb
structions regiirdin

The Company s

'egrain_is filed with th
7. rfhe above terms an

the receiver as well as the sender of this telegram.
ED TO VARY THE FOREGOIN.:(t.

k NO EMPLOYEE

ENCE H. MACKAY, PRESIDENT.
.

.

ADAMS;
/ICE-PRESIDENT.




FASTES

OLDS, SICE-PREST. AND GENERAL MANAGER.

CHARLES P. BRUCH,,
VICE-PRESISENT

LEGRAPH SERVICE IN THE WORLD

..

,.,

Misc. 34

P.VBAH
Post.1
6:30 p.m.

FEDERAL RESERVE BANK

' NEW YORK

(TO BEiED)
MA
,

CONFIRMATION OF TELEGRAM
We have today telegraphed you as follows :
Jenjamin 6trong

OctobBr

1910.

Lag.

4100 Idontview Boulevard
Denver, Colorado

-4

Vithout advising us Board sent following telegram today to all Federal reserve agents
Board is advised that an acceptance credit approximating one hundred million dollars
lrawn on American banks and trust companies is auout to be concluded on ninety day
'rafts subject to five renewals the accepting banks committAng themselves to advance
the money to the foreign borrowers at five and one half pereant per annum plus acoeptance
In view of widely circulated
3ommission of one fourth percent for each three months.
press statements that these acceptances will be eligible for rediscount or purdlase by
Federal reserve banks board deems it its duty to point out that banking prudence and
obligations toward general commercial interests of the country require that Federal
reserve banks should not acquire acceptances of thisycharacter beyond a conservative
.amount this view is consistent with the boards policy in the past and while it wishes

http://fraser.stlouisfed.org/
B-2
Federal Reserve Bank of St. Louis

FEDERAL RESERVE BANK
NEW YORK

(TO BE MAILED)

CONFIRMATION OF TELEGRAM
We have today telegraphed you as follows

2

market and to iurther the growth of our export trade and while it wishes to avoid any
attitude of interference with the powers of member banks in this respect board feels
nevertheless that it should be clearly understood that these acceptances which
represent obligati= for cash advances aggregating a very large amount by the
acceptors for eighteen months, cannot properly be regarded as paper &elf liquidating
within a period of ninety days if offered in excessive amounts
/federal reserve banks
may be obliged to discriminate against or to exclude entirely acceptances of this
character Board feels that prospective acceptors should have a clear understanding
of this,Stop Upon receipt of this telegram we urged no public statement be made
Warbarg ndvises Board unanimous in feeling that some publicity must be given to views
expresso. therein
They are probably willing to let Ire make statement instead of
them
Ve have held matter off until tomorrow morning
If you have further suggestions
send us/night letter

%VIA"

Chge. Fed. Res. Bk
http://fraser.stlouisfed.org/
20
Federal Reserve Bank of St. Louis

Pierre Jay

'""'")\'

FIM9117AL...TEL_EGRAPHCAOL-E

4-647

83 nl

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241am26

PC "ashington DC Oet 25 16

benj Strong

L4100

Monteview Blvd

4'enver Col

both

I spent tueeday washington on
message curtis and
should advise all participants
matter and arranged that Kent

Thanks

towards open market purchases generally
of attitude of reserve system
particularly and that harding should
and this class of

bills

deal with matter generally in
market in addressing institute

discussing acceptances and the discount
of banking in Newyork next

I wired you copy is
wednesday stop telegram of which
and we trust that telegraphic
causing much misunderstanding
instructions sent to



recipients will prevent
I Jay

publicity

eel

POSTAL TELEGRAPH-COMMERCIAL CABLES
LAsKA

PACIFIC

VANCOUVER

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ENGLAND

CANADA

NEWFOUNDLAND
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YOKOHAMA

MIDWAY

BERMUDA

ATLANTIC
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PANAMA

AFRICA
T. VINCENT

SOUTH

AMERICA

THE GREATEST TELEGRAPH AND CABLE SYSTEM IN THE WORLD.
.

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

THE POSTAL TELEGRAPH-eaLE COMPANY

(INCORPORATED)

TRANSMITS AND DELIVERS THE WITHIN NIGHT LETTERGRAM SUBJECT TO THE FOLLOWING TERMS AND .CONDITIONS:
The dempany will receive, not later than midnight, NIGHT LETTERGRAMS, wriften;intlaite English, to be transmitted 'Only fer delivery on the morning
of the ne4t. ensuing business day, at rates still lower than its standard night,message rate, ascs
GHT LETTERGRAM, containing fifty yvords or less, and
'TIM:Standard dey ;rate h. a ten-word day message shall be charged for,-the transibissit.
one-afth of the standard day rate for a ten-word day message slialLbe charged for-each additional en words or less in such NIGHT LETTERGRAM.

To guard against mistakes or delays, the sender of a message should order it REPEATIDD ; that is, telegraphed back to the originating °thee for
comparison. For this, one-half the unrepeated message rate is charged in addition. Unless otherwise indicated on its face, THIS IS AN UNREPEATED
of the.message and this Company as folios1.
MESSAGE AND PAID FOR AS SUCI I sir ooneidere,tion whereof ii is agreed between the
The Company shall not be liable for infshiges or delays in the transmission,. deliverY, Off fol,nomdelivery. of any UNREPEATED message, beyond the
arneunt received for sending the same: not for mistakes or delays in the transmission or detiveri, or for non-delivery, of any REPEATED message, beyond
fifty times the sum received for sending the same, UNLESS SPECIALLY VALUED; nor in any ease for delays arising from unavoidable interruption in the
working of its lines; Nutt FOR ERRORS IN CIPHER OR OBSCURE MESSAGES.
.2. In any vent use Company shall not be liable for damages for any mistakes or delays in the transmission or delivery, or for the non-delivery of this
message, whether caused by the negligence of its servants or otherwise, beyond fifty times the REPEATED message rate, at which amount this message, if
sent as a REPEATED message, is hereby valued, unless a greater value is stated in writing hereon at the time the message is offered to the Company for
tzar/mission, and an additional sum paid or agreed to be paid based on such value equal to one-tenth of one per cent. thereof.
I. The Company is hereby made the agent of the sender, without liability, to forward this message 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
4.
made to cover the cost of such delivery.
6. 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 ond.bf 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.
after the
This Company shall not be liable for damages or statutory penalties in any case where the claim is not presented in writing within thirty days
message is flied with the Company for transmission.
In further consideration of the reduced rate for this special "NIGHT LETTERGRAM" service, the following special terms are hereby agreed to:
(a) NIGHT LETTERGRAMS may at the option of the Telegraph Company be mailed at destination to the addressees and the Company shall bedeemed to
have discharged its obligation in such cases with respect to delivery by mailing such NIGHT LETTERGRAMS at destination, postage prepaid.
(5) NIGHT LETTERGRA.MS shall be written in plain English. Code language is not permitted.
The above terms and conditions shall be binding upon the receiver as well as the sender of this NIGHT LETTERGRAM.
NO EM,PLOYEE OF THIS COMPANY IS AUTHORIZED TO VARY THE FOREGOING.
B.

CLARENCE H. MACKAY:A:us...NT.
CHARLES

ADAMS.
-,SCE-PRESIDENT.

EDWARD REYNOLDS, yiGE-PREST. AND -GENERAL MANAGER.

CHARLES P. BRUCH,
VICE-RRESIDENT.

THE FASTEST TELEGRAPH SERVICE IN THE WORLD




OPERATOR'S NOTATIOW

TIME SENT, ET

FEDERAL RESERVE BANK

OF NEW YORK

October 30, 1916.

Dear Governor Strong:

I am in the office this morning for a couple of hours only before
going up to Utica to a dinner of Utica bankers gotten up for me by Mr.
Rogers of the First National Bank.

I shall not be back in the office un-

til Wednesday morning as I am not going to take the night train back but
shall take the day train, and incidentally hope to get those advertisements
put in final, form during the voyage.

I have read all of your flock of letters which arrived this morn,

ing except the personal longhand one, which I have looked into enough to see
what it contains and am keeping it for more thorough perusal on the train.
It arrived at a psychological moment when I have come to the conclusion and
have decided that I have got to have a competent assistant to take care of a
lot of my work.

Otherwise ; am going to get swamped with details and have

no time or energy left for the bigger things.

When I get home.I hope to write you a little about the history of
the last week which has been a series of misfortunes.

I think, however,

that in view of the fact that the telegram sent by the Board without my knowledge to the Federal reserve agents has practically killed the market for the
credit, the amount they are going to place is going to be relatively so small
that the Board is not going to make ther: send out any second notice explain-

ing the position of the Reserve System towards this kind of credit, but is
going to simply ignore the matter.

Er. Harding is going to speak here on

dnesday night before the American Institute of Banking, and in the course




FEDERAL RESERVE SANK OF NEW YORK

#2

Benjamin Strong,

10/3416.

Esq.,

of his address is going to discuss the development of acceptances and the
discount market, and will bring out in a most general way, I understand, the
views of the Board concerning the different classes of acceptances.

-Jaen I

left on Saturday noon that was the program, but the adoption of it was laid
over until this morning when Yr. Hamlin and Secretary McAdoo would be back,
and no One can tell what the outcome will be.
am afraid you have had a most unhappy week of it, and you may have
been even more unhappy than I because I felt that there was a good deal to be
said for the Board's point of view, although I did not believe in the least
in the way they went about it.

The telegram to the Reserve; agents did the

trick and I was not consulted about 'this, therefore I could/only appear as a

critic after the fact which is not a position from which one ever makes much
headway.

About the Aiken matter I am gailty.

7e have a committee on that

subject and I shall bring it before them on Wednesday.

I had expected to do

so two weeks ago but Woodward's absence made it impracticable.
I am having the data you wish for Pallain gotten together so that
Mr. Treman and I can cook up a letter to him on Wednesday.

The other mat-

ters contained in your various letters I am passing on to Mr. Treman and should
like to leave some of them for answer until I come back.
On the train going over to Washington last week I had

an

opportunity

for the first time to read your article enclosed with your letter of October
18th.

I am going to read it over again either going or coming from Utica.

Two things impressed me about it on the first reading:
pretty long;
to make.

first, that it is

second that you did not mace clear enough the points you wish

I think that this might be brought out by headings and by a new

statement either at the beginning or end of each of the halves stating what
you are going to show or what you have shown.



I will write you far

EDERAL RESERVE BANK OF NEW YORK

43

Benjamin S trong, Esq.,

10/30/16.

when I come back.

