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O

14

atter-

f
)

(;fri L.4441.614--,6,Let.,

944 /

ember 27, 1914.

M. Eldon pisbee,

40 Tall St.,
New Yo* City.

Sir:-'
have your letter of to(lay, In the matter of
?,24149.4qtraJund, tet!ier with the encloouree az ztated,
for which IRt.1 very mucL oblized.
1 will hand Mr. Varbur'd copy to him tomorrow
morninE.

Very truly yours,

!,lecretary.

JVC-RAH-27







(YY--/

November 30, 1914.

Ur. Eldon Bisbee*,

40 W*11 Street,
Pew York, /1.Y.

dear Mr. Bisbee:

have your letter of

Novelift 30, with its enclosures in reference to the
Cotton Loan Fund, for which please,accept my thanks;

us well as for your personal note.
Yours very truly.
Secretary.

0
RUSHMORE, BISBEE & STERN
ATTORNEYSAND COUNSELORS
40 WALL STREET, NEW YORK
CHAS. E. RUSHMOR E

ELDON BIS BEE
HENRY R.STERN
GEORGE N. HAM LIN

EMIL J VILLANYI
FRANK CA LLAHAN
CABLE ADDRESS
"A LLE RVIC K" N EW YORK

December 2, 1914.

EB/AR

Re Cotton Loan Fund.
Dear Mr. Strong:

I have been requested to send you copies of
papers affecting this matter as they are completed.

Accord-

ingly, I enclose herewith what I trust will be the final revise

of the statement of the plan, copy of consent of the Central
Committee to act and form of subscription agreement, which
am now sending to each member of 'the Cotton Loan Committee.
Very truly yours,

BENIAMIN STRONG,JR., ESQ.,
16, Wall Street,
New York City.




I.




Doomibor 3rd, 1914

Donx Sir:

zb

41

lodcp r-.oeirt o:f
wor oS1.1.oe,ra>or
'44, alo.losing cirou-

7ou:r

lrAr ontitled. "Ca. plated P1:21 for Cotton Levi

ThuI or vlbich plxvn

cl000pt

tl-oxika.

Tory trakr ryura,

Covaraor.

Eldon Bisbee, Esq.,
40 Wall Street,
New York City.




If

1Y)

)/r

October 5, 1922.

My dear Mr. Chadbourne:

I have invited a few of the directors and officers
of the Federal Reserve Bank of Few York to attend the Budget

dinner to General Charles G. Dares, at the WaldorfAstoria
Hotel, on Friday evening at suven o'clock, October 15, 1922.
The enclosed check for t50.00 is

to

cover twelve 'laces.

As absence in Washington next week will prevent

y attending the dinner, I have asked my colleague Mr. Case

to act as host in my stead.
Yours very truly,

Mr. Wr. M. Chadbourne,
340 Madison Ave.,
gew York City.
en C.
033.11M




CHADBOURNE, HUNT, JAECKEL & BROWN
165 BROADWAY

WILLIAM M.CHADBOURNE
RICHARD CARLEY HUNT
3ERT F.JAECKEL
WARD H.BROWN
CHARLESU.R.DAVIS
CABLE ADDRESS"BOURNECHAD"

NEW YORKJ

clune 28, 1927.

<
LL1

0

_Cr kij

1,t

Dear Mr. Strong:

Your letter und.er date of June 27th addressed to
Mr. Chadbourne has been received.
Mr. Chadbourne is
abroad. and. will return about the middle of September

at whieh time it will be brought to his attention.
Very truly yours,
Secretary

Benjamin Strong, Esq.,

33 Liberty Street,

New York City.

(4J(96ti

a/CA




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CHADBOURNE, HUNT, JAECKEL & BROWN
165 BROADWAY

WILLIAM M. CHADBOURNE
RICHARD CARLEY HUNT
ALBERT F. JAECKEL
,WARD H. BROWN
:ARLES J.R_DAVIS
CABLE ADDRESS BOU RN EC HAD"

NEWYORK

September 21, 1927.

4

Dear Mr. Strong:

Your note of June 27th which ared during my
absence abroad has just been brought to my attention.

Your note asked me to join in

4gning

a re solution to

be sent to the family of Mr.Aohn T. Pratt

I should

esteem it a privilege to;ign the resoluti on and thus

add my tribute to the memory of one of the most generous,
unselfish, self-effac ng and intelligently patriotic men
who ever lived.

Believe me
Very truly yours,
4

4

;))

Benjamin Strong, Esq.,
33 Liberty Street,
New York City.




.9206/44.,.

CHADBOURNE, HUNT, JAECKEL & BROWN
165 BROADWAY

WILLIAM M. CHADBOURNE
RICHARD CARLEY HUNT
ALBERT F. JAECKEL
OWARD H. BROWN
-IAR LES J. R.DAV IS

CABLE ADDRESS-BOURNECHAD"

NEWYORK

November 14, 1927.

Dear Mr. Strong:

Thanks for the copy of Mrs. Pratt's letter which
reached me

with

your note of November 10th.

Believe me
Sincerely yours,

(1U 61cotL
Benjamin Strong, Esq.,
33 Liberty Street,
New York City.







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ifr4-

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4

,




December 16, 1921.

My dear'Ir. (ottc.)n:

ite--iying to your letter of December 13, Mr. Strong

will:. be unable to attend the luncheon meeting of the board
of directors for 4-ednesday, December 21, at the Down Town

Association, owing to illness.
Yours very truly,

Secretary to. Mr. Strong.

Joseph P. Cotton, Esq.,
c/o national Budget Committee,

7 7,cst ath St.,
netv York, N.

GB.MM

Y.




,

(Lt,

6

2

4-

cl)
>4tz-

/

50

0 This is copy of letter

to

Mr. Davis, which was sent
to r Glass.




6.41i)posi

copy
January 19, 1923.
My dear Mr. Davis:

Enclosed is some further correspondence from r. Randolph.

Since he first wrote me I have been turning over in my mind the various

approaches to this subject from the standpoint of the one who has the responsibility
of making an argument before the Supreme Court.

I am not at all sure to what

extent the procedure in that Court imposes limitations upon the range over which
the arguments may extend.

If', however, the Court can entertain an s.rgumeriet of' so

eeneral a character as to include a review of' the relationships between credit

control, the function of issuing notes, of holding the reserves of a:alike, and of
managing the system of domestic payments and settleeents, I think a very strong

case could be built up as to the ',inescapable necessity for the establishment of'

-

some system of control of the domestic exchanges: uncier our ereset banking
system such as has developed after long years of experience in &igland, France an d
Germany, sn\d. such as is bound to develop in any country where this type of banking

is practice.
The points of approach to this are principally three:

First. The effect upon the fiscal opergtione of the United States
Government.

Second.

The need for elimination of the varioup barriers which existed

under the old system, which had the effect of preventing funds held in one part of
the country being promotly and economically available in other rafts of the

country either in the form of bank credit or of currency.
Third.

