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No

Federal Reserve Bank

--17RONG

District No. 2
Correspondence Files Division

PAPERS

SUBJECT




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December 11, 1921.

RE Senate Bill No. 2749, regarding
appropriatione for future periods.
of depreueion.
My deur Senator Borah:

Ae a member of the recent conference on uneayloyment, I should like
very cordially to commend the bill which has been introduced by Senator Kenyon,
and which tete been referred to the Committee on Education and Labor, dealing

with the euestion of mitigating, as rev as poseible, periods of severe unemployment.

Ab you arc aware, thie idea nee been many timee proposed by very

able economists, both in this country and in England; and I think it would
readily have the approval of moet men of sound judgment.
The main difficulty,
of course, is thet of determining the approach of theee periods and of orwanieing the work of governmental and municipal egenciee in time to be of Offective
service., To this; end it ie desirable that we uhould have the largeet
possible fund of informstion and statistical meterial regarding the movemente
of business and trade; and these would be of lieu/a if not greater value to
corporate end privete businome se well.

The gain ueefulneee of the bill, therefore, ppeers to me that of
advancing the discovery and printing of such material, an,!. tee 'such I think
it would commend itself very favorably to the good eenne of the country.
Believe me, wit!: very high regards,
Sincerely youre,

BENJ. STRONG

Honorable hilliam E. Borah,
cie Senate Committee on
Education and Labor,
,ehington, D. C.







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'ILLIAM M. CALDER, N. V., CI-LW/MAN.
JOSEPH I. FRANCE. MD.
MEDILL McCORMICK , ILL.

Rirus A. JONES. N. MEX.
McKELLAR, TENN.

'1Ertifeb ...States Zenale,

CHAS. W. HALL, JR.




CLERK.

COMMITTEE TO

AUDIT AND CONTROL THE CONTINGENT EXPENSES
OF THE SENATE.

December 13, 1921.'

Hon. Benjamin Strong,
Federal Reserve Bank,
New York City.

My dear Mr. Strong:
I have your letter concerning 5.2749,
introduced by Senator Kenyon, and shall be very
glad to join with him in securing its favorable
consideration.

Very truly yours,

#

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ALBERT B. CUMMINS,
HAIRMAN.




'Zrnifeb ,Sfatez Zenate,
COMMITTEE ON INTERSTATE COMMERCE.

Des Moines, Iowa.

May 14, 1923.

My dear Carl:

I have yours of the 11th instant.

I am sure that I would fine the meeting of
the National Monetary Association not only interesting

but instructive, and with me upon that subject there is
a fertile field for instruction.

It is not possible,

however, for me to be in the East at that time, as I
have my hands full in taking care of my engagements in the
west.

I am none the less grateful for your remembrance.

I suppose I am in a sense responsible for the

appointment,of Mr. Cunningham, the new member of the Federal
,

Reserve Board.

Mr. Cunningham is an upright, sane, competent

man, and will, I think, be a helpful member of the Board.
Naturally he is M4-114deep1y interested in the operations of

the Board as they effect the farmers, but I believe his views

upon the inflation of credits and currency are essentially
sound.

From every standpoint the appointment was, in my

judgment, the best that could have been made.

CUMMINS,
.AIRMAN.




'11Cnifeti

States Zenctle,

COMMITTEE ON INTERSTATE COMMERCE.

2.

You remind me of my trip last year into
New England.

I made the trip and it was one of the

most delightful of my experience.
Hoping that I will have an opportunity to
see you and talk over matters after my return to Washington,
I am,

Yours cordially,

MY. Carl Snyder,
Fifteen Nassau Street,
New York, N. Y.




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November M,

Dear Senator Hitchcock:

This note will be presented to you by my friend,
Mr. Eigo rukai, Deputy Governer of the Bank of Japan.
Mr. Fukti is spending eome time 14 Washington, dur-

ing the Conference on Limitation of Armament, actino, in the

capacity or financih/ pdviser to the delegates.

During Ty recent visit in Japan, I had the ;rivilege
of becoming well aoluatnted with the officers of the Bank of
Jaoan, and feel that Mr. rukai has become a warm personal

friend and associate.

