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Woods Hole, Mass,.


July 30, 1916.

Yours of

the 26th reached me at a rather unfavoraAe moment as

We had just agreed to a leave of


say of four months,

enable Mr. Jay to do sOme work at Washington.

Mr. Curtis informed me coming up that he had finally determined
to enter the light artillery, and had made all of his arrangements to do SO.
Mr. Sailer's health, as you know, is not beyond the point of some


to the organization.

My awn is kept is.k4ot going by persistent lack of regard for
office hours, and the


work of the bank.

Now let us supose that while Jay was away Sailer was taken sick,
Curtis left, and I had the misfortune to be laid up, and at the same time
you were running that discount company -- where would the bank be!

one has given more

thought to the. -uestion of the personnel of

the bank than I have, and, frankly, I regard it as the duty of every man in
the organization to stay there under present circumstances without regard to
what inducement may be offered him elsewhere.


You know that I believe in

about these things, and while some of our


mipt be in-

clined to say, and, doubtless have, that it is a matter solely for you to decide, that is a position that I


can't very well take.

record in the bank, the relations established

with New York

bankers, and now when I an away sc much, the fact that you carry final re

sponsbiiity, is the best evidence of the importance of the position both

to the bank, to the public, and to ib, 4svernment, and, frankly, if I were
you I wouldn't let any considerat an on earth tempt me away from it. This

is sent in the best nossible spirit and is really inepi-ed-not be any self444i(

ishness but by the real affection 1 feel for you ix the knowledge I have

of the sacrifice you'made to come to New York to help us out.

Jay's plans and Curtis plans were both communicated to me in grebt

confidence, and I felt that I we probably the only one in the bank able to
form some judgement, from the banks standpoint, as long as the others did not
know what was brewing.

In back of my mind I had no doubt of what your decision would be
any way.

With warmest regards

and many thanks for your letter, believe rneb
Sincerely yours,

!i°, R. H. Traman,
Federal Reserve Bank,
15 Nassau Streets New York.



Office Correspondence
Jay. Case and Sailer



Date_ Neves_444_191.8.

Subject :

Fro: _11e4._4trong

In a letter dated Ootober 22, 21114 Montages C. Norman, Deputy

Governor of...!t!... 40.4,1Aliejlae4,,,,writes me import as fellows:

°Having learned that Mr. R. P. 16 Rae,
Annaging :Amstar at the Bonbay doany, Ltd.,

of India, it planning a busineas trip to the
United Aettois I write to say that I have ventured
to give him a letter of introduction to youreelf
whioh will be seat out so as to reaoh him before
he leaves Ind's..
**All you have the kindness to give
such help to Mr. Nee as hO may have occasion to

need, and let as say that, although I am not
personally acquainted with him, he is a close
associate of Uessrs. 'Nallece Bros. & Jo. of iondam,
whose senior partner has been a director here for
or many years. The enterprise and position
of that firma. well as of the Bombay Oonpany are
probably as well-am :4n to you as to my."

I have 4ritten Ur. Norman that should mr. Rae call in ny
abeenoe from the bank my associates will see him ann will do the needful.

I am most anxious that everything possible be clone to promote
the purpose of Ar. Rae** visit here on aceount of our *lose relations
with the Bet* of gegland.-


Lake George, N. Y.,
February 5, 1919.
Dear Mr. Treman:

There are one or to matters,- suggested by minutes and other papers
sent to me from time to time, of which I should possibly have written you


After a good deal of experience in

bearer bonds, I em


treeing out the ownership of

that it will be necessary, in case Mr. Glass'

recommendation for an extension in the

conversion privilege on the old 4e is
unconverted bonds by sending notices

adopted by Congress, to reach the holders of

back through the banks Which nresent the coupons for
introduced into

Congress should

three months or a period of


furnish each

The bill to




provide that the conversion privilege extends, say,

time beyond the coupon date in the

so that as rapidly as coupons are presented
can be called unon to trace


back the



of etch

pvyment each bank presenting

ownership through




correspondent and

with a notice ceiling direct attention to the privilege

of conversion.

would you mind

suggested by

Leffingwell'i telegrsm of
In the "Zxecutive

ported a conversation

to their

taking this up


give the insurance

with Yr.

