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F.D. 12A.3


Federal Reserve Bank


District No. 2
Correspondence Files Division



/71.42 VS,


"Pc) ,57--.71 09-5 7-&72... a 54)


May 7,5, 1921.

My dear Rill:

have been thinking of what you uaid stout the new Poet Office in New
York, -Ind make the following suggestions:

(1) Mr. Darwin, P. Kingsley.

He is pr

dent of the New York Life

Insurance Company, arid at the nresont time hnppene also to be the president of the
Chamber of Commeroe of the State of New York.

nen, and a
of every on



is one of our foremost buninesr,

of rare ability, courage ,Ind good sense.

Un enjoys the confidence

nnd if you could get him on such a Committee, as you mentioned, you

could not find a better man.

I do not know what hiEpoliticn mny be.

.(2) Mr. Alexander Gilbert.

Ur. Gilbert was formerly president of the

siarket & Fulton Nutional Bank, a very fine institution, and vhila be in on elderly
wan, ha is a man of eplendid nttainments and very well thought of in the benking

His home is in Plainfield, N. J., and I am not sure a-nether he main-

tnins a New York residence.

He retired sometime AV from active business, and I

assume might be able to devote coneidenble time to such n job ne you have iu eind.

I think he is a Republican.
Atfred E. Marling.
Chamber of Commerce.

4r. Wurling was recently president of the

He is a partner in the firm of HoraceEly & Company, one nf

the leading real estate firma ia this city, nnd in evnry way a splendid



also, I believe, le a Republican.
John W. Davie, recently Ambaseadcr to Great Britnin, no a partner

in the law firm of Stetson, Jennings & Russell.
and enjnye overybody,e confidenoe in this city.

He is a iood old line Democrat,

May 21, 1921

(5) Freak L. Polk.

He else is a partner in the came lee, flrm, end I

do not need to mention his record in the last Adminietratien.

Fe is a splendid

fellow and enjoys everybody'r eonfidence.

I would lite to name some one if possible eho hes e tvecial familiarity
eith the mail order business, with the irobe m cf newsreeer and periedicel trans,)orttion, and eitb municipal problens, generally; but here we approach de.ngereuF

ground, becsuee of cpecial interests.

If you desire N man of first-rate experience

in neeepeper trens2ortetion and municipal probleme, generally, at sell ae a men eho
has bed goer' neefeieper experience, I euld susoet Mr. George N:clineny, former

president of the Boar ef 41dermen ef qek Turk City, an ewinent refory,..4r, 4aA s man
of very high ,,httracttr, who ie nee, I believe, connected pith the Aew fort Times.

I eceuld hesitste t sugEect eny one directly coneeeted wih the transportation

The nseee ere euge;ested offhend, end if yeu wish me to pureue the

eubject further, give me a little more definite ides c0 the ty-e of in that you
wish, and I P7 leek inte it mere fully ,:itt eogrd to special eualifiestions.
Yeure very truly,

flonoreble Will H. flays,
Poetmacter General,
Vashington, D. C.




June M, 19?1.

Dear Aill:

Thank you for your nice letter of yesterday's date, just received.

1 knew you would be impressed with Mr. oakey, and, of course, regret it very
much, because you were certain to be tempted to steal him from me.
I have
just had a long talk with him, and he has told M9 of what transpired in
Waehington yeeterdey.

Before discussing specific suggestions, let me make this the opportunity for a few reflections, strictly my own, in regard te the budget situation.
Mr. Dawes will enter his office with enthueiasn, and energy, and
ambition to nnke e greet record. The key to success, however, does not lie
in mass meetings or forensic effort. If he succeeds in gaining the friendship
and eoeperetion of the members of the Cabinet, end in enlisting their hearty
support in putting through a sound program, he will succeed. If he fails to
eeteblieh exactiy the right relatioeships with the members of the Cabinet, his
effort will be a dismal failure. One sink by a Cabinet officer to his subordin-

ate can dfoet tne uirector ef the budget in auy plan, so far as it relates to
that department.

would divide the members of the Cabinet into two classes, one class
eeke, and possibly some other,
all very busy, who will have every desire to coonerate, but unleve they have a
real eympelny A,ILL nr. DE,W06 an witn bi6 plane, they will ignore him and will
not make the required effort whicb will accomplish results. The other class
of the Cabinet, eoneieting neeeioly et yeureeif, kr. Hoover, Mr. Denby, ane some
others, will tolerate a certein %mount of interference, insistence and annoyance,
being such men as Mr. Hughes, Mr. Mallen, Mr.

but unlese the spirit with vhich the work is undertaken is just right, there Will
tioe when you will tell the director of the budget to leave you alone.
I an eure I am right about this as well as in suggesting that some one tell ilfr.
Dawes that his first bin job es to gain the support of the nembers of the Cabinet.
The next etep will be to have a plan. No budget plan will be created
by having some one wave his arms and make gestures and a lot of noises. Some
one with a mind trained to such matters must sit down quietly, without interruption, eith pencil and paper and work out a concrete plan of procedure, both ae
to organization and as to the work the organization is to nerform. I do not
know whether Yr. Dewee Is qualified to do that or not. My surmise is Orlt most
of his work heretofore Le been acconplished by getting men to do that sort of
thing. Shouting for economy will not make economy, and some one must point the
way to economy; which brings ee to the point of suggesting thet the man whom you
need can be either a help to Mr. Dawes or a hindrance, according to the way in

which the relationship is established.