The enormous cost to the commerce of the country of a leas

scientific eystem than the present one.
was stressed in lay lettee to Mr. Randolph.



It was really only the latter point which

January 19, 1923.

Mr. John W. Davis.

2.

It hes also occurred to me that en argument along those broad lines,

which frankly would require considerable preparation and a mod deal of knowledge

of the rather intriaaie technicalities of domestic exchange, might find the other
side wholly uni-reeared to make an answer that would be effective before the Court.
Please de not think

that

recall to your memory something

I am intruding in this

thet I

metter.

I

am lad to

believe Macaulay once wrote, which I can

not quote verbatim, but the substance of which is about as follows:

"Parliaments a.ccept a greater responsibility for the remote and unexof the laws which they pass than they do for the immedinte

cted

objects sought to be accomplished by those laws."

This collection situation is a typical example of what is suggested by
These purely local and accidental disputes or mistakes or blunders

Macaulay.

might conceivably lead to the establishment of a line of decisions in our Courts,
the immediate eoneequences of which would pe.eeerito simply punish or restrain

offenders who have been carried away by mistaken zeal.
consequences of these (lecisions, however,

The ultimete or remote

might conceivably he to bring about a

return to a thoroughly unsound, dangerous and exeensive system which would eel'en
the foundations upon which the operations of the Reserve System and the Treasury
to a considermb'e extent

depend for

their success.

I beg to remain,

Yours vary truly,

Mr. John Y. Davis,
c/o Messrs. Stetson, Jennings

15 Broad St., New York City.
BE.31iti

Enc.




Russell,

July 10, 1924.

Jetr Mr. Davis:

most sincerely tad heartil7 congratulate you upon your nomination.

You will, I am sure, understand that it relieves my mind of N very greet

anxiety not only as to the interests of the country as a whole but selfishly
in some respects as to the special sork in *slob I am interested.
You will not mind my eendine, you q few very personal words in regard

to tatters in which we are both interested;

so much 3o in feet in my own

case that my decision as to how I shell vote in the next election will largely,
turn upon an appraisal of the prospects in thosp mAtere.
nave long believe that s mistaken understanding of our interest

in Furopean &Mire 'hits led ue into a eituation where we have no foreign

policies on subject5of reat importense to the country and that we may indeed

pay dearly for not nal,ino dealt with these matters ffirmstively rsther then
negatively.

I refer especially to come of the preseini. economic queetione

where the weight of this country's influence and wealth can Ls applied to
,romoting reconstruction which will benefit the world as a whole, will

greatly benefit our own people, and will be the particular if not the only
means of relief to the agricultural population of America, who are entitles
to every effort which our government can exert in legitimate and proper ways

to alleviate their present distress.




No. 2

July 10, 1924.

Sometime I hope I may have the pleasure of eeeing you and dis-

cussing especially this eubject.

In the meantime, allow me to expreEs

the relief and satisfaction that it has given me to find that a fliend snd
associate, for whom I have such great admiration and respect, has been so
honored by a great psrty and in s way which exhibite the confidence which

the country in ready to ,-ive him.
With cordial regards, believe me,
Sincerely yours,

Yr. John t. Davie,
15 Broad St.,
New York City.
BS.UM







JOHN W. DAVIS

August 2,1924.

Dear Mr. Strong:

I am taking the first op-

partunity after my return to thank you
for your cordial message of congratulation.

I know that you are sure of
my readiness to receive aftice from you at
any time that you care to give it and for
this reason I am grateful for your letter.

With the hope that I may
see you in the near future, I am,
Yours sincerely,

Benjamin Strong;
15 Nassau Street,
New York, N.Y.




-

406,

Is4

identical letter to

9 ClaTement 4v.

Prof. Samuel McCune Lindsay
Mr. lm. M. Chadbourne
Mr. Manny Strauss

165 Broadway

N.Y.C.
N.Y.C.

43 East 58th Strect "
Columbia University "

Dr. Nicolas Murray -Butler.

June 27, 19E7.

Ny deer Mr. Ni"iffi:

Nationel Pudget Committee
The original *embers of the
'fork lest week to discuss whether
hfld er impromptu meeting in Sew

John T. Pratt's family
it might not be eppropriete to send talir.
their eppretietion of the splendid service
porno Fort of evidence of

It

Wationel Budget Committee.
be perfoyned es chairmen of the
resolution of ehich the enclosed
reselted in the preperetion of E
to tisk if you mould be willing to
ir e copy. I em now eriting
others who are interested
eigr euch a reeolution, together vitt) the
desire to do N3 the resolution will be
in this sork, and if you do
engroeeed.
sent you for that purpose when it hee been

I be to rewein,
Very truly yours,

Mr. John T. Nricy

44 Nall Street, New York City.

eve
AeleueYeeeee-61




1460_40.

A/ti-tri-c

6 (fel

The men, who under the leadership of John T. Pratt, formed and

0

constituted the National Budget Committee, desire to record their deep
sorrow at his untimely death.
In 1919, when the Committee was organized, the number of those

who were able to envisage the impelling necessity for the adoption of a
budget system by our country was pitifully small;

but there was one

citizen who coupled a full vision of the great object to be achieved with
the courage and unselfishness to give his entire self to the accomplishment
of an end which then appeared far beyond the reach of actual attainment.
During the years of the operation of the Committee, Mr. Pratt
gave his thought and his energies without reserve.

There were times when

he carried on the Committee's work almost singlehandedly, and when it was
only his moral and material support that enabled the Committee to keep its
flag flying.

It is due in no small degree to the untiring efforts and

never failing idealism of Mr. Pratt that the United States today enjoy
the immeasurable benefits of an orderly system of budgeting, and for this
the country owes him a deep debt of gratitude.
It must be a consoling thought to those near and dear to him
that their grief is shared by his friends and admirers all over the United
States.

Mr. Pratt's old associates of the National Budget Committee
desire to express to his family their heartfelt sympathy;

they will,always

cherish the memory of their loyal friend and inspiring leader.







P')

7

AMERICAN COMMISSION
TO NEGOTIATE PEACE
MEMORANDUM

To

Strong

froIntir. Dulles.
August 26,1919.







TRaT81.4.TIO1 Btrfe.A5'
woomiamelomer ma*

1115AILLUZ, August 6, 1919

TIE EtBSIDZIN
OF TIE
GEFNAN DIMGA.TICE1

FROLI:

Broil von.2. 1iSIER

TO:

LionsictorlaRleUR

have the honor to send you as an annex six

provisional lists of provisions, forage, fertiliser, and
rem aiterials vtlich will be necessary to Germany in the

near future.
The German Government will, communicate later What

actual purchases in the open mareat are tedng eonsidered,

on credit; parch:Islas for which we will get into relation
with the Allied and Associated Governnerte by Virtue of

l'aticle 235 of the peace conditions.
I should be

at el if you would let me lasow *ether

among the goods figuring on the lists Germany might be
Au-Lashed with any

xaing from the countrie.,0 of thei'zatente,

and wieLt would probably be the quantities and quality, and

what the price.
Signed:

Von LFE.211121.