I understand that Mr. Curtis has written you a complete history,

undoubtedly in excellent style, about the whole week's work in regard to
the French credit, and I have no doubt that it was highly colored and I
sha'n't attempt to add anything dull gray when I come back.

Very truly yours,

--CCUuL

C
61-)-

/2L

Benjamin Strong, Esq.,
4100 Montview Boulevard,
Denver, Colorado.

PJ/RAH







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COPY OF HANDWRITTEN LETTER

49 East 64th Street
November 2d, 1916

My dear Gov.:

Your personal letter of 23d about my vicious character was received with
much appreciation by me, and with even more from my wife whom I didn't feel
I could deprive of the satisfaction I knew it would give her.
Of
are right, except that I don't admit that I am consciously reluctant to let
the other fellows come up from below."
I'm all for that policy and if I've
given any other impression its my unfortunate expression or actions.
The
only palliation I can offer is the shot-to-pieces condition of our force
during September and October. Most all of September, Kenzel and Treman and
Curtis were off, and all of October, Sailer and Hendricks and Cann; with
Jeff[erson] on jury duty.
There hasn't been much of a bunch to divid
Now we're all back, the day after election we're going to begin daily meetings
I again.
I feel that,like all other Reserve Agents I know of, I ought to have
1 a-ieal assistant of my own, $3,000-84,000 man, who will keep up all that work
of mine with the Board which it is unsatisfactory dividing around among two
or three Bank officers.
I've never had such an assistant yet, and if I can
find a good man, I intend to put it up to our Board hard. The matter comes up
automatically for Higgins can't be my assistant any more, being an officer of
the Bank. Last week, spent mostly in Washington on the French acceptance matter,
put me a bit behind, and I spent one-half of Monday and all Tuesday going to a
dinner of Utica bankers arranged by C. B. Rogers. Today, I showed W. W.
[Woodward] your letter about Aiken and told him I was in thorough sympathy with
the idea. It struck him very favorably. He said he'd discuss it with G. F. P.
[Peabody] and also just how they thought the matter should be approached with
Treman. I'll keep you advised, but fear we will make no progress this week as
G. F. P. is Wilsoning with a vengeance.
The news we hear of you and the rate at which you are "fleshing up" is
It looks to me as though you had the thing on the run if you will only
keep to orders. The day you come back will be a mighty happy one for me
as I don't need to tell you how much I miss you and our day-to-day association
with the inspiration and breadth of view and experience you brought to us.
I am keen to push things along -- big things, I mean, and I promise you to
reform promptly. Write me every time you see symptoms of a relapse and never have
any idea I shall take offense at anything you may write.

fine.




With best regards, in which Mrs. Jay joins and asks me also to thank you.
I PM

Yours,

FEDERAL RESERVE BANK
pC1

4_

CF

19/r-41.
November 4, 1916.

Dear Governor Strong:

I am taking advantage of a little cold to spend a Saturday morning
at home and answer another accumulation of letters from you.

Just as I

thought I had gotten up to date in my correspondence with you and in a number

of other thins along came this infernal French credit business which knocked
out a we6c of time and much more than a week of anxiety.

I believe that I

dictated to you a few lines about it on Monday and was glad to find that
Curtis had written you quite at length on Saturday the history of the week.
I must confess that I am somewhat in sympathy with the general point of view
of the Board as to not educating the banks of the country to go into the acceptance business on a somewhat false basis.

The rates which they have been

obtaining on these European credits for furnishing the funds, with the right
,-P,61.4AL

to sell their acceptances in the open market if they desired,Aled many of our
bankers away from the true view of the acceptance as a sale of credit rather
than a sale of itnds.

Many of them are not at all content with their 1% per

annum commission even on the ordinary liquidating transactions and do their

best to bargain with the people arranging for such credits on the basis of
making a flat rate for the advance.

Kenzel, as you know, gave a talk a week

ago on the subject of the discount market and spoke quite plainly on the subject of banks holding their own acceptances.

Klingsmdth of the Bank of New

York remonstrated with him beforehand on this, saying that it would be bad for
their business to give people the idea that the proper way to do the business
was for a commission instead of at a flat rate including the furnishing of the
funds.



Benjamin Strong, Esq.,

42
FEDERAL RESERVE BANK OF NEW YORK ..1(

11/4/ 16

I have strayed, however, Zrom the subject of last week in Washington.

While I am substantially in sympathy with the Board's point of view on the
development of acceptances through an overwhelming amount of these renewal

1

credits, I think the way they went at it was most unfortunate:-

The telegram

sent to the twelve Reserve agents, many of whom know little or nothing about
this kind of business had the result of practically killing the credit.

Chicago

and Minneapolis called their executive committees together and passed resolutions stating that these acceptances were not eligible and wrote us asking us
to buy no more of them.

If I had had any idea that they were going to shoot

in that sudden fashion I should, of course, have gone over to Washington on
Saturday afternoon.

I would have endeavored to word the telegram somewhat dif-

ferently so as to convey the same general idea but not to throw the Reserve
agents into a panic.

My conversations with Harding on the telephone Saturday

morning led me to believe that if I could not be over in Washington Monday,
Thursday would do just as well.

Evidently the Comptroller got very excited

on Monday morning and if they had not sent their telegrams he would have issued
a statement that national banks had no right to make such an agreement.

you see, there were many cross currents to the matter.

So,

The final upshot of

it was that the Board, understanding that there would not be more than ..25,000,46)0
of drafts drawn on member banks under the credit said that they would not feel
it necessary to take any further action in the matter beyond having Mr. Harding

give their views generally in his speech in New York on Wednesday night.

The

Board did, however, send out a letter to the Reserve agents on Tuesday of this

week, copy of which I sent you together with my acknowledgment and a letter
which I wrote to all of the Reserve agents, giving their views on rates.

Our

feeling was that if we did not advise them promptly about our views on rates
they might write in to us that they would not buy these acceptances except at

a differential, which with our bank buying them at the same rate as other ac ceptances


would create a difficult situation and entail a reversal of the po-

Benjamin Strong, Esç.,

FEDERAL RESERVE BANK OF NEW YORK ...#3

11/4/16.

sition of out of town Reserve banks, just as in the case of their instructions to us not to purchase any so-called renewal acceptances.
..

I thought a copy of Ir. Harding's speech had been sent to you, but
Miss Holmes says not and I are asking her to find one this morning- and mail
it to you;

if not I will try to get you one on Monday or Wednesday.

Treman and I went to hear him deliver it.

Er.

The part about acceptances was

drafted by Mr. Warburg as one can easily see from the style,although it may
have been dressed up and changed somewhat by Mr. Harding.

The reason I did not want to be in Washington on Monday a week ago
was that the committee of the New York State Bankers Association on the nomination of candidates for directors was going to m-et in New York that day
a final decision, and I wanted to be on hand to assist it and to prepare
/

the circular.

ifor
ter
i

I had, as you know, taken a good deal of interest in the mat-

and did not feel that it could be delegated to anyone else, with Which

stiplose you will disagree.

I

On the whole I felt very well satisfied with the

results and shall be glad to hear the way it struck you.

It seems to us

1

that we have made a start in creating a permanent machinery- to take care of

this subject, which I have no doubt will to some extent be copied in other
districts.

From the way the nominations are coming in there seems no doubt

that Mr. Woodward and Mr. Towne will be elected.

Mr. Locke, thanks to your persuasiveness, did not present his motion
at

our meeting Wednesday limiting our dealings in acceptances.

In fact, the

matter was not brought up at all.
On Monday noon of this week I went up to Utica to meet at dinner some
of the Utica and neighboring bankers at the invitation of Mr. Rogers of the
First National.

It was a small dinner, only about a dozen, and we sat around

the table discussing the system informally for about three hours.

I thought

that it was a profitable evening and wish we could have more of these conferences




FEDERAL RESERVE BANK OF NEW YORK

Benjamin S trong, Esq.,

11/4/16.

-3

if they did not take us away so much from the office.

One of those present

was Mr. :j_ller, cashier of one of the national banks in Little Falls.

After

the dinner he told me that he felt he was there under rather false pretenses

as they had just decided to convert into a trust company, not because of dissatisfaction with the Reserve system but because they felt sooner or later a
trust company would be established there and they wanted to forestall it.

I

spent the night with Mr. Rogers, and having two or three hours to spare the

next morning before my train left, I went over to Little F ails which was on
way home and met the eFecutive committee of this bank.and put up to them
as
Ithe hard

as I could the suggestion that they should convert into a trust company

and remain in the Federal reserve system.

They had a very intelligent commit-

tee and I think that the call was not at all wasted.

Mr. Miller spent about

three hours in our office yesterday with Mr. Higgins and me and I have hopes
that they will really give the matter serious consideration.

Fortunately Mr.

C. A. Miller of Utica, a brother of the cashier, is on their committee.

He is

a most intelligent fellow - probably you know him.

Yesterday we got hold of Thralls for lunch and had a long talk with
him about the work of the committee of five appointed at the Kansas City Conq vention to get an amendment by Congress to the clearing plan.
that the bankers are so rampageous that some concession has got to be made to
keep them in line.

He tells at some length of his experience at the St. Louis

meeting of country bankers and at the Kansas City meeting also.

I guess from

what he says he has been an influence for moderate action as against extremists
like Lyford.

'Through him we shall be able to keep in touch with the work of

the committee.

To return to your letters;

the letter of October 23rd covering

twelve different aspects of our work and problems we are going to take up at

our morning meetings which we are to begin again on Wednesday, the day after



FEDERAL RESERVE DANK OF NEW YORK

Benjamin Strong, Esq.,

45

11/4/16.

Election, they having rather lapsed during the vacation season of the past
two months.
1.

Taking them in order:

I understand that you are working on

The Currency Problem:

the theoretical side of this and some time during the next month I want to call
i

a meeting of a committee of the Reserve agents appointed to study this ques-

I
i
1

tion.

If you can give me any suggestions we shall be very grateful.

The

I

IReserve

agents, by the way, meet on December 4th and the Governors, I understand

on December 11th.

We are issuing Federal reserve notes freely and in accordance

with your suggestion the junior officers will be asked to make a study of simplifying methods.

Mr. Treman and I have been considering the advisability of en-

deavoring to get some of the larger country banks in places like Utica, Syracuse,
Elmira, etc., to cull out their gold 10's and 20's and ship them down to us at
our expense, we shipping them in turn at our expense Federal reserve notes.

It

as though this would add about 20% to 30% over the cost of issuing such
-

notes to our city member banks and redeeming them,.etc.

\looks

this would be a justifiable expense
.