The thought is


Committee minutes of January 22nd,
011esheimer of


Mr. Case re-

Metropolitan Bank in respect

Ire should be very careful dot to directly or indirectly

companies offense by inquiries of this kind.

made with the larger life insurance

Fourth Loan

with Mr. Leffingwell!

The arrangementss

companies for increased subscriptions to the

were all in accordance with conversations I had with Secretary McAdoo

over the telephone, and, of course, it was necessary to assure those gentlemen
that in the
care of.


they were obliged to borrow heavily their banks would be taken

7e must not go back on that commitment.

Those cases Where borrowings


r. Treman

develop such as-the Metropolitan Bank can be identified es due to the insurance
company subscriptions without difficulty.

In the minutes of the Senior Officers' Meeting of January 7th an

error in the calculation of discounts was reported Which chenced the figures on

Which our books rere closed at the end of the year.

I think it is important that

the minutes of the Board should set out the closing figures in detail, and I suggest that a corrected copy be embodied in the minutes of the next Directors' meet-

ing corresponding to the figures in our genera/ ledger.
I hope you all keep well and are not over-rorking, and am looking
forward to seeing you on the fourteenth.

rith best regards to all at the office, I sm,
Faithfully yours,

R. H. Tremen, Esq.,
Deputy Governor, Federal Reserve Bank of Ner York,
15 Naseeu Street, New York.


Washington,Aarch 31,1919.

Dear Mr. Tren:
The enclosed latter from Mr. John S.

Jenka, Jr. explains itself. Would you mind replying?
Yat7.r vlry truly,

:iir..,,R.Haremanv-----Feaerel Reserve Bunk,
New York City.


March 29, 1919.

Dear Mr. Treman:

gr. Leffingwell has handed me the file of iorrepondence with
Mr. Osonr Wells, PreA.dent of the First National Banl of Birmingham

in regard to offers of Treasury Certificates of Indebtedness made
by New York brokers in other Federal Reserve districts.


ease of that character has jut arizen with Bond and Goodwin in their

circular of March 17 making an offer of certificates of recent tames.
In referring to previone correspondence you will observe the diffi-

culty caused in other districts by this practice and I suggest that
you might have a friendly chat with Boni and Goodwin and ask them if

they will not take this offerirg off their circulars.
Very truly yours,


Federal Reserve Bees,
Ne!, Yorh.

APR 1 8 1919

Washington, March 28,1919.

Dear Mr. Treman:

I have ycurs of the 26th:an4etherl 101 for the news it containe.

I hepe you will exnlain tc cur directors that even if I am unable

to return in time for next Wednesday's meeting it was simply because
important matters, including the next loan and the business of the bank
are receiving attention here every day and I believe better prcgrees can
be made by my remaining then by my returning too soon. Besides, it
giveu ma an opportenity to plan golf which I cou'd not dc UAL returned
to New York.

I hope that we made no mistake in encouraging the man tc purchase

that building to hold us up,in the belief thet he on get a striker's
I am ware we can build our building without material lose by
leaving that property out entirely, and if this is made clear to him he
will doubtless tae a different view.
I would not pay him any Wend

mcney bet would go right ahead with building plan without regard to his

About another circular to member banks in regard to segregating gold

certificates I understand that we were first tc tend oet the circular
calling their attention to the large supply of large denomination notes
and see what effect that had. Later, following it up, with a. personal
letter requeeting them to continue to sort their curreAcy and ship us
gold certificates as accumulated.

ethers at the bank?

Ts th0 satisfactory to you and the

Tours very truly,

ir. R.H.Treman,

New York.