,-.S

Pb 1949

Provisions neoessary to Gereany during the next few. zontbe (to be furnished
ore fourth 084W =VW.

Meat. ....

980 0o50e8

Fats

9

0

120,000 torts

. 40o 04 800

Oereale (including riae and-dry vegetables) .

Milk. . OOOOOOOO

Potatoes. ..... .

*

6),000
.

600,000

6,000,000 ewes worth (gold)

0

O

cr,

quantities not yet determined

0.

Forage and fertilizers necessary to Gene/Any for the next jamaiket. (to be
furniehed one twelfth eaoh mouth).
Forage and

900,000 tons

fertilizer0owcakee

Bran..

.

.

*

600,000

*

00 a a

Indian oorn . .

1,200,000

.

Barley tif the entire quantity of barley eannot
be famished, it oar be made up by °orresponding gmentitiee of °ern).

..

Meat and fish flour

O

. 850,000

*

600,000

a

. . 600,U00

Various forage

Thefts phosphate.

.9

I

a

ft

..

ft

1,000,000

Orude Phosphate (the Thomas phOephate may be re

placed by crude phosphate in the
preportion of 2 to 1, ortvice-versai 1,500,000

LIST
Raw material necessary to Germeey fee the next Iaeemerthe.
Textile a:
Cotten
Base fully rid. d1

Wm., or aa much as 1/3
inferior to fally lua middling. and 1/3 superior to fully good middling, 26 to 26/30.

East India ootton

a

*... ***** .
In ease inferior cotters only aculd be delivered,

Nato cotton.




.

.

.

42,000. to

,

20,000 bales
20,000

,r/

details and eamples zould be desirable, in order to
examine the poesibility of using them, In no ease

is "linters" desirable.

A.

g

De 1949

Qualities of ootton thread.

2,000 tons

Base 20/20 and 36/42, going down to 16

4. thread..

1,000: "

Prop 60 and abave

Linen. ..... .

6,000

.

All qualities owing from Belgium, Ruosia and. Iruland. for
podium chains, principally gool zatters from Blanitz. If

this linen is not available, it Pay be replaoed. by oorres-

ponding quantities of Neapolitan.
Linen thread. . .
Only chain of nuntext 30/60

5,000 n

Hard fibers . .
=nails. or Sisal

do

s

r

1,500 n

S

0000000

Soft Hemp.

ft

500

Orude hepp fromBoloeme, Lapleu, the Indies or Russia1 a quarter of which maw be Strapaturs.

. 5,000

*

°atm:
Ontzde oakum of the best kinds
00003 Fibre. o

....

600

*

Silk,'
.
Of all sorts end origins

300 os

*

*

Bourette Shope

a

8chappegespinet

*

All origins can not be utilized WI).

Wool. .

.

.

e

.
.

..

350 "
350

e

15,000 0

0

Washed

Bpunwool and carded wool

2,000

#

All origins utilizable

Material for fancy weaving
20% cotton
St07 wool, of which:

7,000

40;i; for stockings

4C6 for thibet

20% for undurolothes

LIST

IV.

Raw material ma= neoessary to Germanys
Leather:

Skins of large animas.
2/3 heavy sans, 25 kilos or more (fresh hides)
1/3 under 25 kilos

rak.

2/3 E Idlos and over
1/3 under F kilos

Fresserfelle




7,900 tons

637,000 piece,.

(fresh hides)
.

.

p

200 toms

-

104 1%9

.

.

name Calm,

*
*
220 0113. Rai acme

pieooc

* bolo! 220 era.

ISO* is** oe

Stoop erd lart altiaL%

Lia..4 8

*** 0 0.8 10 *

goat Saw

4

5

.

* U. 4. .500,000
0

fi

616,000

4

a/3 Vamb skim 4 'aloe ard, over
1/5 Jric.1

.

taanaLpg tate/isle.

.,.

T.
Z
.11011..11110.wel......

now mterizt neoessarg to Gormarg wIthin t

xt11.104.Th'atia

1,034 (1A msti be ix ore) 401,000 tom;
ib,000
Tin plate
.
6,000 "
Tip
900 0
:7-1:111e1

Omer (ale:n=1:mA
)opper (ore)

Z44.000 II
24,04X) *

18,000 *

21113 (OM)

.ix,tinzr7

1,800. 0

.1teroLtry

ki00 "
7,a00 *

9,000 0

AIWA=
Dislaxtb.
81.10or

18 "

150 kW*

Platinum
.00

40.1111.....

zaterl4 rieoeesary
Misoellanook.st,




;Vude ribber
Lomas

arad.e give
Tin-pal/131e

/WW2

Owl

Gam le.orpor

Libostos

100,01(0 to

2b,000

Pare taming mtorl.sie,

Mete.le:

.

2,1;00 two
4,200 w.rletleits

4400
0,000 to
16.000 "

760 0

SOO "
150O *

AMERICAN COMMISSION

TO NEGOTIATE PEACE
MEMORANDUM

r
-:017RNOR STRONG:

Mr. Dulles was

sorry he was not here
when you called, end
hopes he may have the

pleasure of seeing you

on your return to Paris.







AMEPICAN COMMISSION
TO NEGOTIATE PEACE

August 22, 1919.

Benjamin Strong, Jr., Esq.,

Hotel, Ritz,
Paris.

My dear Mr. Strong:
I attach hereto a copy of cable from
Gunther at the Hague.
Gunther's plan?

nhat do you think of

Personally, I feel that such

a meeting should be held in the United States,
if the United States is to participate.

Ativ

,

-treolvt4
e3.!

,

SULLIVAN & CROMWELL

CABLE ADDR ESS:"LADYCOURT:

WM.NELSON CROMWELL.
ROYALL VICTOR.

HENRY H.PIERCE.
GEORGE H.SU LLIVAN.
EDWARD H.GREEN.
JOHN FOSTER DULLES.
WILBUR L.CU M MI NGS.
EUSTACE SELIGMAN.
WILLIAM F. CORLISS.
ALBERT S.R D LEY.
EMERY H.SYKES.
RALPH ROYALL.
PHILIP L. MILLER.

40

HORACE G. R EED.

REUBEN B.CR !SPELL.

ALFRED J AR ETZK I,J

LAURENCE A.CROSBY.
MAX SHOOP.

Benjamin Strong, Esq.,
33 Liberty Street,
New York,

,4497-1(

October 17, 102F:.

'

N. Y.

'near Mr. Strong:

As I mentioned to you over the telephone,

I hope that Dr. Schacht and you swillbe able to give me the
pleasure of dining or lunching with me during Dr. Schacht's
visit here, provided we can find a mutually agreeable date.
I would appreciate an opportunity of
courtesies which Dr. Schacht

has

reciprocating

the

shown me in Berlin.