\

Personally I think the.

for example, if we should get in 0_0,000,000.

of gold in this way, which we might in the course of several months, the cost to

us would be somewhere between3,000. and :3,500.
get your view on this matter.
a
r'ith

doing

-

I should like very much to

My thought is that we should simply take it up

few of the larger banks which we happen to know.

Mr. Treman has been

it for some months in his own bank and finds there is quite a steady stream

of gold flawing towards us in this way.
Comptroller's Reports:
ine copies of all examiners' reports.

We are now receiving as a matter oftoutThere is, however, as you know, a page

which they do not send us and Er. Cann is making a study of what we are failing
to get 7:ith a view to making further representations if it develops that we are

not getting some matters of importance.




Fiscal Agency Matters:

I think this matter is being taken up

AsA

Benjamin Strong, Esq.,

FEDERAL RESERVE BANK OF NEW YORK .a-

11/4/16.

by a committee of the Governors.
New York Clearing House Relations;

Your suggestion for a rega-

lar meeting between the clearing house committee and our representative is an
excellent one and I think we ought to take it right up.

We have taken up with

Mr. McGarrah the question of putting our two day points on their discretionary
list just as is done under the clearing house collection system and the committee

has it now under consideration. The matter of settling balances we have not taken
up since you went away.

Please let me know if you talked this over with Mr.

Vander lip.

The Transit Plan;

_Next week we are going to start our campaign

to deal with state banks and hope gradually to make important headway.

The Board is suggesting a plan of having a legal and silver pool similar to the gold pool, and has worked out some kind of a tentative plan on the
basis of participation therein on the basis of resources.

For instance;

would have about 40% of it and the other banks proportionately.

we

It does not

really meet our situation here as we ought not to have any participation in it
and ought to hold it for other banks who fill us up with this

kind

of money.

The real remedy, it seems to me, is for the clearing house to go on a gold pasis
If necessary an amendment should be pro-

by an understanding among the members.
cured permitting this.

IT New York is to be the settling center of the nation

and an international settling center as well the settlements ought to be always
in gold, it seems to me.

I should like to know your view on this point, which

I think I suggested in a previous letter.

We are constantly trying to impede

trading in New York exchange in other parts of the country on account of the embarrassment it causes us in New York.

Do you know if London has ever tried to

impede trading in sterling exchange in other centers?

The more I think of it

the more clear it seems to me that we have got to be ready to settle all and

every kind of transaction in New York, no matter how extensive the dealings in




FEDERAL RESERVE BANK OF NEW YORK

Benjamin Strong, Esq.,

.47

11/4/ 16

.

New York exchange may have been in other parts of the country, and that the
impediment of having a lot of silvers and legals in the clearing house is a
real menace to the continuation of New York as the settling center, therefore
the place whereEveryone.will want to have an account

The telegraphic and mail transfer matter ought to be tackled by a
committee of Governors, it seems to me.

As I have written you before, Curtis and

JA)reign Arrangementss

I are both satisfied that nothing can be done about foreign arrangements until

after election, and we inquired particularly as to whether we are losing any
We have been advised both by Mr.

position by no1/ pushing the matter now.
<),,,

Delany'and Mr. Harding that they believed this was not the case.

Rest assured

that we shall take this matter up vigorously soon after election.
Gold Bars and Foreign Coin:

T hat is a matter which we ought

.

to study now that we are in possession of cl.uite a lot of gold bars.

Domestic Acceptances;

Would you think it advisable for us to

get out a special circular on this descriptive of haw to do it, etc.?
Uniformity in the System:
tors would be excellent.
//

I think another conference of audi-

I was looking over the November bulletin yesterday

and was rather appalled at the endless mass of statistics it contains.
Office Organization:

This is a matter Mr.

Treman and I intend

bring up to the junior officers on Wednesday for their immediate attention.

Having
(to

got our transit department on to a basis where it can strike a balance

and where the women understand something about an adding machine and a check I
think we shauld now begin to study methods of reducing the cost of handling; in

general an analysis of our office organization and its work with a view to reducing expenses.

We now have 173 employees which is a pretty big force.

Investment Apportionments
ing this.



Er. Curtis and Mr. Treman are study-

ERAL RESERVE SANK OF NEW YORK

12.

Annual

#8

eport:

Benjamin Strong, Esq.,

11/4/16.

Mr. Cann began work on this about a month

ago and has already made considerable progress on the routine work.
You have indicated in this letter as well as in some others that
there are two or three matters you are anxious to hear from me about.

I wish

you would let me know just what these matters are.

rlyi

1.40

Replying to yours of October 24th asking me to make a change in your

article, I will have this change made as you request on page 6.

On the train

to Utica I had an opportunity to read the article over carefully again and got
a much better impression of it than I had on the first reading.

On the whole

I believe that I had.elaenenclose it to you with a number of notes that I have
made on it, not worth much to be sure, but perhaps they may carry some suggestions to you.

If you feel like looking them over and sending it back to me

either in its original form or with some changes, I will at once take the matter up with the "Times" and if it is not accepted there, with the "Post."

I

feel that sub-headings are important to indicatethe points you wish to make and
I should think that a short explanatory paragraph either at the beginning or
ending of each of the two parts, preferably the beginning, stating why you write
the articles and what they are intended to show would be very helpful and give
not only a raison d!etre but an understanding of what the argument is directed
to and would add very much to the effectiveness of the articles.

I have not

reproached myself for not taking the matter up before with the "Times" because
just at present everybody is so absorbed in the election and the papers are so
full of it that I did not feel it was a particularly opportune time.

Just as

soon, however, as the election is over I will go to it.
You

letter of October 24th about the French credit really needs no

answer now.

Replying to your letter of October 24th answering my long letter of
the 19th, I note what you say with regard to Curtis seeing Polk prior to a de-




FEDERAL RESERVE BANK OF NEW YORK

cision.

#9

Benjamin Strong, Esq.,

11/4/16.

We have talked that over two or three times with Mr. Delano and he

has assured us that an opportunity mould be given.

I see that you refer in

this letter to a matter I have spoken of above about New York clearing house
settlements.

Of course, if we can get the silvers and legals all out into

circulation that would cure the situation.

My impression was that the Sailer salary matter became effective on
January 1st, but Mr. Curtis is now looking it up.
Replying to another letter of October 24th about the gold which is
arriving;

as I have said it is all in bars and I will ask Mr. Sailer and his

associates to study the question you bring up about our possibly retaining it
in bar shape.

The vault situation under the study and pressure of Mr. Horowitz seems
to improve.

The York people are now promising it by New Year's although I have

no great faith that this will be done.

However, it probabl:- will not be as mudh

delayed as they anticipated at first.

I find among my batch of letters of yours to answer your letter of
October 20th to Mr. Treman enclosing copy of letter from Mr. Cokayne and referring to your reply, which letter owing to absence, I had not seen.

I will pur-

sue the matter on Monday.

Mr. De Neuflize has been in to see me once or twice of late and I find
him sitting at Kenzel's desk every other day.

He is trying to develop a re-

volving credit here of ninety day drafts which will not have the renewal feature.
objected to, but as yet meets with but little encouragement.

He has suggested

to me again that as the Bank of France has considerable. funds here from time to

time and as it would much rather draw checks on the Federal Reserve Bank of New
York than on some of the national and state banks, we should consider the question of our appointing them our correspondent in Paris, making a more or less

nominal deposit with them and then receiving a deposit account from them, which




FEDERAL RESERVE SANK OF NEW YORK

,

#10

Benjamin Strong, Esq.,

he says, he is prepared to open any day.

I told him that

11/4/16.

I thought this was

a matter we could not consider altogether apart from the larger question of
neutrality, etc., but that I would write you and get your views upon it.

His

suggestion was that we might make this an inactive connection at once and leave
for the future the question of buying bills, etc.
I am now reading your letter to Mr. Pallain and note that you say that
his

20,000,000. suggestion is waiting consideration by "some of your associates

in Washington."

As a matter of fact this letter has not been submitted to the

Board although Delanp was in the office the day you sent it to us and I took the
liberty of showing it to him confidentially.
over with Warburg when he was in Colorado.

Possibly, howe

It sounds to m

letter, but I understand that Curtis has discovered one or two suggested changes
and that in the meantime Treman has written Mr. Pallain and sent him the books

and data your letter suggested, adtising him that you would write him in a few
days.

I have not yet heard from Curtis what his criticisms of your letter are.

I hope to go over this with him on Monday.
I note among the papers I have before me copy of your letter to Mr.

Miller on the subject of his Indianapolis speech, but as I have not read that
speech I am going to postpone reading your criticism until I can do so.
In the meantime as'I feel I have already dictated enough to keep Miss

Holmes busy for some part at least of a pleasant Saturday afternoon I had better
call this a day's work and put over further correspondence until :Ionday or possibly Wednesday.

With best regards, I am,
Faithfully yours,

P. S.

I note in one of your letters a suggestion that I should run

out and see you some time or other.



I should like to do that tremendously but

FEDERAL RESERVE BANK OF NEW YORK

Benjamin Strong, Esq.,

11

11/4/16.

should say that it would not be practicable before the first of the year unless
something urgent comes up.

There are so many things of importance to do in

the office, as you well intimate in your letters, to say nothing of a coming
conference of Reserve agents and an annual report to be worked out, that I guess
I shall have to stick pretty closely to work for the next two months with an occasional football game for diversion.
It will be a great relief to have the election tension over.

Benjamin Strong, Esq.,
4100 Montview Boulevard,
Denver, Col.
PJ/ RAH




FEDERA RESERVE BANK

0

Mt YORK

November 6, 1916.

Dear Governor Strong:

I have yours of November lstireferring to Mr. Hoffman's change
to the "Times," and just as soon as I receive back the article from you
I will take it up with him.

I had in mind speaking to him about it as

he has asked me for a copy, but felt that I should like to refer it to
you first.

Your analysis of the Washington situation is quite correct.,
Just as soon as possible after Election Day I trust we can arrange to have Mr. Curtis begin to take up the foreign matter at the State
Department.

Mr. Hendricks is having to go up to Albany this afternoon on
another sad errand.

It appears that Mrs. Eltinge, wife of the surgeon

who operated on his boy,died yesterday evening of cancer and he naturally
wants to be with him for the funeral and for a day or two after.

I understand froma letter from Warburg that he will be in the
office to-day.

I suppose they are all scattering in order to vote.
Sincerely yours,

(7/Lay-LQ
F. S. Mr. Warburg has been .spending an hour or so with us and

we have been discussing with him one or two matters in connection with the
acceptance situation.