March 28,1919

Deer Mr. Treman:

You have dcUbtless noticed in the eres the reported state-

ment by Director General Hines that he has abandoned the project
fez financing the railroade by acceptance deafea.

This reatter was fully di seed at two meetings of the Governors attended by the Director Genera?and no doubt his actior is
the result of these conferences. I took the position that whether
tLe Attorney General rendered an opinfLon favorable to the plan or
not it wee neverthelosu a fact that the payment of the drafts at
maturdty largely depended on the willingness or ability of Crigress
at a very early date to pees the necessary appropriation bill. Failure to puss the bill world pet the reserve banks, tec'enically, in
the positic of holding a large amount of paper against which poesible federal reserve notee had been issued Which could nob be met
at maturity end must therefore be the subject of an engerced renewel.

The other Gevernors agreed with me that aver though powers of
the Director General had been established by a decision of the United
States Supreme Court thls doubt as to the prompt payment of the

paper might'result in much criticism of the Reserve System and. some
This risk we
impaireent of general cenfidence in its management.
reluctant to give
coeld not afford to run and we therefore were
assent to the plan even though the Attorney General had held the
view that the Director General had the power to accept.

The result of the discussion has in fact been a complete abandonment of the plan to draw bills.

Will you pleaee regard this letter as cenfidentiel, bet I wculd
would be glad tc have you show it tc Mr. Hepburn also in confidence.
Yoers very truly,

Mr. R.H.Trelean,

Federal Reeerve Beni,
New 'fork.

*4' 1919.


-Dear Mr. Treman:

Your letter of this morning delights me tremendously.

wish I could feel that I deserve some of the kind things that
have been said about my work.

The credit oolongs to a splendid

organization which worked in the right spirit and no small part

of it is due to these fine loyal associates of mine in the bank
who gave me the freedom to undertake that work without a thought

or anxiety about the bank.

am grateful to you for your letter and for many

other things.
Sincerely yours,

R._11. Tromso, DPI:,
Deputy-Govarnor, Federal Reserve Bank of New York,
New York, N. Y.

October 16, 1919.
Dcar 2r.

In acting upon your reeignation

aocordance with whet I no are

your wiEhee, our director::: have :ivesi all of us in the E-,k cauee for real

regret that our intimate association of the paet few years will be, in ;art,

ken of your age and mine cnnot be associted in a time of J'eAt
strain without develo,ln mutual feeling of admir.. on ,11c repect, which are,

in fact, one of the re t rewrth. of :Alch an aseociation.

And i want you to

feel that I, ),:ersonally, api.reciete that the sacrificee and inconvenience
u,en you by your servicee here hue been to no zmall extent owing to your
desire to relieve me at a time when I Ive only able to dischrge a part of ziy
obligation to the Bank.

at time made it a cie r

I 111.i. -.1waye be griteful for thie,

if I haveLlt

:etibly I thoLL.dimeoe attribute it entirely to

the distract,.one of our work, which we have all felt and sufrered from.

You have done a gre t ,4ece of ,ork, no greeter for the Eani than for
tLe whole country, and I ho,e you will consider that a part of th reward, at
leeLt, l the splendid r g4rd in which you are held ty the 1:e'eers of the cc,untry,
who have beeeme .sca,re of your share in evryth

)comi.liened by thi Y:_nk, and

who know by wht ahi6h LpIrit of Atriotieh you r.-ve alwys beea iepir d.
Sincerely your friend,
E. Treman, E's.,
Ithaca, New fork.



Sent by


tern Union


.T4nuary 5,






is t;A..inty ont:. thoutitind five hunlr

pt: raw nen



fund to Lr the nt.à. un a to pt
t torneil University

itri wra

Ireakm ent:.11 tmve tihe ;.4rivi1ee of otaiign, ting

iwae troira t

runts. unid I


pp-Lied. End. quote.