June !0, 1921.

If Mr. Farrell proposes to send Mr. Filbert to tackle this job, it
ic not impossible that "the tail will wag the dog.4 I have no doubt thet Mr.
Filbert, from what I know of his work for the steel corporetinn, has done the
biggest job along this line that ever was undertaken. As I recAll, he aet up
the whole scheme of accounting for the steel corporation when it was first
organized twenty years ago; and not only thet, but he devised the plan of inter-

company cost .ccounting, which I have been told is a very marvelous and important


Probably you could not get t better :an then Yr. Filbert, if he is the

wan suggested, or next to him his associate', who would likely be as familiar

with it as Yr. Filbert hireelf.

As to Yr. akey; I have no selfish thought in mind as to bis
released for this job, but merely tieh to be eure that the best thing is done.
ter. i eheuld
To take MAI teay frem the tank just nee eouid be e serious

explain that we are in the midet of a thorough-going and fundamental reorganization of the whole plant, ttkine advantage of the preeent quiet time to apply our
experience with the experimental organization which wae set up at the coaclueion
of the wer. He is right in the eidet of this work witn e staff of men, and to
take him off it just now would really be a serious blow. Furthermore, it will
be poeeible fer us to find a men who 5e oorreeecndingly eapable for the work
which you wish, and I am proposing to sand you a list in a day or two, with
something of their ennlifient.tions.

It is not at 131 to er. Naeyle liecredit that he might not eork eith

Mr. D3406 as well as some other who could be suggested. Ho bac ctrong And
definite opiniene o* his own. That le the reason whyhA is a g,o0,1 ,,$4al, end in

orier that his work may Le at its best, I find that it is desirable be let hie
run his job and not to try be run it for hisYou knot that I will do anything erid everything that es askee to

promote this budget. eovement, in bion I have been keenly interested since tha
tue Woktd tostarq, ane in a ;_eeeure feel reoii for it teieg on t.ii

If the success of the e'en depended upon your having 'er. eatey, I would
feel di!2erently ebout it, out et re,Illr deee not dAi.Fok; ueen these; ee if you
will let es eclect POMO one,, I believe you can get all the results deeired,
tebie heee, 4n wheee the rroaevey Depertnent
without eerieuely cramelag the or
ie no' so much interested.

Please pardon the frank statemeate in this letter.

by my deep concern for the eucceee of whet is teing lone.
our very truly,

Honorable dill H. Ap

c/o Post .)fifice 1/6.13iiiIrrent,
Weanington, D. C.

They ,r() inspired

July 1, 1921.


Dear Will:

This letter is not written to add to your difficulties and anxieties, but
rather to let off steam. You are simply the victim, and if you please may tear

my letter up without answering it.


The Republican Party has just introduced the long expected Tariff bill.
I am not aware whether it may be considered what is called an Administration measure,
or not. It is reported to levy duties upon imports at a supposed rate of about
20% ad valerum.
It contains a provision for establishing so-called American
valuations, whatever they may be.
This bill proceeds upon the essentially unsound and vicious doctrine, that
a nation can grow rich out of its export trade.
Nothing could be more fallacioup,

especially in the case of a nation which has a wealth of raw materials for export.
Nations grow rich out of trades out of the exchange of commodities which it produces
by reason of special resources or special talents to better advantage than other
nations, and they are paid for those goods by importing goods produced under like
advantages by other nations.

These gentlemen at the Capitol seem to think that we

can continue to export, without importing. The fact is, that we fill export in
just about the same volume as we import. No more and no less. And if we expect
to get the debts owing us by Europe paid, we must import more than we export. If
we put a prohibitive tariff upon imports, we by so much restrict our exports, and
further, make it impossible for those who owe us money to pay it. Not only does
this tariff operate as a barrier to our trade, both in and out, but it will have the
effect of increasing production costs so that in due time we will be out of the
running because we cannot compete. This is an age and era of people of inconsistencies. We say to the nations of Europe - Pay us the $11 billions that you owe us, and then we make it impossible for them to pay it by prohibitive tariff.
to the nations of Europe; We wish to be the world'e banker, and establish

We say


institutions at your capitals; and then our states pass laws prohibiting them from
establishing banks in our country. We undertake a vast program of national economy

with one hand, and with the other hand engage ourselves in framing legislation to
&eke the most extravagant and unnecessary gift to the men in our recent army, ever
known in history.