Our relations with his institution

are of the closest.
He will esteem it a privilege of having the oppor-

tunity of seeing you while in *ashington, and I shall greatly
apreciate any courtesies which you are able to show him.
Thanking you in anticipations, and with the assurance
of my regard, believe n.e,

Yours faithfully,

Honorable Gilbert M. Hitchcock,
United States Senate,
Washington, D. C.

November !Mt 1921.

Dear Senator Hitchcock:

With this I an enclosing a copy of a letter of
introduction which I have just sent to my friend, Mr. Eigo

Fukai, which will explain itself.
w

Mr. Fukai Was one of tha financial advisers to the

japanese Delegation to the Peace Conference In Psris.

At

one time be represented the Bank of Japan In London, and when

a yound man was Drivate secretary to Marquis Y,atukata.

Mr. Fukai speaks English fluently and is one of the
best informed men that I met in Japan.

I shall greatly appreciate any courtesies that you
are able to chew him, and especially any assistance which you

are able to render him during his stay in Washington.
Thanking you in anticipation, and with cordial r.-.1
gards, Believe me,

Yours very truly,

6onorable Gilbert. M. Hitchcock,

United States Senate,
washington, D. C.
Enc.
GB: MN







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BOIES PENROSE.PA.. CHAIRMAN.
INTER J. MCCUMBER, N. DAK, FURNIFOLO MC L. SIMMONS. N. C.
REED ,MOOT. UTAH.
JOHN SHARP WILLIAMS, MISS.
ROBE
A FOLLETTE. WIS.
ANORIEUS A. JONES, N. MEX.
ILLINGHAM. VT.
PETER G. GERRY. R. I.
GEORGE P.
LEAN, CONN.
JAMES A. REM MO.
CHARLES CURTIS. KANS.
DAVID I. WALSH. MASS.
JAMES E. WATSON. IND.
WILLIAM M. CALDER, N.V.
HOWARD SUTHERLAND. W. VA,
LEIGHTON C. TAYLOR, CLERK.




''Alltlerifeb Zfatez Zenafe/
COMMITTEE ON FINANCE.

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December 12, 1921.

Ir. Benj. Strong,
Federal Reserve Bank of New York,
New York City.
My dear Mr. Strong:
Senator

4.

Jones is at present out of

and in his absence I beg
letter to him of the

'OD

acknowledge

the

city,

receipt of your

oosE

IN FILE.

instant in regard to S. 2749.-"'

Please be assured that same will be brought to his attention upon his return.
Very truly yours,

rd

Secretary.

t.,A.ERAL FR
DEG 3.31%',1

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The attached letter was sent to the following U. S. Senators, who
are members

of

the Senate Committee on Education and Labor:

Honorable William S. Kenyon, Chairman
Honorable. William E. Borah
Honorable Thomas Sterling
Honorable Lawrence C. Phipps
Honorable Francis E. Warren
Honorable Frank K. Kellogg
Honorable Samuel M. Shortridge
Honorable Andrieus A. Jones
Honorable Kenneth McKellar
Honorable Josiah 0. Wolcott
Honorable David I. Walsh

also to the




Honorable James W. Wadsworth,Jr., and
Honorable William M. Calder, Senators from New York.

December 1j, 1921

,4

Hon. William S. Kenyon,
Chsirman, Senate Committee on
73ducation and Labor,
WashIngton, D. C.

ee"'

t.0°SE

Re. senate Rill No. 2749,
regarding appropriations for
future periods of depression.

My dear Senator Kenyon:

As a member of the reeont conference on ueeepleyment, I should
like very cordially to zommend the bill Ithich you have introduced, and
which has been referred to the Committee on Educatioe and Labor, dealing

with the question of mitigatine, ao far as possible, perlodo of severe
uneeployeent.

s you are rware, this idea has been many tines proposed by
very able eeonomists, both in this eountry and in LIngland; and I think
it would readily have the epproval of most men of sound judgnent. The
main diffLcalty, o! course, is that of deternining the eeproaeh oi these
periods and of organizing the work of governmental and municipal agencies

in time to be of of'ectivo ;oreice. To this cud it is desirable that we
should have the largest poleible fund o' information and etatistical material regarding the movalents of businesa and trade; add these would be of
equal if not greater valve to cor2orate and erivate business as well.

The main useq:ulnese of this bill, tierefore, appears to me that
of advancing the discovery and printing or such material, and as such
think it would caamend itself very favorably to the goad sense of the
country.