Dear ?Ar. Treman:

I have a note to prepare some letters of introduction
for your use abroad, but I failed to jot down just 'where you
144ould want such letters, hc., many, bald of wha.t character.


you drop me a line, or wire me on receipt of this, indicatxng
about what you have in mind.

I know so many people on the other side that it wou'id

be difficult for me to make a selection without a better notion
of just what your plans are
Yours very truly,

R. H. Tre#44a, EN')
c/o Tompkins County National Bank,

Ithaca, N. Y.


Iontagu C. Norman, Esq.,
Bank of England,
London # England

Dear Norman

Sir R. V. Vassar-Smith,
Lloyds Bank Limited
71 Lombard Street,
London, England.

Dear Sir Richard

Captain Robert Masson,
Credit Lyonnais,
19 Boulevard des Italians,
Paris, France.

Dear Captain Masson

Dear Sir'
Monsieur Joseph Simon,
Societe Generale Pour Favoriser is Development
du Commerce et de L'Industrie an France,
29 Boulevard Haussmann,
Paris, France

This letter will be presented to you by my friend and associate, Mr.
Robert H. Treman, concerning whose visit to


I am writing by separate


I feel very sure that you will find pleasure in having a chat with

Mr. Treman, and he is looking forward to the pleasure of meeting you during
his stay in


I have not hesitated to assure him that he will receive a cordial
welcome from my friends in<'aris


Assuring you in anticipation of my appreciation of any courtesy you may
show Mr. Traman, I beg to remain,

Faithfully yours,


I beg to enclose copy of a note of introduction which I am giving

to my friend and associate, Mr. Robert H. ireman

atta' ,d

who is sailing for Europe on the


As you are doubtless aware,

. Treman is one of the members-of the Board

of Directors of this Bank, and was, until recently, one of its officers.
;While his trip to Europe is primarily for pleasure, he will, I hope,

take the opportunity, it time

affords, to call upon you?

You will, I am sure, appreciate the opportunity of having a chat with
Mr. Treman, and I will greatly appreciate anything you are able to do to make
his visit an agreeable and profitable one.

With kindest regards and best wishes, I beg to remain,
Faithfully yours,

June 22, 1921.

My dear Tremen:

I am sorry not to see you before you sail on Saturday, and as I am
leaving for Atlantic City to-day before your reply to my letter reaches the
office, I may not have furnished you pith just the letters of introduction
which you need.

If you will leave word at the office, I will see that they

are sent after you, but will need your address abroad.

In presenting the letters, I suggest that they be sent in advance of
cailing,by mail or messenger with the recueet for an appointment, which is the
European custom.

you know about, and realize that he is a very warm personal

friend of mine, one of the real leaders in London just now, and of course a very

busy man, but always glad to see any one from this


Captain Masson is one of the most able and soundest and most broadminded of the French bankers.
having a chat with him.


I have known him many years and you



Ha speaks English perfectly.

SirAVassar-Smith is the head of Lloyds Bank, a very charming man, but
of course not the most active man in the bank.

The bank is really run by Mr.

Henry Bell.

Monsieur Joseph Simon of Paris, for a long time represented the French
Government in New York and Washington in financial matters during the war.


was very popular here, and on his return was made the active head of the Societe


which he has placed upon a

a splendid record for himself.

very sound basis,

and I believe has made

You will like him very much.
Yours sincerely,


October 26, 1925

Deur Mr. Tran'an:

I am ill receisa of your letter to me of ictober 23.
Governor Strong is writing his guests today giving the details
of hie dinner thia Thursday to meet Dr. Schacht.
Very truly yours,

D. H. Barrows,

Mr. F. H. iretran,
Tompkinaileounty National Bank,




January 11, 1927.

Dear Er. Treman:

Mr. Reyburn has asked we to oend to you copies of three
letters which he, Mr: Woolley and Mr. Young had me take to Governor

Strong at Asheville leet Saturday.

They speak for themselves.