He is rather anxious that we should now establish

a slight differential, say

1/8

or 1/4 on the-purchase of acceptances drawn

under the so-called renewal credits.



I explained that our board, felt that

FEDERAL RESERVE BANK OF NEW YORK

-

Benjamin Strong, ESq.,

11/6/16.

at the present time the volume in which they were being offered was. not
excessive and that they were selling on the same basis as other acceptances
of similar institutions.

He said that he thought that our rates were

meant to indicate a discrimination, and inasmuch as the Board had offici-

ally taken the position that these acceptances were not to be looked on
with the same favor as the usual liquidating credits it would be appropriate for us to make such a distinction.

He said that he felt as though

for us to continue to buy them on an even basis with other acceptances of
similar institutions after the Board had officially taken a position on
the matter would tend to make their position as rather one of words without
I suggested that some time later when these acceptances appeared

deeds.

to be offered in larger volume would be an appropriate time for us to make
this differential, but I felt that to do so now would be like adding another
crack

at

this form of acceptance which had already been pretty badly hit.
I should like very much to get your point of view on this matter.

Benjamin Strong, Esq.,
4100 Montview Boulevard,
Denver, Colorado.

PJ/RAH







FEDERAL RESERVE BANK
OF NEW YORK

J 191d

November 11, 1916.

Dear Governor Strong:

Many thanks for your letter of November 7th about
Mr. Malburn.

I have a very high opinion of him but fear

that we could not afford him in the office.

He Would cer-

tainly expect more than five thousand dollars to come to
live in New York.

I should think, however, that one of

the New York banks might like to get hold of him, and believe
I shall suggest his name to Yr. Alexander and perhaps one or
two others.

I only wish he could be appointed Federal reserve
agent in Chicago, but unfortunately he has not resided there
for two years.

I understand that Bosworth does not wish re-

appointment at the expiration of his term on December 31st.
If yo a think of any good man for the job out there drop me a
line.

I am very anxious to get a high grade man in there.

Bosworth is a nice fellow and all right in many ways but I
feel as though a more progressive person might be appointed
there and I know that the Board is now engaged in looking
around.

Sincerely yours,

Benjamin Strong, Esq.,
4100 Lontview Boulevard,
Denver, Col.
PJ/RAH

TVOLC_
9C1r120 )TJ1

FEDERAL RESERVE BANK

OF NEW YORK
/fre

de4Or
;Cf

A:vember

I:

11, 1916.

4°'

(11,9

Dear Governor Strong:

I have your letter of the 7th and am extremely glad to learn
that you do not cling too tenaciously to the view expressed in a previous
letter that I did not need any assistant.

It would make me unhappy to

feel that I had to go against your views in this matter, but I am convinced I am right.

The thing I am most of all interested in is pushing and developing the work of the bank.

My inclination is to devote all my time to

that, but the fact is that I have enlisted for a different kind of a job,
and one for which I am really not fitted, I fear.

Looking back now I

feel as though it might have been better if I had held some position in
the organization of the bank in which they'had appointed some little dynamo like Fisher as reserve agent.

He would have written the Board letters

of information not daily but hourly.

The fact is I have let that end of

my work slide most disgracefully during these two years.

I am determined

that I must now make a real effort to develop something out of that side of
my job.

To do this I feel the need of a competent assistant whose work

as assistant to me will not be secondary and a side issue but will be h's
main and practically sole raison d'etre.
way can I get reaults.

I am satisfied that only in this

There is no reason that others in the bank should

not from time to time do those things for me for which they are particularly
fitted, just as they have been doing in the past, but the trouble in the
past has been that there has been nobody but myself to .originate and develop




FEDERAL RESERVE BANK

OF NEW YORK
AP

149
A5Vember 11, 1916.
.
-

078

Dear Governor Strong:

I have your letter of the 7th and am extremely glad

-6

learn

that you do not cling too tenaciously to the view expressed in a previous
that I did not need any assistant.

It would make me unhappy to

feel that I had to go against your views in this matter, but I am con-

Iletter
vinced

I am right.

The thing I am most of all interested in is imshing and developing the work of the bank.

Ly inclination is to devote all my time to

that, but the fact is that I have enlisted for a different kind of a job,
and one for which I am really not fitted, I fear.

Looking

back now I

feel as though it might have been better if I had held some position in
the organization of the bank in which they had appointed some little dynamo like Fisher as reserve agent.

He would have written the Board letters

of information not daily but hourly.

The fact is I have let that end of

my work slide most disgracefully during these two years.

I am determined

that I must now make a real effort to develop something out of that side of
my job.

To do this I feel the need of a competent assistant whose work

as assistant to me will not be seconary and a side issue but will be
main and practically sole raison d'etre.
way can I get results.

I am satisfied, that only in this

There is no reason that others in the bank should

not from time to time do those things for me for which they are particularly
fitted, just as they have been doing in the past, but the trouble in the
past has been that there has been nobody but myself to originate and develop




FEDERAL RESERVE BANK OF NEW YORK

Benjamin Strong, Esq.,

#2

11/11/16.

the work and I have simply let it slide because I have been too much interested in other things.

What

I want is a man who will be keen to

develop the work along rational lines, and will be constantly planning it

and bringing his plans up to me for approval or disapproval, as you well
understand that what is everybody's business is nobody's business.

Con-

versely I have seen so many cases in which the appointment of a man at a
moderate salary to do a particular job or forced to a particular point of
view has brought such striking results that I am must anxious to get at it
in my department.

If there were anyone in the force who was particularly

fitted for the work I have in mind I should be only too anxious to appoint
him, but I do not believe there is.
Your doctor is wise in not making you too definite promises about
coming back to live in the East.

Anxious as we are that you should be back

with us at the earliest moment I am personally (Ante glad not to see you back
until a year from now, and if the doctor were to hold out promises of a possible return in the spring which later should not materialize I think the
psychological effect on you would be bad.

Even when you do get back I am

fully expecting that you will have to be very careful of yourself, your ten-

dency being to overdo, and you will have to feel free to take vacations and
rests and the like in a most regardless fashion.

But as to your coming

back and joining us again I will say that everyone of us has the most abiding conviction that you will pull it off, and it will be a great day for us
when you hit the town again.
I have been trying life in bed for the last few days and find it

a most boresome ocupation, especially since the particular disease, laryngitis, practically prevents my doing much talking and my dictation is in a
kind of a hoarse whisper.

Otherwise, I should not have objected particu-

larly as I have two or three rather long matters that I should like to get



FEDERAL RESERVE BANK OF NEW YORK

11/11/16.

Benjamin Strong, Es.,

#3

I fully expect to be back in the office on

a quiet time to dictate.

Monday after being away with the exception of last Monday, which I guess
was a mistake, for over a week.
On Friday, the 17th, I am going to meet in Washington with Mr.
Hardy and Mr. Austin.

We were appointed at the last agent's conference

a committee to make a study of the currency question, and I hope that we
can marshal. together some of the many various suggestions that have been
made, looking toward the improvement of our currency system into a report

which, if lacking in originality and somewhat superficial, would at least
give

evidence to the governors that our conference is ready to show its

good faith and tackle that important question which the governors have referred to it.

After we have sat down and gotten our ideas a little togeth-

er I will write you our views and should like very much to get your comments
and assistance.

With best regards, I am,
Faithfully yours,

--PEVt_Yu

Benjamin Strong, Esq.,
4100 Montview Boulevard,
Denver, Colorado.

PJ/RAH




9-Ct/Nd---

I/

FEDERAL RESERVE BANK
OF NEW YORK
;(4tNovember 13, 1916.

Dear Governor Strong:

Many thanks for your nice long letter of the 9th covering a multitude of sins.

I expected to be down to the office again to-day but find

myself still in bed, I am afraid with the prospect of a few more days of it.
I an getting mighty tired of it, especially because I seem to be shut up by
such a trivial thing.

I am told to talk as little as possible so I cannot

even dictate freely as I should like to do, but I can tell you it makes me

-

sympathize most heartily with the feeling you have so often expressed recently of itching to be back at work when there is so much of importance to be
done.

I agree with you about Thralls' position.
ment is over.

The psychological mo-

From what he tells me he helped considerably in putting it

over, although T. am not quite sure whether he always appraises himself

His idea is that some compromise will

exactly correctly in these matters.
have to be made to satisfy them.

I believe that if any it should be along

the line of a reduction of their reserves and not any compromise along the
line of permitting a moderate exchange charge.

How do you feel about this?

You will have received a copy of a letter which Yr. 'darburg wrote
me on the subject of dollar exchange.

It was the result of a discussion

we had on the subject in the office on November 6th during the course of
which aurtis,I am afraid rather unwisely, showed Warburg your letter in
which you rather slammed the Board for its view.

I think that Mr. Warburg's

letter settles the matter conclusively as far as the present legislation




FEDERAL RESERVE BANK OF NEW YORK

#2

Benjamin Strong, Eq.,

goes and it would be wise not to agitate it further.
Very truly yours,

Benjamin Strong, Esq.,
4100 lontview Boulevard,
Denver, Colorado.
PJ/ RAH




11j13/16.

FEDERAL RESERVE BANK

OF NEW YORK
November 18, 1916.

916fee
Dear Mr. Strong:
I have your letter of N:olen

your article.

44ta

.ge

1Of
A

.

Lth about Mr. Miller's position and

Of course, the Board is very much divided on letting the gold

held by Reserve agents count as part of our reserves, although they recommended
it unanimously to Congress in their report.
strongly.
)

Hamlin and Warburg favor it

I do not know what Harding's position is.

pose it strongly.

Miller and Delano op-

I think it was a great mistake to put it out in the brief

0

way in which they did in their report without sufficient argument or explanation.

It is a matter on which there will have to be a great deal of education

done among bankers and others before their support can be obtained.

On its

face it sounds bad, like an atter4t at eating your cake and having it too, but
when you analyze it the logic is just as plain as a pike staff.

The fact that

Miller did not discuss this feature of it in his address out of deference to
Mr. Warburg's position should not necessarily have any bearing on your discussing it.

You are not a member of the Reserve Board, and if we are all to shut

up like clams because Miller and Warburg do not agree we would not get anywhere.

As a matter of fact Miller was one of the fiercest antagonists of our exchanging Federal reserve notes for gold.
to it enthusiastically.

After a couple of years he has 'come around

I have no doubt that he will come around' to the other

more important measure in time.
It seems to me that the article is intunded primarily to answer the
Chronicle's criticisms than to express your min views.
entirely proper and think you need not hesitate to go ahead.