Also,

if time permits, this would enable me to ask to meet Dr.
Schacht a few persons who, from my association with German
financing, I know would be interested in meeting him.




I am,




GOVERNOR'S OFFICE

RECEIVED

oc-r

EDF

1925

II

IT ri,:t!trA,




November 9, 1925.

My deer 4r. .Dullez
ht7e bed

memorandum before 1/15 ever since

Dr. Schacht arrived of your desire to entertain nim pt

luncheon or dinner, and he Whb anxious to Accept such an

invitetion if it were possible for him to find the time.

De hGe been obliged to make two trii)s to
Ushineton snd one, to Chico which heve occupied so many

evenings otherwise 6vailwble, that he fsars there will be

no chAtnce before he leaves.

the subject.

He may write you himeelf on

With kindest regsrds, believe me,
Sincerely yours,

J. Foster Dullea,

Meei,ra. Sullivan & Cromwell,

49 tall Street, New fork.
HS.I.S




ParisiuLEWARY

W,fia--t

JUN 1 9 1919

FREDERIC R.COUDERT.
LORENZO SEMPLE.
JOHN P Mu PRAY.

FEDERAL RESERVE BANK

414,.

PAUL FULLER, R.

CHARLES B. SAMUELS.
HOWARD THAYER KINGSBURY.
JAMES BARCLAY.
JAMES E.HOPKINS.
CHARLES A.CONLON.

JUN /

June 17th, 1919,

410

Hon, Benjamin Strong,
Federal Reserve Bank,

#15 Nassau st,, City,

Deal' Mr Strong,

Your letter of the 10th arrived
and I now learn from your secretary
that yoWhave found a satisfactory person to accompany
you to France, If it should turn out otherwise, please
during my absence

,

let:me know, and I will do what I can to be of assistance.
Yours very truly,
PF,Jr:M1







LIBRARY
JUN

19

1919

June 18, 1929.

FEDERAL

ESERVE

Dear Mr. Puller:
Thank you very much for your kind note of the
seventeenth.

I have been fortunate enough to secure

just the mull needed to go abroad with me, but appreciate,

nevertheless, your

assistance.
Very truly yours,

generous offer of

Esq.,
Coudert Brothers,
2 Rector :Street, New York,

1:1V/L3B

BANK .




L.,41.,e1V

r,
,g7
40)

COL. HENRY L. STIMSON, Treasurer,
N'

.01 Budget Committee,

3Lttadison Avenue,

New ra, N. Y.
Dear Sir:

(---) Please send me

tickets at $3.50 per ticket for the

National Budget Committee dinner at the Hotel Astor on April
28th, 1922. I enclose herewith my check for $
Name
Address
 The names


of my guests appear on the back of this card.

(7,
RRONSON WINTHROP
HENRY L. STIMSON
ALBERT W. PUTNAM
GEORGE ROBERTS
FRANCIS L. ROBB! NS, JR.
ALLEN T. KLOTS
G. HERBERT SEMLER

WASHINGTON OFFICE
NO. 800 SOUTHERN BUILDING
I5D AND H STREETS, N. W.
WASHINGTON, D. C.

LAW OFFICES OF

WINTHROP, STIMSON, PUTNAM a ROBERTS
MUTUAL LIFE BUILDINGS, NO.32 LIBERTY STREET

FREDERICK W. STELLE
PERCY W. CRANE
JAMES N. DUNLOP
F BAYARD RIVES
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FRED H. LUND, JR.
ARTHUR E. PETTIT
WALTER P. PFEIFFER
S. LEROY FRENCH
HAMILTON HADLEY
ELBRIDGE STRATTON
JAMES W. HUSTEO, JR. ,




NEW YORK CITY
CABLE ADDRESS -WI NSTIM-

NEW YORK CITY

June 29, 1927.

Benjamin Strong, Esc.,

33 Liberty Street,

New York, N. Y.
My dear Mr

Str ong

I shall of course be very glad to
sign the resolution which is, to be sent to Mr.
pratti s family.
Very sin erely yours,

HLS/N

3-1"

New YORK,

Jul? 26,1927

NATIONAL BUDg,3T COMMITTEE
Flines&Rotansim
ngrossers a tii/

Blues ant) llottinsort

Rittminatar,s.
IlcuiYork-

20613raa.bnuty

206 BROADWAY

TELEPHONE / 7406 CORTLANDT
7407I

TERMS. NET
ORDER NUMBER

41955

To memorial to John T.Pratt

DETACH AND RETURN WITH YOUR CHECKCANCELLED CHECK IS RECEIPT

41955

National Budget Committee

t-

RESOLUTIONS ENGROSSED

MARRIAGE CERTIFICATES
BOOK PLATES, COAT-OF-ARMS




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AMES

DIPLOMAS, CATALOGUE AND

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ROLLINSON

206 BROADWAY, NEW YORK







STATEMENT OF PURPOSE OF THE COMMITTEE ON AMERICAN JAPANESE RELATIONS

peace of the Pacific and for limiting
naval building programs, the relief

contacts and intimacy
GROWING have brought to light
of relations
questions of exceeding difficulty resulting in ominous states of mind and feeling. They are questions concerning
the significance of race difference, immigration, assimilation and naturalization, treaty rights, population and territory, relations with China, economic
competition and national policies. On
all these matters there is much misunderstanding in both countries and no
little positive misinformation. Unethical practices also on both sides of the
Pacific aggravate the situation. These

funds sent by America for sufferers in

questions manifestly require careful,

United States and Japan have
for two generations maintained
unique relations of mutual consideration and good-will. The earliest treaty
pledged "perfect, permanent and universal peace, and a sincere and cordial
amity between the United States and

THE

Japan and between their peoples respectively without exception of persons

and places." The return by the United
States to Japan of the Shimonoseki Indemnity (1883), the generous gift by
Japan to San Francisco for the relief

of suffering at the time of the great
earthquake and fire (1906), the mutual
agreements by the United States, Japan
and other powers for maintaining the

Japan by earthquake and fire, and
other acts on both sides have throughout the decades manifested the spirit
and fulfilled the mutual pledge of that
first treaty.




broadminded and impartial consideration. They cannot be stated, much less
can they be solved by offhand, popular
dogmatism.

of irritation must not be

CAUSES work out their inevitably
left to

Committee on American Jap-

THIS Relations has been formed in
anese

should be promptly taken in both coun-

order to attain these ends, in so far as
their attainment depends on the people
and Government of the United States.
We rely on enlightened leadership in
Japan to take corresponding action in
that land. International good-will between America and Japan depends on
what America and Japan both do. We

tries to provide the people with the

both must practice the inescapable prin-

needed information, -and to secure the

ciples of right international relations.
Deeds are what count, not words.

disastrous consequences.

Courageous

and loyal patriots in America and in
Japan must face the facts. They must
insist that all matters of difficulty

can and should be settled by reason,
conference and

conciliation.

Steps

necessary changes in the national mind.

"Sincere and cordial amity" must be
maintained, misunderstandings removed,

wise policies adopted and appropriate
legislation enacted in both countries.