Beyburn also asked me to enclose a copy of the letter olaich
Governor Strong wrote while I mae at Asheville to be delivered
yeeterday to Mr. MeGarrah before he went to Washington.

You will apereciate, I am our the confidential nature of
each one of theee. communications, and might care to bring thea beck
to New York when you come to the meeting on Thursday.

Very sincerely yours,

7r. Robert H. Treman,
cio Tompkins County National Bank,

Ithaca, N. T.


Stuyvocunt Road,

Biltmoro Forest,
Biltmore, N.C., February 16, 1927.

Dear Mr. Troman:

It was nice to have your letter last month, and I am so
sorry to have been delayed in aclulowledging it.

But you need no


I um getting along slowly but steadily, and of course am

intensely.ialerested in the roportt I get from the Bank, which come

won't you give my best regards to everybody there when

you are next in Now York.

Tith all good wishoc, X am

Sincerely yours,

Ur. Robert H. Tremen,


New York.




July 26, 1918.

Benjamin Strong, Esq.,
Woods Hole, Mass.


My dear Governor:

We have had a very hot, oppressive week here, so far as the weather is

concerned and we have also had a busy week.
The money pool has put out about ';140,000,000. of the.',..,'200,000,000. and

yesterday we were called upon for about c16,000,000.

Leffingwell advises me, however, that he thinks the cleaning up
process connected with the tax payments is over, so far as the Government is concerned, and they will be in a position to carry larger balances and we shall to-day
hope to put out perhaps v;i',40,000,000. or 450,000,000. if they make the transfers

contemplated so as to help relieve the situation.
are trying, however, to avoid easing the money market to such an extent
as in any way to encourage speculation which might develop, should we have a pronounced war victory.

I was surprised yesterday to receive a call from Messrs. Vanderlip, Alexander
and prosser in connection with the new discount company.

They stated they had a

meeting again yesterday morning, had gone over the matter very carefully and it
was the unanimous wish of the heads of the institutions interested and of Mx. M.
that I

take the position as president, that I could be assured that I would not

have to put in any more time than I am now at the Federal Reserve Bank, that it need
not interfere with my living in Ithaca, that I would be given support in every way,
capital and advice, that the salary would be made larger than I would think, etc. etc.

I reiterated my former statements and said that I felt that so long as I rmained in


Benjamin Strong, 4sc.,.



New York that my first service should be in connection with the Federal Reserve Bank,

provided the directors agreed, but that I would take the matter again under consideration and advise them within a week.

Mr. Case had about twenty of the note brokers in the bank yesterday and had

a very satisfactory meeting with them, in which they agreed to assist in every way

in maintaining the transactions in certificates of indebtedness at par and interest
rather than on a discount basis, in exchange for commercial paper.

I hope that you are having a fine rest and. that Curtis and you are having

satisfactory golf.
We are working on the changes in the bank but move slowly on account of

lack of labor, etc.
.Lind regards.

Sincere ly,

izz, A/7

3YZ /eAll





ffice Correspondence


Date-Apri1-2, 1919.

Governor Strong


R. H. Treman




I have your letter of March 28th and have shown Mr. Jay the paragraph
relating to the man who purchased the last. building in the block and who has
been holding us up.

The matter has been discussed severa
and I think they are keeping in close touc

times by the Building Committee
with Mr. Guerrlich and the situa-



I. I ZI! tf..4


May 29, 1919.

My dear Governor:

It is a pleasure to think of the fine testimonial which was given to you last evening and which seemed
to be so genuine and sincere.

You have done such a truly great work in organizing and directing the Liberty Loan Organization and in
the wise counsel and advice which you have given, that I
feel confident that you will look back upon this work of
the past two years or more as being the greatest service
thus far in your life.

I have great admiration for your ability and hope
that you may sp watch over your health as to insure a continuation of your service to the world in causes which conduce to the betterment of humanity.
Sincerely yours,

Benjamin Strong, Esq.,
Governor, Federal Reserve Bank of Aew York,
15 Nassau Street,
New York, N. Y.