Believe me, with very high regards,
Sincerely yours,

C

WILLIAM S. KENYON, IOWA. CHAIRMAN.
LIAM E. BORAH, IDAHO.
ANDRIEUS A. JONES. N. MEX.
KENNETH D. MC KELLAR, TENN.
MAS STERLING, S. DAK.
..AWRENCE C. PHIPPS. COLO.
DAVID I. WALSH, MASS.
FRANCIS E. WC RREN. WYO.
THADDEUS H. CARAWAY. ARK.
FRANK
'IQ, MINN.
SAMUEL

...RINI., CALIF.

9JCnite b 4T3 olatez Zevitcate

ROY H. RANKIN. CLERK.




COMMITTEE ON EDUCATION AND LABOR

ivashington,

.

Dec. 13, 1921.

Hon. Benjamin .Strong,

c/o Federal Reserve Bank,

Yew York City.

My dear Governor Strong:

I am glad to have yours of recent
date regarding Senate Bill #2749. It seems to me
we can work something out along the line suggested

by this bill.

Very truly yours,




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CHARLES E. TOWNSEND. MICH., CHAIRMAN.
THOMAS STERLING, S. OAK.
KENNETH MC KELLAR, TENN.
JOSEPH I. FRANCE. MO.
DAVID I. WALSH, MASS.
GEO. H. MOSES, N. H.
NATHANIEL B. DIAL, S. C.
W/
E. EDGE. N. J.
J. THOMAS HEFLIN. ALA.
,KINS. W. VA.
THOMAS E. WATSON. GA.
,WRENCE C. PHIPPS, COLO.
EDWIN S. BROUSSARD, LA.

J. W. HARREL, OKLA.

9JCni1eb Ztafez Zenctie,

TASKER L. ODDIE, NEV.
ROBERT N. STANFIELD, DREG.
FREDERICK J. BEAMAN, CLERK.
DONALD O. SUTHERLAND, ASST. CLERK.




COMMITTEE ON
POST OFFICES AND POST ROADS

December

14,

03\

1921.

Hon. Benj. Strong,
Federal Reserve Bank of New Zork,
New York City.

My dear Governor Strong:

Your letter of the 10th received and noted,
and Senator Kenyon's Bill will have careful consideration. Something along this line should be done.
Sincerely your friend,







ete-tavAt,,Q.A.

L

LAWRENCE C. PHIPPS,

COMMITTEES:
APPROPRIATIONS
EDUCATION AND LABOR
IRRIGATION AND RECLAMATION
POST OFFICES AND POST ROADS

COLORADO.

9Jenifeb Ziatez Zenate,

(Dip




.0`

WASHINGTON, D. C.
S4

December 15, 1921.

Mr. Benjamin
Benjamin

Strong,
Federal Reserve Bank,
New York City.

My Aear Sir:

In reply to your letter of December 10th,

will say I have duly

noted your recommendation of

Senate 2749 - introduced by Senator Kenyon, and
shall give this measure careful consideration
connection with my duties
tee on Education and

upon the

Senate Commit-

Labor.
ery truly,

F.

in

Q'S




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(NOTE NELSON. MINNESOTA. CHAIRMAN.
CHARLES A. CULBERSON. TEX.
LEES. OVERMAN. N. C.
JAM E. ,'"RAH. IDAHO.
JAMES A. REED. MO.
ALBERT B. 1
II NS, IOWA.
LE BARO
JOHN K. SHIELDS. TENN.
VOLT. R. I.
SLING, S. OAK.
THOMAS J. WALSH, MONT.
THOMAS
GEORGE W. NORRIS. NEBR.
RICHARD P. ERNST, KY.
SAMUEL M. SHORTRIDGE. CALIF.

fj- 'JAM P. DILLINGHAM, VT.
K B. GRANDE., CONN.

HENRY P. ASHURST, ARIZ.

lenifeb Zfafez Zenate,
,,

COMMITTEE ON THE JUDICIARY.

0N,

SIMON MICHEL ET. CLERK.
GEORGE L. TREAT. ASSISTANT CLERK.
CARL W. BORDSEN, ASSISTANT CLERK,




December 12, 1921.

Mr. Benjamin Strong,
Federal Reserve Bank,
New York City.