As such I thin
It might be po-

FEDERAL RESERVE BANK OF NEW YORK

"112

Benjamin Strong, Esq.,

lite, however, to advise Dr. Liller of the

situation.

Very truly yours,

Chairman.

Benjamin Strong, Esq.,
4100 likintview Boulevard,

Denver, Colorado.




11/ 18116 .

FEDERAL RESERVE BANK OF NEW YORK

42

Benjamin Strong, 1-;Sq.,

lite, however, to advise Dr. Lillpr of the situation.
Very truly yours,

rP,,,

9

Chairman.

Benjamin Strong, Esq.,
4100 Ebntview Boulevard,
Denver, Colorado.
PJ/filiAH




11/16/16.




WESTE

UNION

CLA-3b

Gay Mess.

Day Letter
Night Message

.me symbols
se of
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s) this is a day messy

its character is Indic

ot appearing after the

nu

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Night Letter
NL
If none of these three symbols
appears after the check (number of

NEWCOMB CARLTON, PRESIDENT
BELVIDERE BROOKS, VICE,
GEORGE W. E. ATKINS, VICE-PRESIDENT

words) this is a day message. Otherwise its character is indicated by the

SIDENT

symbol appearing after the check.

,4,i-iJ Finalitt

_N138 NY CM

47 N L

CO NEWYORK NY NOV 27 1916

11/ ENJ STRONG

1430
4100 MONTVIEW BLVD DENVER COLO

SHOULD APPRECIATE YOUR WRITING ME BRIEFLY YOUR EXPERIENCES
iiREFERRED TO IN YOUR ARTICLE IN TRYING TO EXCHANGE SILVERS AND

FEGAL

FOR GOLD AT SUBTREASURY STOP SHOULD LIKE TO REFER TO THEM

IN IMPERSONAL AND APPROPRIATE WAY IN REPORT

RESERVE AGENTS CONFERENCE NEXT MONDAY
PIERRE JAY

-""'"*11 08PM

I

AM WRITING FOR

FEDERAL RESERVE BANK
OF NEW YORK

December 1, 1916.

Dear Governor Strong:

I am mighty glad to learn from your letter of November 25th
that the latest reports from Dr. Sewall are most favorable.
was the only one that pulled off a football game.

Curtis

After two weeks of

confinement the doctor let me go down to the office on Monday, November
20th.

I felt first rate but agreed with Dr. Treman in his recommenda-

tion that I should go home for lunch, which I did, and late in the af-

ternoon I came down with a pretty heavy fever and got hold of a new
doctor who said I had had a re-infection and has kept me in the house
almost continuously since then and in bed most of the time.

What I

have had is not laryngitis but a pretty severe attack of bronchitis, or
rather two attacks.

I have managed in all to spend over half a month

in bed, which breaks all my records so completely that the rest are nowhere.

I am feeling fine again now, and the doctor thinks I can go out

a bit to-morrow and take the train for Washington on Sunday to attend
the Reserve agent's conference, provided Mrs. Jay

will

go with me as

trainer with full power.

I have been trying from time to time to write up something in
the way of a report on currency matters embodying other peoplds ideas,
but it does not make much progress.
I remember a letter I received from you during the past month,
which I have not here this moment, in which you spoke about the division
of topics between the governors and the Reserve agents, and lamented that
nothing had been done.




The four topics are (1) Issue and redemption of

FEDERAL RESERVE BANK
OF NEW YORK

December 1, 1916.
`41

Dear Governor Strong:

I am mighty glad to learn from your letter of November 25th
that the latest reports from Dr. Sewall are most favorable.
was the only one that pulled off a football game.

Curtis

After two weeks of

confinement the doctor let me go dawn to the office on Monday, November
20th.

I felt first rate but agreed with Dr. Treman in his recommenda-

tion that I should go home for lunch, which I did, and late in the afternoon I came down with a pretty heavy fever and got hold of a new
doctor who said I had had a re-infection and has kept me in the house
almost continuously since then and in bed most of the time.

What I

have had is not laryngitis but a pretty severe attack of bronchitis, or
rather two attacks.

I have managed in all to spend over half a month

in bed, which breaks all my records so completely that the rest are nowhere.

I am feeling fine again now, and the doctor thinks I can go out

a bit to-morrow and take the train for Washington on Sunday to attend
the Reserve agent's conference, provided Mrs. Jay will go with me as
trainer with full power.

I have been trying from time to time to write up something in
the way of a report on currency matters embodying other peoples ideas,
but it does not make much progress.
I remember a letter I received from you during the past month,
which I have not here this moment, in which you spoke about the division
of topics between the governors and the Reserve agents, and lamented that
nothing had been done.




The four topics are (1) Issue and redemption of

currency;

(2) Relations with member banks;

(4) Relations with the public.

(3) Relations with state banks;

These formed the major part of our programme

last May and a standing committee was appointed, consisting of Messrs. Hardy,
Austin and myself, to make a study of the whole currency question and report
from time to time.

Unfortunately my long vacation and then absorption over

the Clayton Act and French credit matter, and now my month of confinement to

the house have militated against our getting up a really good report for this
conference, but I do not want you to feel that these topics are being neglected
by the Reserve agents as a body.

In fact the programme for our coming meet-

ing is composed almost entirely of these four topics, plus a discussion of
general Federal reserve bank policies.
We hope to get the Board to express itself as to what its policies

are on some of the more important lines, and have reserved an afternoon for
that purpose.

I have felt some little satisfaction in being at home during the
last few days instead of at the office, where I am sure I should have been

It

asked frequently to express my views on the Board's pronouncement about foreign

Ac"

loans, which would certainly have been embarrassing to me.

I understand from

Curtis that not even Thanksgiving Day had enabled you to regain your composure
on the subject.

I have tried to view the matter dispassionately and feel

that if they felt it necessary to say something about the relation of foreign
loans to the banking situation they should have done so, and I do not object
to the form of a public statement, but I think they were all wrong in saying
anything about investors, and the general language of the statement did not
impress me at all favorably.

I think that with the situation in this coun-

try, where we are entirely new at international banking and where it is coming at us so thick and fast we cannot proceed entirely along lines which will




FEDERAL RESERVE BANK OF NEW YORK

#3

Benjamin Strong, Esq.,

12/ 1/

16.

--c,

be followed in England or other foreign countries, our banks need a little
guidance and the Federal Reserve Board is the natural body to express it.
'Warburg sent me a copy of his letter to you on the subject, written about ten days ago, and the connection between this and the statement
is obvious.

It seems to me strange that they should not have consulted us

before issuing such a statement.

I believe we could have put it in a good

deal better shape.

With best regards, I am,
Faithfully yours,

9AaA4F)-1

Benjamin Strong, Esq.,
4100 Montview Boulevard,
Denver, Colorado.
PJ/RAII




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NEWCOMB CARLToN, PRESIDENT
GEORGE W. E. ATKINS, VICE-PRESIDENT
BELVIDERE BROOKS, VICE-PRESIDENT

symbol appearing after the check.

'\rox ggin 191ki
BN NEWYORK NY j35P DEC 1

BENW

1916

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4100 MONTVIEW BLVD

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OFFICE SOMEWHAT AFTER

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PIERRE JAY
240PM

49 EAST SIXTY-FOURTH STREET

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17,4 STREET

'ER. COLO.

IONE: MAIN 4800

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CCiMMERCIAL CABLES
PRE ,10,ry,

TELEGRAM 3f2-'
DELIVERY NO.

The os al Telegraph-Cable Company( Incorporated)transmits and delivers this message subject to theerms and conditions printed on the back of this bl,n1,.
160-29018

DESIfill PATENT IlApla

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state department writing




P Jay

OPERATOR'S NOTATIONS,
TIME SENT, ETC.
ENGLAND
NEWFOUNDLAND

VANCOUVER

PACIFIC

OCEAN

BAN FRAN

MA

'055

MIDWAY

BERMUDA

ATLANTIC
OCEAN

HONOLULU

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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
1. 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 for sending the same, UNLESS SPECIALLY VALUED; nor in any ease for delays arising from unavoidable interTuPthau in the
working of its lines; NOR FOR ERRORS IN. CIPHER OR OBSCURE TELEGRAMS.
S.
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 ofits servants or otherwise, beyond fifty times the REPEATED telegram rate, at which amount this telegram, if
sent as a REPEATED telegram, Is hereby veined, 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.
I. 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.
4. 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.
6. No responsibility regarding messages attaches to this Company until the shine are preSented and
itccepted 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 OF
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 case where the claim is not presented in vrrlting 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 a
6, NO Ely' }OYEE OF THIS COMPANY IS AUTHORIZED TO VARY TilL

CHARLES

. ADAMS,

CLARENCE H. MACK
EDWARD REYNOLDS.

CHARLES P. I3RUCH,

VICE-PRESIDENT.

THE FASTEST TELEGRAPH
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COPY OF LONGHAND PERSONAL LETTER

HOTEL CHELSEA
Atlantic City
December

9, 1916

Dear Governor:

I am greatly indebted to you for your long letter about the
redemption of silvers and legals and the telegram and letter (c/o Warburg) about Assay Office practice, not forgetting yours of December 4th,
referring me again to that handwritten bible of yours, which I see I must
ha e framed for ready reference!
Five weeks as an invalid have cured me
of any desire to go further, and I am planning all kinds of sobrieties.
This is a 3-day sojourn after 3-1/2 days of Reserve Agents' Conference in
Washington, Mrs. Jay accompanying me on the entire tour to keep me down.
Tomorrow Curtis is going to stop here for lunch en route for Washington
to put me in touch with events of the past week and hear the temper of
Washington. This latter I may say is tending strongly in the direction
of managing the System. Harding [P. M. W(arburg) says] feels that there
has been too much talk and too little action during the past two years,
especially on the part of the banks, and is disposed to pick up the reins
and say "git up."" Once or twice of late, when in Washington, I have made
suggestions to him whiah have been rather indifferently received. He has
always been sensitive, and I think that with his new position he feels
especially so, and rather resentful of criticism. But what a difference
in the conduct of the Board's business and relations!
The Reserve Agents
all commented on it, of course. We had a bully meeting. I read a long
wandering report which I hadn't been able to bring to time and of which I
was ashamed, covering the various proposals, largely yours, relating to
gold matters, and got a unanimous approval except one "no" on F. R. notes
and one "ho" on retiring greenbacks. I don't think the Board is going to
press very much for it that; at this short session. I am asking Cox to
mail you a copy of it and should appreciate it if you would write me of
any inaccuracies or omissions. I had in mind trying to write something
good, but [was] in such poor shape that I could only hit a few licks a day
and had no time to revise. I've asked Warburg if he thinks it can be made
any good as an argument to Congress. If he says yes, I'll try to put some
real zip into it.