July 17, 1919.

Dear Governor:

I enclose for your information copies of cables D591 and D592 pertaining to
the exportation of German gold.
Mr. Curtis begins his vacation to-day spending two weeks or so at Manchester
with his family and incidentally chasing the quinine pill around the green.
We expect to have a meeting of the officers to-morrow to go over the chart
with Yr. Hopf and then put it into effect.

Mr. Locke called at the bankto-day, be having come down to attend a Farmers
Loan and Trust Company meeting.

He made inquiry about you.

looking very well and seems to be feeling well.

Mr. Locke himself is

He said our Buffalo Branch was work-

ing "fine" and that Gidney was doing extremely well.
The stock market continues active and loans are increasing at about the same
rate as in previous weeks.

Mr. Leffingwell plans to start the sale of loan certificates on July 29th.
Mr. Rudd is devoting himself to the War Savings Organization while Mr. Daubel and I
are completing our Certificates of Indebtedness Organization and will be ready for the
campaign when it comes.

Governor Harding is to be here to-morrow, I believe.

To-day we distributed the Argentine gold among the other banks, their share
being about $58,000,000., we retaining $33,000,000. bare.
Everything seems to be going all right thus far.
Sincerely yours,

Benjamin Strong, Esq.,
C/o Morgan, Grenfell Co.,
22 Old Broad Street,
London, E. C., England.




July 18, 1919.

Dear Governor:

Governor Harding has been with us all day.

Mr. Jay arranged for sever-

al members of the Clearing House Committee, Messrs. McGarrah, Pearson and Hines to

They discussed some changes in the Clearing House exchange charges and

meet him.

they agreed to take up same at the next meeting.

Governor Harding stated that the Board would like to publish weekly the
totals of call loans made by New York City banks for themselves and for out-oftown banks.

Mr. Hines thought it would be helpful.

Mr. McGarrah thought they

had better take it under consideration and it was so left.

Mr. J. P. Morgan came over to the bank at 2:45 to discuss with Governor
Harding the eligibility of some French bills.

Upon being asked what he would think

of publishing the call loans, he rather disapproved but would consider it.


Morgan seemed somewhat disturbed over the exchange situ?tion and thought if not corrected it would have an adverse effect upon business.
Exchange reached its lowest point yesterday but to-day is about 4.40.

Governor killer and another representative of the Kansas City Bank were
here all day yesterday and up to noon to-day in consultation with Mr. Trowbridge.
Governor Miller stated they want to build a twenty story building to cost about

$4,000,000. but thought they could figure out a way to rent ten stories at such
rental as would free the other ten stories of any cost tØ the Federal Reserve Bank
in its occupancy of them.

Mr. Crane is sending you a copy of cables regarding German gold and we
have thought best to hold matters in abeyance until your arrival there, which action
is satisfactory to the Grain Corporation.

I had a call to-day from T. Horihoshi who is on his way from Japan to Lon




don as Superintendent of the London office of the Bank of Japan.

The stock market is becoming a little more uncertain and cautiowiry signals
have been sent out by many houses but the pace still goes on and call loans increase.

plan to go up to-night to speak to-morrow at Oneonta before a group of
New York State bankers.

Governor Harding said to-day the Board was seriously considering recommending an increase in rates of discount in Federal reserve banks.
Philadelphia both believed that rates

should be raised.

Best wishes.
Sincerely yours,


Benjamin Strong, Esq.,
C/o MorgAn, Grenfell Co,
22 Old Broad Street,
London, E. C., England.

He said Boston and

July 21, 1919.

Dear Governor:

We are having another copy of the chart made, revised according to the
decisions as to the assignment of individuals, etc., to each department and hope to
put same in operation at once, after it is submitted to-morrow to the officers in
its final form.