For the attainment of the ends thus
defined, this Committee adopts the following statement of objects, and urges
its wide endorsement by American citizens and organizations.

PROGRAM
2. That on t: part of the

Cultivation of an informed and
rational public opinion in the United
States in regard to Japan, inspired by
a friendly spirit and sympathetic un-

United States privileges

of citizenship be g

quate federal legislation for
the protection of aliens and
for the enforcement of their

the problems involved.

of friendly relations, both for

Gentlemen's Agreement, providing

1. That on the part of Japan
the further issue of passports to those coming to
the United States for per-

as

ARTHUR J. BROWN
JOHN BATES CLARK
STEPHEN P. DUGGAN
MRS. J. MALCOLM FORBES

recognition,

JAMES H. FRANKLIN

to

zenship of children of Japanese parentage born in the
(f)

United States.
To correspond with societies

and persons in Japan who

believe in settling international difficulties by conference
and mutual consideration

and in accordance with our
existing arbitration treaty
with Japan, and to co-operate with them in urging both
countries to adopt policies,
make treaties and enact laws

WILLIAM I. HAVEN
JAMES G. McDoNALD
MRS. WILLIAM F. MCDOWELL

NEHEMIAH BOYNTON

National Committee
on

American Japanese
Relations

PAUL MONROE
FRANK MASON NORTH

GEORGE A. PLIMPTON
LINDSAY RUSSELL
FENNELL P. TURNER

HONORARY MEMBERS

abolish the evils of dual citi-

these nations and the government and people of China and

United States and Japan, to
take the place of the present

F. S. BRocKmAN

of expatriation, so

their own sake and for their
effect on American-Japanese
friendship, between each of

c) To advocate the adoption of
a new treaty between the

Treasurer
Secretary
CHARLES H. LEV.MORE
Secretary
SIDNEY L. GuLicK, Executive Secretary
HENRY A. ATKINSON

either by treaty or by legislation in Japan, of the right

(b) To advocate the cultivation

Chairman
V;ce-Chairman

GEO. W. WICKERSHAM
HAMILTON HOLT
EDWIN G. MERRILL
LINLEY V. GORDON

Presidents Harrison, McKinley, Roosevelt and Taft.
To urge the

and scientific discussions of

Asiatic mainland.

MEMBERS

treaty rights, as urged by

the United States by frank

the other countries of the

ed

to all who persodally
qualify.
To urge the enactment of ade-

derstanding of her needs and problems.
A square deal for Japanese in the
United States.
Specifically we propose:
( a) To oppose actively the jingo,
anti-Japanese agitation in

NATIOr e, COMMITTEE ON

AMERICAN JAPANESE RELATIONS

UMW

(Partial List)
JANE ADDAMS

JAMES R. ANGELL
GEORGE GORDON BATTLE

PERCIVAL P. BAXTER

JOHN GRIER HIBBEN
OTTO H. KAHN
HENRY CHURCHILL KING
SAMUEL MATH.

FRANKLIN Q. BROWN
LUTHER BURBANK
THOMAS BURKE
M. L. BURTON

SHAILER MATHEWS

CARRIE CHAPMAN CATT

JOHN R. Morr

FRANCIS E. CLARK
GEORGE W. COLEMAN
SEYMOUR L. CROMWELL
R. FULTON CUTTING
HENRY W. DE FOREST
ROBERT W. DE FOREST
CLEVELAND H. DODGE

1924

E. Y. MuLLINs

FRANCIS J. MCCONNELL
WILLIAM F. MCDOWELL
MRS. Wm. A. MONTGOMERY

MRS. HENRY W. PEARony
FRANCIS G. PEABODY

MRS. P.CY V. PENNYBACKER
CLARENCE POE
JULIUS ROSENWALD

GEORGE EASTMAN

CHESTER H. ROWELL
CHARLES M. SCHWAB

IJIVINGSTON FARIUND

ROBERT E. SPE.

bearing on international rela-

W. H. P. FAUNCE
ELBERT H. G.Y

manent residence be rigid-

tions, based on justice and

ly restricted;

good-will.

HowAno HEINZ

W. C. SPROUL
FRANK A. VANDERLIP
WILLIAM ALLEN WHITE
STEPHEN S. WISE

All communications and cheeks should be sent to SIDNEY L. GULICK, Executive Secretary, 287 Fourth Ave., New York City




FRANKLIN H. GIDDINGS

287 Fourth Avenue
New York




VIII

twhat can be done?
Support Secretary Hughes
.
in his opposition to the passage of
-ineligible alien- clause in the
ti
Johnson Immigration Bill.
2. Urge that the United States
move for
A new -Gentlemen's Agreement-, or
A new treaty, or
A commission appointed by
the United States Government to confer fully with a

corresponding

commission

to be appointed by the Japanese Government.

Questions about
American Japanese
Relations
ASI

Has the Immigration Bill introduced into Congress by Representative Albert Johnson (H.R.6540) an
thing to do with California's recent
legislation which prohibits an "alien
ineligible to citizenship" from owning
or leasing land, or from sharing in the
profits of land cultivation?
No, the Johnson Bill is a Federal
immigration bill. No state has the

constitutional right to deal with immigration.
II

What is the clause in the Johnson Immigration Bill affecting Japan?
It is a clause which says that any
For further information, NEW FACTORS IN
AMERICAN JAPANESE RELATIONSA CONSTRUCTIVE PROPOSAL, may be obtained from
the National Committee on American Japanese
Relations, 287 Fourth Ave., New York.

-alien ineligible to citizenship- may
not enter the United States. There
are certain exceptions, such as students going to an accredited college,
teachers, professors and
former residents in the United States.
religious




III

VI

Why is this discriminatory
against Japanese?
Because Japanese have been declared -ineligible to citizenship."

g of
Does Japan wish to send
thousands of her citizens to the

IV

clared that it is not asking immigration privileges. It stands ready to restrict immigration still further.

Why does Secretary Hughes and

why do many Americans object to
this clause?
Because it abrogates by mere act
of Congress, without conference and

consultation with the Japanese Government, certain clauses of the Treaty
of 1 91 1, and also the -Gentlemen's

Agreement" through which, since
1908, Japan has stopped labor immigration of Japanese to this country.
V

Has Japan kept the "Gentlemen's Agreement"?
Statistics prove that she has. But
Japanese leaders have frequently
stated that, if the terms of the present
Gentlemen's Agreement are not satis-

factory, Japan is willing to change
them on consultation.

United States to overflow this cour'-y
and create another "race problem'

No, the Government has de-

VII

What does Japan ask?
She asks that there shall be no
discriminatory legislation in America
directed against those of her people
lawfully here.

She asks equality of treatment
with other nations.
She asks that those of her people
who have already come and are law-

fully here shall be given the same
treatment, civil rights and opportunity

that are given to immigrants from
other lands.
She asks for conference between

her Government and that of the
United States.