I missed the opening session at which Harding spoke of the Treasury
notes, and had no chance to talk with P. M. W. on the subject as I was put
to rest between each session. However, Harding said, on the last day, speaking to the Conference, that Davison was there on Saturday and they told him
their views. The New York papers on Monday and Tuesday continued to report
the preparations to inaugurate the issue, whereupon they called up Davison's
office and told one of his partners that they might have to make a public
statement. The next day, as the papers continued to report the progress of
the issue, they made the statement. Then on Friday, as Curtis wrote you,
the curious telephone to him from Warburg about their not meaning the B. of
F. Treasury Bills. I was awfully sorry not to get a chance to talk that over


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Federal Reserve Bank of St. Louis
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December

- 2 -

9, 1916

with P. M. W. and see what he meant. I shall do so next chance I get.
Harding said that as Davison had been to see them and the papers reported
he had, they felt that the announcement a day or so later of the Treasury
Bills would be tantamount to a right on the part of the public to assume
that they approved the issue, and they had to make their position clear.
It seems to me that if they let people come to see them about issues of
securities, they are going to get into all kinds of hot water and difficulties.
If they want to know about such things, they should do it indirectly
through us and keep clear of getting involved pro and con.
This w
plan you followed on the French acceptances, and it always seemed to me wise.
I suggested Kent's going to Washington on the French acceptance credit matter after the fat was in the fire, thinking that that would be the best way
to make progress. On the whole, I believe it was well that Kent and Hemphill
went down, tho' I disapprove of the Board's getting involved in any of these
issues. I do think it a bit queer of Davison to persist in offering the
Treasury Bills after having been told by the Board that they disapproved of
banks buying them. The advice they offered to investors struck me as most
uncalled for and unhappy.
It was worded in a thoroughly Warburgian

3-4

Since writing the foregoing, Curtis has been here for
hours
on his way to Washington to post me as to matters in New York concerning all
of which I gather he has been in correspondence with you. There seems to be
something brewing regarding Starek and Warburg has written me to get up a
list of possible Class C Directors. I got your many inquiries and your
solicitude about my health, and can only assure you that this little interlude of mine has made me have in mind even more constantly than usual your
absence and has made me sympathize more keenly than usual with the causes
which have brought it about, and with that itching you often refer to, to
get back on the job and do things. It must be hellish for you.




With warmest regards,
Yours,

P. J.




POSTAL TELEGRAPH --, COMMERCIAL CABLES
AT MAIN OFFICE
BANNER BUILDING

rill STREET
R,

COLO.

TEL-. HONE: MAIN 4600

TELE RAM
CLARENCE H. MA KAY, PRESIDENT.

The Postal Telegraph-Cable Company(Incorporated)transmits and delivers this mes age subject to the terms and conditions printed on the back c th, ol ink
16D-2Q018

DESIGN PATENT BA 40529

1

4-'-'91-1 01 3

210P

DEC 1 5 1916

CB NEIN ORK D EC 14 VI
BENJ

STRONG

4100 IVIONTEVIEv BLVD
I

CONGRATULATME

DEN V ER

YOU ON APPLICATION OF BANK OF' MONTO1AIR FOR

N'irIVIBERSH1 P RECEIVED TODAY

PIERRE JAY

POSTAL TELEGRAPH-COMMERCIAL CABLES

THE GREATEST TELEGRAPH AND CABLE SYSTEM IN THE WORLD.

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

;

THE POSTAL TELEGRAPH-CABLE sT.;CMPANY (INCORPoRATED)
TRANSMITS AND' DELIVERS THE WITHIN TELEGRAM SUBJECT TO THE F0`..LOWING TERMS AND CONDITIONS:
To guard against mistakes or delays, the sender of a telegram should order it REPEA.TEI
d 12, telegraphed back to the originating office for
Comparison. For this, one-half the unrepeated telegram rate is charged in addition. Unless otherwii indica* on its face, THIS IS AN UNREPEA.TED

TELEGRAM AND PAID FOR AS SUCH, in consideration whereof it is agreed between the sender cf t le telegram and this Company as follows:
The Company shall not be liable for mistakes or delays in the transmission or delivery, of for w
cif any UNREPEATED telegram, beyond the
amount received for sending the same; nor for mistakes or delays in the transmission or delivery, -,tor non-delivery, of any REPEATED telegram, beyond
fifty times the sum received for sending the same, UNLESS SPECIALLY VALUED; nor in any c,ife for delays arising from unaypidable 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 It EPE/TED 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 eimal 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.
4. Messages will be delivered free within the established free delivery limits of the terMinal o e. For delivery at a greater distance a special charge will be
made to cover the cost of such delivery.
A. No responsibility regarding messages attaches to this Company until the saine..are pr,
qidestocepted 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 tot agent Of tin
tor the put pose 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 co,
!aim is noi presented in writing within sixty days after the
telegram is filed with the Company for transmission.
The above terms andponditions shall be binding upon the receiver as well as thee
ielegram.
e. NO EMPLOYEE OF THIS COMPANY IS AUTHORIZED TO VARY TIIE FOR'
CLASENcE H. MACKAY,

CHAS MIL

DAMS,

EDWARD REYNOLDS,

PRE

VICE-PREST. AND G

Vice-PRESIDENT.

'-I

TH 4\STEr'




MANAGER.

CHARLES P. BRUCH,
VICE-PRESIDENT.

TELEGRAPH SE

-"E IN THE WORLD

OPERATOR'S NOTATIONS,
TIME SENT, ETC.




Misc.

74

P.VRAH

FEDERAL RESERVE BANK
'NEW YORK

Postal

3:00 p.m.

UP.

(TO BE MAILED)

CONFIRMATION OF TELEGRAM
We have today telegraphed you as follows:

December 14, 1916.

Esq.,
Benjamin strong
4100 :ontview 1,oulevard

Denver Colorado

I congratulate yoU on alplication of Bank of Montclair

for membership received

today

Pierre Jay.

Charge Fed. Res. Ric
120 Broadway

B-2

FEDERAL
OF

RVE BANK

rftDRK
December 16, 1916.

Dear Governor Strong:
I have been back at the office all of this week, and yester-

day Mr. Treman and Yr. Curtis returned and we had a rather lengthy
directors' meeting.

In the afternoon I was visited by these gentle-

men who stated that they were members of an unnamed executive committee to get me out of the bank for a week or two.

Their proposals were

received somewhat as the Duma received the peace proposals, but the
only way I could rid myself of the committee was to promise, like Gover-

nor Hamlin,to give the matter very careful consideration.

I did so

yesterday evening with my doctor and he advised me that the committee
was entirely correct and that as I had not shaken off my cough as he
had expected I would, he thought I should go south for two weeks and
devote myself to getting in fine shape.

Much as I regret to do so, it

seemed to me that this was about the best time I could pick for such an
absence as nobody will think of

disosing anything new until after the

first of the year, so I have a ticket for Augusta and am going down on
the morning train to-morrow,D. V.,to see if I cannot accumulate a little
gold reserve.

I hate like thunder to be away from the bank but I guess

it is good sense.

We have all been talking a lot the past week about collecting
state bank items at par, and yesterday Higgins went down to Patchogue
and I think that we will get results from there.

To-day Hendricks is

going out to the western part of the state for a week and we hOpe to
get results there.




In the meantime we are making tentative arrang-

FEDERAL RESERVE BANK OF NEW YORK

#Z

Benjamin Strong, Esq.,

12/16/16.

ments with the express companies and are planning our organization here
to take care of the items which 150 or so new points would bring us all with the idea of putting the entire district (except private banks)
on the par list which goes out February 1st.
this plan.

I hope you approve of

Apart from the desirability of rendering this service to

our member banks as soon as possible there are two rather important
reasons for pushing it:

1st, the probable anticipation of the final

cutting out of reserve agents to, say, April or May instead of November,
and 2nd, the tremendous effort which is being made by country bankers
to induce Congress to change the law.
I understand that Tilton of Alabama has opened headquarters
in Washington and is conducting a regular lobby.

On the other hand a

number of commercial organizations are preparing to put up a fight for
the status quo.

I understand that both Owen and Glass say that there

will be nothing doing.

I just had a letter from Glass asking me for

a dozen copies of something I had written on collections for use with
members of his committee.
I telegraphed you about Stephens and am sure he will appreciate the telegram or letter you will send him.

I think we ought to try

to get some more members in New Jersey on the strength of Montclair.

I

understand that Aiken is very hopeful of getting in a number of the important trust companies in Massachusetts and some other parts of his
district.

I wish I did not feel the situation were so discouraging

just at present with regard to our New York City trust companies.

Kent went out to Chicago a couple of days ago to a meeting of
a committee of the new state bank section of the A. B. A. to discuss

possible amendments of the Act "to make it more attractive to the state




institutions."

12/16/16.

Benjamin Strong, Esq.,

FEDERAL RESERVE BANK OF NEW YORK

I told him that anything definite they could produce

would be received in a most welcome way.
I have just had lunch with E. D. Fisher who said he wanted
to talk with me about joining the Federal Reserve System.

Curtis and

I both bet that he meant personally, but we were wrong for it appears

that he is about to establish a new national bank in this city with
substantial capital, the particular feature being rather close relations
with a number of foreign countries.

This, however, is information of

a most confidential nature.
Gibson of the Liberty Bank is talking of forming a"National
Bank for Savings," with the active vice presidents of the various banks
downtown as directors,

the business of the bank to be in the nature of

a time and savings business only.

He wanted to know whether the Board

would approve of the directorate under the Clayton Act.

I told him

that I thought he had better go down and see them himself, but that it
sounded to me a' good deal like another Bankers Trust Company.

Very likely you have heard that Tom Cochran is going into
Morgan's the first of the year.
I noted your letter to Hendricks and your remarks about the
plan to make checks on Federal reserve banks circulate at par.

I was

very sorry indeed to learn that he voted for the resolution of the transit men approving the principle, which .I fully agree with you is bad.

I think you know that this matter Was referred to a committee consisting
of Treman, Fancher, Seay, Rhoads and McDougal, and I fear that the Board
is determined to do something along this line.

Warburg even seems to

think it necessary that something should be done.