It all looks very bad to me, and unless I am mistaken:, this tariff bill,
if it passes, will come back some day and work the destruction of the political party
that adopts it.

You may be interested to know that I have not heard one man, Republican or
Democrat, importer or exporter, in any line of trade or profession, who has a good
word to say for it. It strikes me as being economically unsound, politically unwise,
and likely to be suicidal in its effect. Why is it necessary to do such a foolish

I will be in Washington sometime next week, and hope you can take dinner
Aith my best regards, as always,
Honorable Will H. Ha s
Yours sincerely,
 Post Office
Washington, D. C.

with inc the night that I will be there.
Federal Reserve Bank of St. Louis

Augast 6, 1921.



Thank you for your note of the first*

Hoover is quite right. ",749 have all been iiving in a
situaticn which can only be described by the phrase "Be damned if
you do, add be damned if rou clen't." That helps one hurts another.
biclorod is a news slip which appears to touch on that sane raatter.
I supoose you sow that we have locked armes with John
ciscilton i1liu.
?or your own private information, I want you
to know that in the interest of the Reserve 3ystem and Of the Reserve
Bank and, of the country .nerally, (not to mention other arid more

personal considerations) I ar going to stick to the job of des.ling
with his criticisms until a :!iml and definite conclusion is reached,
If it takes all $131117101* and until next January, when the 3omm1ssion
Ina...szos its £n1 re,,) or to g OW re se .
That ,r."^e doesn't know yet, but

he has started something and some day he wilt be trying to sloe it.
kaithfally yours,

Honorable V111 H. Haus,

Postmaster General,
Washington, D. G.



O, 1922.

Dear 4ill:
A great many thanks for your note if January 14. I have no

copy of that letter Thieh I *rote in pencil longhand.

If you still

have it, mould you eend it beck to nn mad let me have a copy made, and

I will return the original to you, if you wish it.
nevem MS so restlese, imeatient, dissatisfied, and distressed at being laid up, 86 during the past to months,.

Sone *ay

I felt as though the ground had been knocked out from under my feet


time Olen a firm footing was needed, if ever it *Auld be


accept my thanks for the help I knoa yru hhve given me.

am sending you elth this every possible good Irish for
success in ycur new venture.

It givos me some real joy to know

that yr,u are going to be with us in New York, as I believe is to he
the case, and nos, my dear 1111, you will be friend and neighbor, as

would not othersisa be rdossible, because I hope to see a lot of you.

Please also take care of yourself.
/ reciprocate that word of affection.
Sincerely yours,

Honorable gill H.
c/o Postmaeter,

February 27, li)22.

Dear gill:

The note yeu erete me on November 21 reached me last meek.
looked as though the mail service was rather ragged, but the fact is that

the letter was ene of recommendation presented by Yr. John Fuller; hence
the delay. I am having him leeked up very carefully. Just new there
is net a blessed job in the bank. There is no demand and ee are letting
people go. -3/1 the other hand, opportunities for ,7,es1tiens are frequently
arising here, and I have asked Mr. Fuller to send me a statement of his
experience, which be has done, and I am having him investigated very
carefully, as xe always de, and the minute something turns up vhich
interest him, i will coo that he is advised.


Now a word about yourself. glen we last met you intimated
that you would be in Nes York some time in Merch. Cif ocurse you sill

have an office here, and a home here. Please consider the following
serious prupesal, which is not simply polite but selfish in purpose.
Some time in June, Katherine and Mise Orlich move to goods Hole, *here

they stay until the latter part of September.

I am going to keep my
apartment open, and if I am alone Caere will simply keep my man servant
and get my meals at the club. If I could get some congenial cemeanion

to live with me, I would pick out a good cook, and try and live like a
respectable citizen at home. If you have no other plans which are

more important, why don't yeu come and live with me this summer, and

dive yourself a chance to leok about for a permanent place to live, and

then you will be sure that you will be making no mistakes, and furthermore,
will have time to fix yourself up comfortably.
My man will brush your shoes and clethes end keep them pressed,

and generally leek after your welfare, otherwise he will not eave eneugh


If it relieves your conscience, I will let you pay half the bills,

but they will be se small that it en't be worth talking ebeut; but I
sculd infinitely prefer to have you just come and visit me. Don't turn
this down without sincere reflection, for it will give me a great deui

pleasure, and have the additienal advantage of keeping me home now and
Further than that, if you want to entertain your friends there,
you can de it at any time and as often as you wish, just as though you were

there alene, aad I will arrange to make myself scarce, because I would
not hesitate to ask you to de the same in case I were giving a


February 27, 19?.2.

I hope your trip set you up splendidly, and I am looking
for4ard to having you for a real neighbor, and if possible, companion
this summer.

kfy best to you,
As al vays,

i11 H. Hays,
c/o Post :::ffice Department,
Yashington, D. C.




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