WHITE

CAS 137

COURSE LLORS -AT -LAW
J.DU PRATT WHITE
GEORGE B.CASE

CHARLES J.FAY

ROBERTS WALKER
http://fraser.stlouisfed.org/
JOSEPH M.HARTFIELO
Federal Reserve Bank of St. Louis

14 WALL TIZE RIO
NEW YORK CITY

RESOLUTION

re

THE TREATY BETWEEN THE UNITED STATES AND JAPAN

and
,

THE "GENTLEMEN'S AGREEMENT"

WHEREAS,

The Proposal in the immigration bill (H.R. 6540) to deny
to aliens "ineligible to citizenship" the privilege of
contraadmittance to the United States
Sec. 12 (b)
venes the existing treaty with Japan and abrogates the
"Gentlemen's Agreement", without conference with the
Japanese Government; and

RHEREAS,

Acts of Congress overriding treaties and international
agreements, while constitutional, in effect invade the
function of the treaty-making power and are unnecessarily
offensive to nations affected thereby, tending as they do
to the creation of unfriendly feelings and to the disturbance of stable international conditions; therefore

RESOLVED,

That we respectfully urge the Senate and House of Representatives to eliminate said Proposal
Sec. 12 (b)
from said bill now under consideration (H.R. 6540) before
passing it.

RESOLVED,

That the Chairman be requested to send copies of this
resolution to each member of the Senate and House of
Representatives with a suitable covering letter.




NATIONAL COMMITTEE

CkNowLEDGED

ON

LIAR 3

AMERICAN JAPANESE RELATIONS n
Chairman
Geo. W. Wickersham
Vice-Chairman
Hamilton Holt

Treasurer
Edwin G. Merrill

MEMBERS
Henry A. Atkinson
Nehemiah Boynton
F. S. Brockman
Arthur J. Brown
John Bates Clark

Stephen P. Duggan
Mrs. J. Malcolm Forbes

William I. Haven
James G. McDonald

Paul Monroe
Frank Mason North
George A. Plimpton
Lindsay Russell
Fennell P. Turner

Mrs. William F. McDowell

Mr. Benjamin Strong,
HONORARY MEMBERS

Jane Addams
James R. Angell
George Gordon Battle
Luther Burbank
Thomas Burke
Carrie Chapman Catt
Francis E. Clark
Seymour L. Cromwell
R. Fulton Cutting
Cleveland H. Dodge
George Eastman

W. H. P. Faunce
Elbert H. Gary
Franklin H. Giddings
John Grier Hibben
Otto H. Kahn
Henry Churchill King
Samuel Mather
Shailer Mathews
Francis J. McConnell
William F. McDowell

1924

Secretaries
Linley V. Gordon
Charles H. Levermore

Sidney L. Gulick
Executive Secretary
Phone Gramercy 3475

287 FOURTH AVE, NEW YORK.

New York City.

February 29, 1924.

My dear Mr. Strong:

May we have your cooperation in seeking to secure more
satisfactory relations between America and Japan along the lines
stated in the enclosed folder?

Since we mailed to President Coolidge and Secretary
Hughes, and to all members of Congress, copies of the enclosed resolution and covering letter, Secretary Hughes himself has expressed
forcibly in a letter to the Honorable Albert Johnson his opposition
to the proposal of the Johnson immigration bill to deny admission

to the United States of "aliens ineligible for citizenship".

The immediate need is for letters to members of the Senate
and House of Representatives protesting against the proposed legislation. Anti-Japanese forces are now massing their support behind the
Johnson bill. Those who support Mr. Hughes and desire that America
shall keep faith with Japan should speak out strongly in support of

Mrs. Wm. A. Montgomery the position taken by Secretary Hughes.
John R. Mott
E. Y. Mullins
Alton B. Parker
Francis G. Peabody
Mrs. Henry W. Peabody

In order to carry forward effectively our policy and our
program until it is accomplished, we feel the need of the moral

support of many men and women of influence in all sections of our
Mrs. Percy V. PennybackeiCOUntry, and it is for this purpose that we are forming a Committee
Clarence Poe
of One Thousand.
William C. Redfield
Kermit Roosevelt
Julius Rosenwald
Chester H. Rowell
Mortimer L. Schiff
Charles M. Schwab
Robert E. Speer

Julian Street
Henry W. Taft
Frank A. Vanderlip
William Allen White
Charles D. Williams
Stephen S. Wise




May we have the honor of including your name on this Com-

And will you kindly suggest names of influential leaders
who might be interested in the purposes of this Committee?

mittee?

Respectful

sincerely yours

Chairman.

We shall be glad to send you, upon request, copies of three
P. S.
important pamphlets presenting the facts in regard to Japanese in
the United States. They are "Should Congress Enact Special Legislation Affecting Japanese", "New Factors in American Japanese Relations", and "Japanese in Hawodi".

Jame

Dear Sir:

Following the instruction of the Executive Committee I have the honor
to enclose a copy of the resolution passed at its recent meeting, February 2,
1924.

Permit me to express the hope that the members of the Senate and the
House of Representatives will take this request into serious consideration.
Were there no other possible way of dealing with the situation the case
would be different. The proper way by which to change a treaty or an international agreement, it would seem to me, is by treaty or agreement negotiated
through the Department of State.
If Congress deems. such change advisable, a
request made to the Executive will without doubt bring such action.
Responsible Japanese have repeatedly declared that, if the "Gentlemen's
Agreement" is not satisfactory, the Japanese Government will gladly reconsider
the whole matter and make some new arrangement.
In the face of such assurances from Japan of desire to maintain neighborly relations with us, and in view of their earnest desire that the United
States should not pass discriminatory and inevitably humiliating legislation
aimed at Japan, the passage of the proposed act by Congress would certainly be
resented by Japan as a gratuitous act of unfriendly character.
The need for the proposed measure is far from obvious when we consider
the facts in the case. The statistics of admittances and departures of alien
Japanese, published by the Commissioner General of Immigration, show that since
the "Gentlemen's Agreement" went into effect (1909-1923) 22,737 more males left
the United States (including Hawaii) than entered; and that the net increase
by immigration of Japanese in the continental United States during these fifteen years has been 8,681, consisting of woman and children.
It is evident that the Japanese Government has been administering the
"Gentlemen's Agreement" with careful fidelity. Naturally the proposed measure
would convey an implication to the contrary which a proud and sensitive nation
would resent.
The statement that the proposed measure (H.R. 6540-b) is not particularly aimed at the Japanese, for it concerns all peoples "ineligible for citizenship", is too specious to need extended reply. It is enough to point out
that practically all such peoples are now excluded by existing laws, the
Chinese, by name, and the Hindus, Thibetans, Dravidians, and many other peoples
of Asia and Polynesia by definitions of latitude and longitude. The real purpose of the proposed measure is the abrogation of the "Gentlemen's Agreement"
with Japan.
If there is any sound reason for such Congressional action I have not
seen it stated publicly.