That I am writing

you about is to endearor to get it dome on a basis which I think would




FEDERAL RESERVE BANK OF NEW YORK

44

Benjamin Strong, Esq.,

12/16/16.

be sound, which would be as follows:

The member bank to make such check payable at a specific
Federal reserve bank, to advise its home Federal reserve bank, and
the home Federal reserve bank to advise the paying Federal reserve
bank, perhaps guaranteeing it as well, and agreeing to pay for checks
so purchased by it on the day of. their purchase.

That would put it

on the same basis as our transit system, which is all right.

How

would you stand on such a suggestion as this, assuming that something
has to be done?
Being away for the next two weeks as well as being away for
five weeks already has rather thrown me out of joint on the annual report.

I am sending you copy of last year's, and if you have any sug-

gestions to make with regard to this year's, other than that it should

be immensely shorter and of course the historical part of it should be
omitted, I wish ever so much you would drop me a few lines at the Hotel
Bon Air, Augusta, Georgia.

I think you may possibly be interested in reading the report
of the Reserve agents' meeting as it contains quite a number of state-

ments on the part of the Board as well as of some committees which you
might find of some interest.

Don't bother to read it if you do not

feel like it.

The Warner crowd have gotten the control over the Merchants
National Bank here and are getting ready to put on a new administration.
I had a call yesterday from Mr. Lynn E. Dinkins of New Orleans and I
think you know he has been offered the presidency of the bank and is
considering quite seriously accepting it.
make any remarks on the subject.




I do not think I need to

FEDERAL RESERVE BANK OF NEW YORK 45

Benjamin

Strong,

Esq.,

12/16/16.

Faithfully yours,

j-1
Benjamin Strong, Esq.,
4100 Yontview Boulevard,
Denver, Colorado.
pJ/Rk.H







STEsm UNION

SERVICE SYMBOL
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NEWCOMB CARLTON, PRESIDENT

WESTERN.6.31.e

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Day Letter

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GEORGE W. E. ATKINS. FIRST VICE-PRESIDENT

RECEIVED AT 915-919 SEVENTEENTH STREET, DENVER, hLO.

Day Messale

Night Utter
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4100 MONTVIEW BLVD DEN,,ER COLO
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TELEPHONULAST NIGHT OF'POS IBLE CLASS C VACANCY AND

REQUESTED SUGGESTIONSBY.TUESDAY STOP HAVE SEVERAL PEOPLE WORKING ON

tT STOP WHAT WOULDYOU THINK OF AN:ACTIVE OR RETIRED PRIVATE
BANKER HEBREW OR

CHRISTIAN
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HAT SOURCE.THAN MERCHANT OR MANUFACTURE
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IF YOU LIKE IDEA WIRE ME YOUR SUGGESTION MONDAY BONA1R HOTEL

AUGUSTA. AM TRAVELING THI/IHER FOR FORTNIGHT TO SHAKE OFF COUGH
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UNSUITABLE(,
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NIGHT LETTERGRAM

THE POSTAL TELEGRAPH-CABLE COMPANY (INCORPORATED) TRANSMITS AND DELIVERS THIS NIGHT LETTERGRAM SUBJECT TO THE
TERMS AND CONDITIONS PRINTED ON THE BACK OF THIS BLANK.
CLARENCE H. MACKAY, PRESIDENIA
AA A 144 ctg fA4=ErcrAcr,

-17th S.t.,

i-nesr

at

DENVER

DE7IvER

C1211M-P-E-fl-TIVE

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The Lonair Hotel Augusta GA 1)ec 18 16
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4100
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idount View Blvd lienver Col

me not warburg and in
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not suggested any such names
f your telegram have

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barings whom i dont Icnow
George E ,rane formerly
rather urging newyork appointment so
ve said so am

jersey election next year have
there is nothing but remains

necessary
1111111111 make taken whicha shows
had X' ray

of Bronchitis to be shaken

off thanks for your solicitude.

Pierre Jay

70.

CranMer Bidg,

POSTAL TELEGRAPH-COMMERCIAL CABLES
't
ALASKA.

VANCOUVER

PACIFIC

OCEAN

JAPAN

CAN FRAN

CANAD

UNITED
AZORES

YOKOHAMA

MIDWAY

DER MvOn

ATLANTIC
OCEAN

HONOLULU

AFRICA
If I. VI NCH NT

PANAMA

FSOUTH

AMERICA

BREKTEBT 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 NIGHT LETTERGRAM SUBJECT TO THE FOLLOWING TERMS AND CONDITIONS:
will receive, not later than midnight, NIGHT LETTERGRAMS, written In plain English, to be transmitted only.for delivery on the morning
haleness day, at rates still lower than its standard night message rate. as follows:
rate for a ten-word day message shall be charged for the transmission of a .NIGHT LETTERGRAM, containing fifty words or less, and
day rate for a ten-word day message shall be charged for each additionalten words or less in such 'NIGHT LETTERGRAM.

6.

e.

To nard

l.
tutneft

rkinge

1

2,

mistakes or delays, the sender of a message should order it REPEATIED, that is, telegraphed back to the originating office for
one-halt the unreneated message rate is charged in addition. Unless Ofherwise indicated on its face, THIS IS AN UNItEPEATED
FOR AS SUCH, in consideration whereof it is agreed between the sender of the message and this Company as follows:
11 not be liable for mistakes or delays in the transmission or delivery, orffor non-delivery, of any UNREPEATED message, beyond the
sending the same; nor for mistakes or delays in the transmission or delivery, or for non-delivery, of any REPEATED message, beyond
cored for sending the same. UNLESS SPECIALLY VALUED; nor in any case for delays arising from unavoidable interruption in the
OR FOR ERRORS IN CIPHER OR OBSCURE MESSAGES.

III ih'e%siVComnany shall not be liable for damages for any mistakes or delays in the transmission or delivery, or for the non-delivery of this

message, whether causedby the negligence Of its servants or othernise, beyond fifty times the REPEATED message rate, at which amount this message, if
sent as a REPEATED message, is hereby Tallied, hitless a greater value is stated in writing hereon at the time the message is offered tothe Company for
transmission, and an additional Bum paid or agreed to be paid based on such value equal to one-tenth of one per cent, thereof.
a. The Company. is hereby made the agent of the sender, without liability, to forward this message over the lines of any other Company when necessary
to reach its destination.
4.
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.
5. 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 tins 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.
6.
This Company shall not be liable for damages or statutory penalties in any ease where the claim is not presented in writing within thirty days after the
message is filed with the Company for transmission.

In further consideration of the reduced rate for this special "I#HT LETTERGRAM" service, the following special terms are hereby agreed to:
ompang,homailed,gLdeitnation.to the addressees and the Company shall be deemed to
NIGHT LETTERGRAMS may at the option of the Telegra
have discharged its obligation in such cases with respect t elivery by ffiading diftffi N IITIETTERGRAMS at destination, postage prepaid.
NIGHT LETTERGRAMS shall be written in plain English'. COrle language is not permitted.
7.
The above terms and conditions shall be binding upon the receiver as well as the sender of this NIGHT LETTERGRAM.
I. NO EMPLOYEE OF THIS COMPANY IS AUTHORIZED TO VARY THE FOREGOING.
CLARENCE H. MACKAY. PRESIDENT.
CHARLES P. BRUCH,
EDWARD REYNOLDS, VICE-PREST. AND GENERAL MANAGER.
r:HARLES C. ADAMS.
V' '

rH

.RESIDENT

VICE-PRESIDENT.

FASTEST TELEGRAPH SERVICE IN THE WORLD




OPERATOR'S NOTATIONS,

TIME SENT, ETC.

NEWCOMB CARLTON, PRESIDENT

GEORGE W. E. ATKINS, FIRST VICE-PRESIDENT

RECEIVED AT

5 DEC

24

Pfil

8

131,CH 49 NL

AIKEN SCAR 24
BENJAMINE STRONG

4100 MONTVIEW BLULEVARD DENVER COLO

MER:A XMAS FROM ONE TEMPORARY EXILE TO ANOTHER NEXT YEAR WE MUST
EXCHANGE THESE GREETINGS AT PINE AND NASSAU JUST RECEIVED HERE TODAY
rolimAL AUTHORIZATION FROM BOARD UNDER SEAL TO ESTABLISH ENGLISH

.RECWROCAL AGENCY AND CONGRATULATE YOU WARMLY IT WILL BL.A WELCOME
PIECE OF CHRISTMAS NEWS FOR YOU



.

PIERRE JAY.

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COPY OF LONGHAND LETTER
PALMETO INN
Aiken, South Carolina

December

24, 1916

Dear Ben:

Do you think we've carried on formality of address long enough to satisfy
those Congressional investigators you always have in the back of your head
that we never speak as we pass by and only address one another in writing?
If not, let's go back to it for another year. But just at this present moment,
when I think of your sitting out there in Denver, however temporary it may be,
it doesn't suit me at all.
I was mighty glad to hear from someone that the
boys were going out for the holidays to make quite a family party of it.
Well, next year, as I telegraphed you today, we must both be back at the old
stand.
Really, on absence, you haven't got much on me so far. You've been
away six months and I three and a half (since July 1). I couldn't bear
Augusttand so came over here where I knew no one but am far more comfortable.
Today I ran into Otto Bannard, likewise alone here, and we're to eat Christmas dinner together tomorrow.
Well, as usual, I have some letters from you to answer, but most of all
to answer for that "book shower," of which a few have reached me here.
It
was bully of you to think of sending them, and nothing you could have picked
would I be more glad to have than the Withers books. As soon as I retired
to bed in November, I sent word to Miss Parker to send me up all she had in
the library, which was three, and I have read them all not once but twice.
He writes in such a delightful style and so simply and clearly that to me
they seem classics and I am very keen at possessing not only those I've read
but two or three more, according to accounts from home, together with a book
by Phillips with which I'm not familiar. I see you mean to cure my ignorance,
and I'll put these in the same class with your famous longhand letter of admonition and get busy. The Jusserand is put in as a foil against financial
over-stimulation, I suppose. I heard him speak at a dinner last winter. He
did it in a short delightftl way and the breface to his book which M read,
seemed to be in the same vein. But I couldn't somehow see him in the White
House tennis set.
Answering your letter pf December 15th in which you refer to Harding's reopening the foreign investment subject at Boston, I agree that it would have
been far better to let the original stand, but that doesn't seem to be the
Washington way, judging from Lansing's recent performances. I won't be able
to see your letter about foreign arrangements till I get back. Very likely it
will have gone forward by that time. Today, I received an unopened letter from
the Board, marked "Confidential," and forwarded from the office. It contained
our magna charter, under seal, as follows:

Voted that the Federal Reserve Bank of N.Y. be authorized to appoint
as its correspondent and agent the Bank of England, of London, England, and that it be further authorized to open and maintain banking
accounts with and for said correspondent and agent for the purpose
of purchasing, selling, and collecting bills of exchange in accordance
with the provisions of Section 14 and other provisions of the Federal
Reserve Act, as amended; and for such other purposes as may be permitted under said Federal Reserve Act, as amended.
I hereby certify that the above is a true extract from the minutes of
the meeting of the Federal Reserve Board held on Tuesday, December 19,
H. PARKER WILLIS,
Secretary




1916.