Dear Mr. Strong:

I have before me your esteemed letter
of December 10th wherein you speak of S. 2749, the bill

"To prepare for future cyclical periods of depression and
unemployment by systems of public works," introduced by
Senator Kenyon.

I shall give earnest thought to this measure,
the purpose of which is well set forth in the preamble.

We must be careful, however, lest we lodge too much power
in government or vest too much discretionary control in executive departments.

Very truly y

azi/yiz
SMS A




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THOMAS STERLINO, S. DAK., CHAIRMAN.
:RT U. CUMMINS, IOWA.
KENNETH MC KELLAR, TENN.
BARON C COLT, R. I.
JOSEPH E. RAMSDELL, LA,
L. FiEISLE.,
L. DEL.
JOSIAH 0. WOLCOTT, DEL.,
SAMUEI
J. THOMAS HEFLIN, ALA.
COLO.
STANFIELD, ORES.
FIOLM 0. BURSUM, N. MEX.
SOBERS

JENS M. OTTERNESS, CLERK.

:Unite?* Ztatez Zenate,
COMMITTEE ON CIVIL SERVICE.

December 13, 1921.

Hon. Benjamin Strong,
Federal Reserve Bank of New York,
New York City.

My dear Mr. Strong:

I note your letter of the 10th instant, relative to
the Kenyon bill, S. 2749.

I am interested in what you say and assure you tt
the bill shall have my careful attention when it comes
up for consideration in 3ommittee.




Yours very truly,

40103"

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Atte-

Cle..1774(7.

,P?

°JAMES W. WADSWORTH, J R
CHAIRMAN.

DEVENDORF,
CLERK.




'icnacZfatez Zencriel
COMMITTEE ON MILITARY AFFAIRS.

December 12th, 1921.

Benjamin Strong, Esq.,
Federal Reserve Bank,
New York City.
My dear M-. Strong:

Thank you for your letter of December 10th
regarding Senate Bill No. 2749 and for the information your
letter contains.

I have not been able to give a great

amount of study to this measure but your suggestions will
be of value when it comes up for consideration.

Sincerely yours,

GFH




GOVERNOR'S SEC Y.

1Ft V3

March 13, 1928.

My dear Jim:

Tide is quite a personal letter, doubtless contains no information
beyond what you already have , $.1ad Is simply to take the pi co of what I

would have said to you, had I not unfortunately missed you at the Capitol
when I called this week.

I have just returned from a trip to California, and spent a week
at Fort Eem frouston on the way beck with Frank Mc Coy.

While there, I saw

n good deal of Major-General Hines and Brigadier-General Malone.

They wore

good ...dough to let me accompany them during some of the practice tests in the

field.

I \root all over the, Post and had the good fortune to be Invited by

Generol Malone to receive a review of the Second Division.

All of this left

some impressions in ray mind that I am sending you for whet they are forth.

First of all is the splendid impression of the organi%ation and
men and their equi1.7ment.

T never met a finer lot, and they ar,:: a credit to

the service and to the country and, I believe, would shine in contrast, with
regular army of any country.
Ittb thi f.^

splendid imoression that I brought !e of the men, of

their enthusiasm for the service and the appearance of goner 1 canacity,

the appearance of tik., Post itself.

It is down at the heels.

The buildings

need paint and repair, the officers' residences are not in good condition,
roads need mending, and I must say it left a very disagreeable impression
which most uninformeei observers would attribute to the Army and its at.nairmf.mt
and fail to place the blame where44..beistegm:7-,eatirmehrTqr 1 feel certain it



Hon, Jamis II. Wadsworth,

2,

belongs, that is, with those having to do with Army appropriations,

There

i a no grate extravagance in which our Government could induge tirtn to let
the fixed equirment such eta buildings, roads, machinery and ewerything of

that sort, deteriorate, for want of msin.tenence.

the need for erecting

P.

whole new bui.lding.

A little p.a4.nt will

If

New York rut uo a fine building in which to eonduct

the country depended for Its defence in

ShVe

Bank of
bu8i.12ea u;.1..)n

financial aenee, ageinet panic and

montAtry a,nd financi al di aordr, nnd th,.n permi tted the bull ding to go to

pieces, the vaults to g-A, in disord...r, th loAs out of order so that they
could not operate, we would be excori atc,d. as criminally negligent.