Earnestly hoping that the proposed section of the immigration bill is
duly deleted before the bill is passed, I am




Respectfully yours,

GEORGE W. WICKERSHAM
Chairman.

March Z, 324.

My dear Mr. Wickersham:

I have just received the circular letter from the National Committee
on Americat:ilypanese Relations, and am replying at once to exp:ese my sympathy

with the terms of the resolution which hocompanied the letter, and to express
the hope that it may be effective in defeating proposals in Congress which
cannot fail to impair the good fellowship which should exist between this
country and japan.

If it will be of any service to add my name to the com-

mittee, I will be glad to have you do so.
The definite and unequivocal position which President Coolidge

habitually takes on all public questions leads me to elagreut that it might 11.4.6
a
Ait#2,07-CY

effective to place in his hands the supporting argument in regard to irlifproposed immigration law, and attach to it the names of those who feel as you
and I do.
Yours very truly,

Mr. George t. Wickersham,

c/o Messrs. Cadwalader, raft it
Wickershem,

40 Wall St., New York City.
BSAN




NATIONAL COMMITTEE
ON

AMERICAN JAPANESE RELATIONS
EXECUTIVE COMMITTEE

Chairman
Geo. W. Wickersham
Vice-Chairman
Hamilton Holt
Treasurer
Edwin G. Merrill

Henry A. Atkinson
Nehemiah Boynton
F. S. Brockman
Arthur J. Brown
John Bates Clark

Stephen P. Duggan
Mrs. J. Malcolm Forbes
James H. Franklin
William I. Haven
James G. McDonald
Mrs. William F. McDowell

Paul Monroe
Frank Mason North
George A. Plimpton
Lindsay Russell
Fennell P. Turner

Secretaries
Linley V. Gordon
Charles H. Levermore

Sidney L. Gulick
Executive Secretary
Phone Gramercy 3475

287 FOURTH AVE., NEW YORK.
HONORARY MEMBERS

(Partial List)
Jane Addams
James R. Angell
George Gordon Battle
Luther Burbank
Thomas Burke
Carrie Chapman Catt
Francis E. Clark
Seymour L. Cromwell
R. Fulton Cutting
Cleveland H. Dodge
George Eastman
Charles W. Eliot
W. H. P. Faunce
Elbert H. Gary
Franklin H. Giddings
John Grier Hibben
David Starr Jordan
Otto H. Kahn
Henry Churchill King
Thomas W. Lamont
Samuel Mather
Shailer Mathews
Francis J. McConnell
William F. McDowell
Mrs. Wm. A. Montgomery

May 12, 1921
Mr. Benjamin Strong,
New York City.
My dear Mr. Strong:
The recent precipitate
&Ition
of the Senate
drastic and humiliating provisio0 in the immigration bill, so far
as it bears upon Japan, has dong serious damage to the cause of
goodwill and mutual considera,ion between that country and our own.
if

Whatever adjustmerfts President Coolidge may secure,
friends of fair and friendly reAtions have an urgently important
task ahead. There is pretsing need of educating the responsible
citizenry of the United/States in regard to the facts and in support of constructive pftgrams for the solution of the problems, due
to the presence on our Pacific Coast of about a hundred thousand
Japanese. The activities of anti-Japanese agitators and the atitude of the editOrial writers of our sensational press constitute
a serious menace/ They bid fair to give trouble for at least a
,-

decade to come./

John R. Mott
/1
E. Y. Mullins
In View of the situation that has taken such an unforAlton B. Parker
Francis G. Peabody
tunate turn during the past few weeks, ee feet it important to
Mrs. Henry W. Peabody strengthenttind enlarge the work of this Committee.
It has been
Mrs. Percy V. Pennybackerd ecided ti form a Committee of One Thousand outstanding American
Clarence Poe
citizens/In every part of our country
composed exclusively of
William C. Redfield
America' citizens - and to enter upon a plan of constructive educaKermit Roosevelt
tion Wonder to make widely kncwn the essential facts in regard to
Julius Rosenwald
Japane'Se in America and the laws dealing with them, and al-o to proChester H. Rowell
Mortimer L. Schiff
moteAide acceptance of concrete proposals in line with the stateCharles M. Schwab
ment' of our purpose and program, as embodied in the enclosed folder.
Edwin R. Seligman
Robert E. Speer
We have appreciated hIghly your co-operation in permit/
Julian Street
ting the use of :our name as one of our Honorar;; Members. In order
Benjamin Strong
ilto make cur work more effective, may we ask three favors:
Henry W. Taft
Frank A. Vanderlip
Paul M. Warburg
let.
Does the enclosed Statement of Purpose and Program
William Allen White
express in substance what friends of justice and goodwill should
Stephen S. Wise
stand for in American relations vith Japan? Your suggestions or

criticisms will be highly appreciated.


2nd.
May we place your name on the list of our regular membership?
We feel that advantage will be gained if the entire membership is on the same

basis.
3rd. Will you kindly suggest the names of men and women of influence
who, you think, might be glad to have a part in this movement for promoting
right and' friendlyrelations with Japan.




Again thanking you for your co-operation in the past, I am

ire,

Very sincere}

/

7/
Chairman.

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February 27, 1918.
My dear Adrian;

In asxing me to dictate the sustance of what I stated last Friday
to Mr. Root, you have imposed upon me a considerable undertaicing which, in

fact, I have not the time just now to carry out in full.
This letter will supplement the article which I sent you.
It is my belief that the country faces the choice of two courses.
The first is to rely upon educating 100,000000 people by strictly educational methods to practice thrift by denying themselves the purchase of luxuries,
and in fact, anything and everything that they can set along without during
the period of the war, so that materials and labor may be released from supplying those things and in place thereof be employed in the production of

things essential to the prosecution of the war.

The alternative is to aban-

don the educational means of accomplishing this and actually exercise control by legal methods over production and consumption in such a way as to

produce the same results in a much shorter time.

Failure to produce the result desired; that is, reduce consumption, means that the materials required for the war, both by this country
and by our allies, must be produced as an addition to the normal production
of the country in peace times, therebn causing a tremendous expansion of

credit, a shortage of labor and materials, constantly rising prices for
labor and materials, a much more expensive war, domestic discontent with

living hardships, and a mortgage upon the production of future nnmerations

that may prove to be a staggering load. The goods now produced and consumed

in war, without the germ of reproduction in them, will be paid for partly by
taxes and partly bn bonds sold to those who have incomes in excess of their



Adrian Larkin, Zsq.,

*2

present needs.

2/27(18.

Those who buy the bonds must some day have their loans repaid

by taxes collected from others in the future.

The loans are mortgages upon

the productive efforts of all the people.
Assuming, therefore, that either by

educational or compulsory methods

consumption must be curtailed, what means can be employed with safety and

with-:

out disorganizing the country's affairs to get prompt results?
This is too big a question to answer offhand and without getting advice of men familiar with many branches of our business and financial life.
My own ideas are rather crude, but may be expressed roughly as follows:
First, as to

credit:

Our banks should be

organized and

their officers

educated, or in time required, to discriminate in the loans they make to their

customers so that no credit will be wasted for purposes not essential to the
war.