Page 2

December 24, 19

That seems pretty satisfactory, doesn't it?
I don't altogether agree
you about the Board's showing distrust of your intelligence and intentions.
I think that they, in common with all Washington, merely had that preelection fear of rocking the boat. Six weeks before election, Harding predicted to me the exact action which Lansing actually took as soon as election
was over!

Your letter to Warburg at which you say you fear he took offense,
curiously, came in an envelope to me, and I read it, thinking it a copy for
my perusal. I thought it most contained and restrained in view of what I
knew your feelings were.
I handed it to him personally in Washington a few
days later, and he read it eagerly but didn't seem at all excited about it.
We had no opportunity to discuss this matter, to my regret, but also somewhat
to my relief as I was feeling pretty shaky while there and not anxious to get
into another heated argument besides our disagreement about our establishing
a differential rate on the renewal credit acceptances which I couldn't avoid
and which kept me awake all one night. Some day, I want to get at the bottom
of Warburg's curious telephone talk with Curtis about saying that they did not
mean in their statement to refer to the B. of F. [Bank of France] Treasury
bills. That seems to me a most extraordinary thing, in view of what I wrote
you Harding told the Agents.
I felt tempted to inquire about it right
but didn't think it would be fair to P. M. W. and had no other opportunity
during the conference.

I should not put Warburg's silence down to his being offended, but
to his being very busy with amendments, annual report, and a dozen other
things incident to the end of the year.

Today, I have your letter of 18th commenting on my report and returning it, for which I am very grateful. When I know what a poor effort it was,
your last sentence, calling it "a fine contribution to the discussion" makes
me think of a trip I took with a committee of the A. B. A. some years ago
through the Central West holding hearings.
John Hagey of the First Na
Chicago would never say very much at the hearings but at the end of each, however poor it was, would rise and on behalf of the committee thank the bankers
for "their very substantial contribution to the committee's study of the subject."
This report was thrown together from ideas of yours, largely, at a time when I
hadn't any mind to think or
energy or time to revise, merely in order t
committee shouldn't fall down at the conference.
The only 'contributio
perhaps the object and the obstacles to its attainment, as a whole, and I had
felt that perhaps if there was anything of value in this idea I would work it
over with a view to trying to make something out of it which would help in
Congress. I asked Warburg to read it with this in view, but have not heard
from him and doubt if he has had time. His letter to Glass last year, which
he seemed to want kept very confidential, I thought very unconvincing and so
full of statistics as to be bewildering.
I am altogether opposed to th
of trying to get important amendments through without explaining them fully to
the banking community and getting their cooperation and backing. If the Board
proposes far reaching and revolutionary amendments -- like their present reserve
proposals, for example -- and says nothing to the banks, they are going to lose
standing (on account of misunderstanding) with many important bankers.




Page 3

December 24,

1916

I am glad to have the fundamental idea of removing Congress' fear
of inflation stated so definitely. I had not realized it before. In dwelling
on a "free market for gold," I used a wrong phrase. What I meant was maintenance of gold payment, I think, however, that Withers uses the phrase with my
meaning in some of his disquisitions.

I want to keep the Delano letter for a while.
When I get ba
have it copied and return.
In the meantime, I wish you'd bundle off to
copies of the other letters to which you refer.
I want to get all the
I can, in case it seems worth while to work the matter over either as an
amended version of the report or as a speech or the like, to be made anew.
I appreciate very much your taking all the trouble you have in going over it
and writing at such length such excellent suggestions. By the way, where is
your article for the Times? Hoffman, formerly with Journal of Commerce, now
of Times, is at me for it daily.
I don't think you need fear Miller's feelings.
I have an impression, only that, that his views have modified.

The result of my report was to crystallize the views of all the
Agents, which was worth something.
As I wrote, Martin was against F.
serve and Ramsey (Dallas) against retiring the greenbacks. With those two partial
exceptions, all were for the whole report. I thought that was something done as
as-Ihad thought there would be a lot of opposition to one thing or another.

The enclosed, re directors, scrawled two days ago answers yours of 18th.
Yes, I suggested the Hebrew without previous suggestion;
merely to g
and ascertain how you thought it would be regarded.
I have no prejud
the good ones, particularly those you mention, but I did not know how other
bankers would feel and so wired you.
As to the cough, it is merely the hangover of bronchitis--two attacks.
The doctor had my sputum examined and found no signs of T. B. Then he had me
X-rayed and while there were traces of some old lesions, there was nothing indicating any present infection. He had no idea there was any, but merely did
this to take every precaution. He says that as soon as I build up, I will throw
the cough off, and that's what I'm here for, to be out in mild climate as much
as possible and get in good shape. Dr. Treman gave me a two weeks leave till Jan.
If I need it, I'm going to take more, but I detest being away. This F. R.
1st.
Bankitis is a real germ.

With my best thanks for the books, and affectionate regards, I am
Yours,

P. J.

Please note that on longhand you're beaten to a frazzle. I wish I
could have been spending this fortnight in Denver, but the doctor thought
I must have a warmer place.
P. S.







Day Message

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NL

If none of these three symbols
appears after the check number of

NEWCOMB CARLTON. PRESIDENT

words) this is a day message. Otherwise its character is indicated by the

symbol appearing after the check.

_AM.4.;.:,1)/- L C(7)
TELEPHONS Yon 2545.

RECtiVED

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1UN STRONG

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EVIDENTLY OFFI:IAL PEARDING BANK

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ADDRESS NOW PLAMETTO

ME SEVEFA47 TIMES THAT NOTHING

STOP TELEGRAPH ME PROMPTLY YOUR
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WILL TELEPHONE WASHINGTON

INN AIKEN FOUTHCAROLINA

PIERRE JAY
143PM

^0111111Orilineer----.AL

PALMETTO INN
AIKEN, SOUTH CAROLINA

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41,




COPY OF LONGHAND LEITEx

05/

PALMETTO INN
Aiken, South Carolina
December 260,

1916

Dear Ben:

I've decided to accept the Trust Co. lunch invitation and to
work over the Federal Reserve Agents' gold report, into shape to present
to the trust company membership;
also, if I make a go of it, I think it
may be worth printing and circulating. I trust you'll approve.
Since I saw the Board's announcement of the B. of E. [Bank of
England] matter, I have been hitting every ceiling in sight, and have
imagined you going entirely out of sight.
Indeed, since I received no
reply from you to my wire this A. M., I fear you may literally have gone
out of sight.
I've been trying to get word from the office about it, not liking
to call up Washington till I heard from you, and Curtis wires that Harding
says "there were reasons." It seems to me the most unpardonable thing. I
had spoken to Delano about the necessity of secrecy, to which he readily
agreed, and I had spoken to Harding twice or three times, and he had always
assured me that "I need have no fear, nothing would come out from their
end."

It seems to me not only discourteous to us, which we could bear,
being pachyderms of the first rank by this time, but fatally discourteous
to the Bank of England, and then the wording of the announcement -- speaking
of it, first, as a move "to establish dollar exchange." Really such
crudity in diplomacy is inconceivable.
It made me think of that he
Washington at which Kent and Hemphill were present and got their medicine in
good doses, and, as we were walking out, J. S. Williams took Hemphill by
the arm in good trust company convention style, and said he thought it would
be nice if the Guaranty Trust could join the System!

Well, I want to sleep a little if I can get this off my mind, so
I won't really let myself go on it. But it certainly is the top notcher,
and if it strikes me this way, what must it seem to you to have your own pet
baby beaten up in such a way.
Without further explosions, and hoping to hear a little
across the wire from you in the morning, good night.




Yrs.,
P. J.

"75" come




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WESTERN UNION

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NEWCOME CARLTON, PRESIDEN7

words) th is is a day message. Otherwise its character is indicated by the

symbol appearing after the check.

jcheek.

TELEP
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-8 D G 174
Sc, .055 AM DEC 27
BV:
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BANK OF FRANCE-STOP-IN
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UNFAVORABLE IMPRESSION THERE UNLESS HE
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IS ACTIVELY NEGOTIATING
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RO THIS PROMPTLY -- STOP-WARBURG WIRES?IXBED
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FOR EXPLANATION-STOP-I SHALL
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TREMAN-STOP-AGUSTA FORWARDS
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ND TELEGRAMS.
PIERRE JAY.

109AM




Day Letter

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RECEIVER Al
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Nite

NL
If none of these three symbols
'Night Letter

appears after the check number of
words)this is a day message. Otherwise its character is indicated by the

NEWCOM B CARLTON, PRESIDENT

,check.

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TELEPHONED TO

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'

DEC 27-BENJ STRONG
'HEWES KIRKWOOD INN, ESTES PARK
FOR EVERYTHING TO GO THROUGH
THANKS TELEGRAM AGREE MUCH BETTER
IS AUTHORIZED TO CONDUCT NEGOTINEWYORK STOP NEUFLIZE THINKS HE
PALLAINS APPROVAL AND AS
'MONS HERE FOR PALLAIN SUBJECT TO
ANXIOUS FOR THREE MONTHS TO
jE.WRITTEN YOU HAS BEEN
ACCOUNT AND DRAW ON BANK
dAVE'HtS PRINCIPAL OPEN CHECKING
STOP PLEASE
WIRING ME DEVELOPMENTS
EOAL RANK STOP CURTIS
VIEWS ABOUT OUR ADVISORY COUNCILMAN
1TE'ME TO NEWYORK YOUR
BILL MATTER SHOULD WE CHANGE
FIN VIEW OF TREASURE
SAY NOT STOP HAVE DOUBT
SHOULD
OF REELECTING
SO OFTEN THEREBY LEAVING
ER OF ELECTING COUNCILMAN ABSENT
IN COUNCIL UPON WHOSE OPINIONS BOARD
RK VIEWS UNREPRESENTED
WE ELECT COUNCILMAN JANY FOURTP
INCREASING IMPORTANCE sToe
PL

4kIKEN S C

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I

PIZFRE.JAY.
922AM DEC 28

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