And yet,

here le e branch of tly, Government of !-:,-quel or greeter Importance to the
defence of the country 1There,

it

,rt,

least judging superficially, acme part of

equirment le golrg to re,ck nd ruin for want of whet appears to be a

moderate exT,enditure uron maintenance.

It :sr surrrising thing that the

morale of the men does not detFri.oratn.. ao fast en their tools do - of COUratt,
refer to their quarters e.roeci F117..y.
This s quite a pnreonsi letter.

theso matt-re,

all, I

h1 oh you may

ery

I nver went to irtterfore

yere none of

1,1

m 8. CO tizt,rt like-mate hundred million others,

doing my little part as a

anc.1 oeracnally, If ,Ae

Army, I wou.c.1 lik- to see the execut,v-

business, but. after
p .ying Lex...,e and

rng to

en

-s,ch of th Govern-

mv,nt ra.5e that a, real Army, to remain good, noeda the bwcking nd surort
that ía mftnirtIsted

,;_ua.rtetra to- we in and suitable eQuipment to

work w1t1.

That its all that was in my mind, end I think I know you well enough

to write it quite frankly.




I am enclosing ?i epttro copy of the letter which

Hon. James W. Wadsworth.

,7113/28.

you can band to Dwight Davis if you feel that it is worth-while, but rlease
explain to him that it is wholly persorml.

It is not a kick, but just an

inspression as I got it tfter a /110ek on the ground with 64 lot of fn e fellows
who deserve better treatment.
With best reg.lrds,

Very sincerely yours,

Honorable tgli6bL Irdsworth,
United States E.esate,

Wasi,in,gton, D. C.

13E01




fit,en

JAMES W. WADSWORTH, JR.,

mi A A A r
Is

CHAIRMAN.

R. E. DEVENDORF,
CLERK.

9JCnifeb Zfafes Zenafe,
COMMITTEE ON MILITARY AFFAIRS.

March 16, 1926.

Benjamin Strong, Esq.,
Federal Reserve Bank of New York,
New York City, N. Y.
'

Dear Ben:
-

Thanks very much
March 13th.

foe'your

interesting letter of

While I have not been at Fort Sam Houston,

I can visualize the conditions there, owing to the fact
that I have visited a good many of our more important
Army posts.

1E

There is no doubt at all that the budget

the Congress has starved the Army in the matter of

barracks and quarters.

The cantonments built during the

war have become almost worthless.

The cost of keeping

them in repair is well nigh prohibitive.

It is true that

many of the permanent buildings are sadly in need of paint,
roof repairs and plumbing repairs.

I

against this condition during the last two or three years,

but have accomplished very little in the way of securing
adequate appropriations in the annual appropriation bill.
However, we can see daylight ahead.

The Congress has

passed and the President has signed a bill authorizing
the Secretary of War

to dispose of a large amount of

surplus real estate and several useless Army posts, with
a provision that the money coming in from the sales










shall be deposited in the Treasury as a special fund
to be used as a barracks and quarters construction fund.

Within a short time we shall have at least $20,000,000
available for such a purpose.
ready available.

About

6,000,000 is al-

I have already introduced in the Senate

the first bill authorizing the specific items of construction.

An item for Fort Sam HoustOn is included in the

list.

It will take four or five years to complete the

program, but it is good to know that at least we have
started in to correct this most disgraceful condition.
I am

gladget

General Paul Malone.

I re-

gard him as one of the finest officers in the Army, and
am not at all surprised to know that the Second Division is
in great shape.

If we only give our officers and men a

decent chance and reasonably generous support, we can
always count on having the finest regular force in the
world.

I agree with you that there is nothing quite as

extravagant or wasteful as an inefficient army.
Thanks a lot for writing me.

With best wishes,

Sincerely yours,

HSP




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94

FRANCIS E. WARREN
CHAIRMAN

UNITED STATES SENATE

COMMITTEE ON APPROPRIATIONS
WASHINGTON, D. C.

honorable 7,enjamir Strong,

Federal

December 15, 12,21.

eserve Bank,

Lew York,

r.

Y.

Dear Mr. Strong:

I thank you for your letter of 10th instant, commending
Senate bill Lo. 2749, referring to period of business depression,
appropriations, etc.

I have been interested in the subject, and rather favorably
impressea with the bill, and I value your suggestion concerning it,
coming as it does from "one who knows."
With kind, remembrances and many regards,
Yours faitli-rul

k/







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