If the 25,000 banks of the country could each curtail their

bank would be

10,000. on the average, the loan and deposit accounts of the

reduced by

42,500,000.

to the money centers.

The

bank reserves woUld

Interest

increase.

rates would be reduced.

credit

Money would flow
The consumption of

material and employment of labor which would have resulted from

granting these

loans would be saved, with, of course, some influence upon the prices both of

materials and of labor.

Second, as to raw materials essential to war industries, feeding and
clotlking

the people and other industries

contributory

thereto:

The Govern-

ment's policy in fixing prices operate6 either to restrain production

divert
tion in

the application

or to

of labor on farms and elsewhere to changing the produc-

form so as to escape the operation of the price fixing policy.

A

farmer who may have ten or twelve ways of empapying his soil or of applying
his labor to it, might find

wheat

much less profitable at $2.20 than'some

other product of his farm, which miglit even involve feeding his

wheat to stock.

Unless all economic laws can be suspended or repealed by Act of Congress

I feel

that it would be 'sounder to fix maximum prices for luxakies and let the prices




2/27/18.

_drian Larkin, Esq.,

present needs.

Those who buy the bonds must some day have their loans repaid
The loans are mortgages upon

bs taxes collected from others in the future.

the productive efforts of all the people.
Assuming, therefore, that either by educational or compulsory methods
consumption must be curtailed, what means can be employed with safepy and with-

out disorganizing the country's affairs to get prompt results?
This is too big a question to answer offhand and without getting advice of men familiar with many branches of our business and financial life.
My awn ideas are rather

educated,

crude, but may be expressed roughly as follows:

First, as to credit: Our banks should be organized and their officers
or in time required, to discriminate in the loans they make to their

customers so that no credit will be wasted for purposes not essential to the

var.

If the 25,000 banks of the country could each curtail

410,000. on

the average, the loan and deposit accounts of

reduced by 42,800,000.
to the money centers.

The bank reserves woUld increase.

Interest rates would be

reduced.

their credit

the bank would be

Money would flow
The

consumption of

material and employment of labor which would have resulted from granting these
loans would be saved, with, o

course, some influence upon the

prices both of

materials and of labor.

Second, as to raw materials essential

to war industries, feeding and

clotAing the people and other industries contributory

thereto:

The Govern-

ment's policy in fixing prices operates either to restrain production or to
divert the application of labor on farms and elsewhere to changing the production in form so as to escape the operation of the price fixing policy.

A

farmer who may have ten or twelve ways of emplpying his soil or of applying

his labor to it, might find wheat

much less profitable at 42.20 thasesome

other product of his farm, which migh even

involve feeding his wheat to stock.

Unless all economic laws can be suspended or repealed
that it would be sounder to



by Act of Congress

fix maximum prices for luxukies and let

feel

the prices
sess____

#5

Adrian Larkin, Esq.,

2/27/16.

of essential raw materials that enter into the production of these luxuries

find their natural level.

The consequence would be the cideniin; of the

margin of profit on the production of essential raw materials and the dimin-

ishing of the rrgiri of profit to the produoer of non-essentials, which
mlighg, in fact, release labor and material and plants for Government use.

This may not be the way to deal with the price quest lea, but it illustrates
the ineffectiveness of price fixing for some of our production and no control

of other thins.
Third:

;Ilether consumption io restrained either by control of credit,

control of raw matorials, or by any other means, one oonaeouenco it to throw
labor out of emPloyment and make factories iele.

Such a policy brings discon-

tent and might, In fact, make the war unpopular.

To deal with this makes it

necessary for our Government to organise the industries of the country for war

work just an rapidly as they are released from other work as a result of some
uniform policy of restraint of consumption.

To illustrate this point, let us

assume the case of a shoe anufacturer whose normal production is 30,000 pairs
of shoes per month.

The Government, needing shoes very badly, asks him to

increase his output so that he can deliver 90,000 pairs of shoes a month to the
army.

This manufacturer finds it necessary to add to his plant, to vastly

increase his purchase of raw material, to buy mom machinery, to attract more

labor to his plant and train it, to furnish housing for it.

or is that all.

It becomes necessary to provide expanded hank facilities; to enlarge trade and

transit facilities in the town where his plant is located, and generally to
reorganize the community to take care of an establishmaat three times as large
as normally.

How mudh better it would be for the Government to take Oiter some

existing plants, even located disadvantageously in some respects, and siold all
of this disorganisation. If a plant manufacturing some other article could be
converted into a shoe factory to produce 60,000 pairs of shoes a month, buildings



Adrian Larkin,

44

q.,

2/27/18.

could be used; existing power plants could ue used; labor already located there
could be trained; banking, mercantile and transportation facilities will be
adequate and no disorganization would result.

The sole requirement would be

to have the original manufacturer furnish supervision and a nucleus of men to

train

existing labor in the reorganized plant, and new machinery would beed.

to be pur7haeed and poseibly the plant somewhat rearranged for its new produc-

tion.

The one notable exception necessary for suc a program is ship-bui1ding,

whore absolutely new plants must be built at tide water, and, of course, labor
attracted there to operate them. 3xieting plants employed for other purposes
cannot 'easily be eonverted into ship yards.
Fourthl

Taxation for

just an Important a part of the program for

the conservation of resources as the first three named.

If prices are to be

fixed for raw materials under the policy now adopted, wasteful consumption must

be restrained in order to insure a well-balanced price level so that the maximum
prices fixed will not operate to strain production. Probably consumption taxes,
skillfully employed, particularly to articles of luxury which contain raw materelements which are essential for war purposes, are the only effective means
of enforcing economy of consuprtion.

TheE.,e few suggestions are really intended to point out what I believe

Is the conviction of many thoughtful people, that our present policy is not well-

balance4 either as regards credit, raw materiel, labor, industrial plants
taxation.

and

he whole program of organizing the nation for war should be revised

so that the maximum pressure can be applied to the one elementary and fundamen-

tally national need at the present tim) reduce unnecessary consumption and

timulate the production of essentials.
Beyond the economic problems there is an equally important social or

)olitical problem.

7e can lose the war lust as promatly by failure of poralar

support of the war as we can by military defeat or exhaustion of resources.



#5

Adrian Larkin, Esq.,

2/27418.

If the nation's activities are not reorganized concurrently and by a wellbalanced program, hardship is bound to

by unemployment, or in the other

result, caused in

inflated prices and

consequent

always be borne in mind that

one of the

extreme by

living hardships. So that it must

the one extreme

principal objects of a well-balances program is to keep people employed and
contented and enthusiastic about the

war, rather than discontented and sullen

and reactionary.

Very

truly yours,

Governor.

Adrian Larkin, Esq.,
Messrs. Joline, Larkin & Rathburn,
54 Wall Street, New York.
-IV Bill




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