Mr. Jay goes this afternoon to the western part of the State to call on some
State banks with Mr. Gidney, hoping to secure some additional members, I believe.
Mr. Curtis advised me this morning that he has been unable to secure Mr.
Gordon of McAdoo & Cotton's office and has no other one to recommend particularly,
so we will probably have a committee appointed to look up a good man for General
Counsel of the bank.

The Feder41 Reserve Board examiners, under Mr. Will, are still here.


report criticisms as to the condition of the books which are much behind in the 44th
Street Branch and we will take immediate steps to bring these up to date.

Mr. Rudd

has been in Washington during the past week and is working hard on the War Savings

We expect an issue of loan certificates to be offered as of about the first
gr. Leffingwell is considering offering them periodically on the first

of August.

and fifteenth, or other two dates, of each month beginning August 1st.

We have our

Certificate of Indebtedness organization, so far as County Directors are concerned,
nearly completed and ready for its work.
Call loans increased Thursday last $15,000,000. so that the increase is
very persistent and regular.
Best wishes.

Sincerely yours,


July 22, 1919.

Dear Governor:

We were greatly pleased to receive
to-day that you had arrived safe and well.

your cablegram
Mr. May will ad-

vise your family.

I understand that Mr.



improving steadily.

The Executive Committee to-day appointed a committee consisting of Messrs. Jay, Woodward and Treman to look

up and report as


a General

Counsel for the bank.

The question of another Deputy Governor came up,
which we understand you have in mind

and will take up at

the proper time.
Very truly yours,

Benjamin Strong, Esq.,
0/0 Morgan, Grenfell Co.,
22 Old Broad Street,
London, E. C.,

I am enclosing three personal

have forwarded to. you.

letters which

Mr. Beyer desires



July 23, 1919.

Dear Governor:

We had a directors meeting to-day but only Messrs. Saunders, Woodward, Smith and myself were present.
Mr. Thompson is temporarily ill;

Mr. Jay is in western New York.

Mr. Towne writes that he has also been ill but is better now.
time at Litchfield.

He spends his

He is very much interested in the building project of

the bank.

Mr. Trowbridge 800MS to be busy with work in connection with the
Kansas City and other banks.

We are advised that the architects are working hard on the bank

I am

sending you

to-day a sheet


the comparative earnings of

the banks in which you will note thA the New York bank stand at the head
as regards the ratio of e)cpense to earnings.

Governor Harding spoke of it

when here last week.

The market continues strong except for an occasional setback but
much attention and thought are


to the rates on exchange and they seem

to be acting somewhat as a deterrent factor in general speculation.



how3ver, seems to be more "bullish" and with plenty of money are keep-

ing up the pace.
Best wishes.

Benjamin Strong, Esq.,
London, England.

Very truly yours,


July 25, 1919.
Dear Governor:

had e nice letter from Mr. Cese who has been spendin4 his vacation at Rangeley Lakes and says that he hue been much benefited thereby.

He expects to return a-

bout August 1st.

Mr. Leffingeell ;gee impressed vary fevorably by ix. Rudd and he has called a

conference of the district heads of the Government loan organiw.tion to straighten out
some differences reducing the per3onae:1i sec' developing a new orgeeizr-tion.

Mr. Rudd

is giving himself entirely to this work and :es hope thet good results will be produced.

the plan, of course, is to l'ucctioe throuzh the Federal reserve bans.
2r. Jay returned from the

stern part of the &tete last night end I assume

1,1e will write you le to his trip.
When Governor Hardieg *OA nelb last week he talked vary freely to some of the

bankers and intimated that the Board bad not been able ta functien as to discount rates,

etc.freely in the paet owing to the Treisury o,;er tiors, but he thought the tiwe was
coming now when they eould be oUliged to suggest the r.isirz of discount rates, etc.
Re told the members of the Cleering Leura Comlittee WAhs.ers. -anoc, Pierson and McGar-

reh, that he thought the banks would have to :sive titeir rate& soon and also told W

J. P. M. the seme thing.

This was last week and in the last day or two *e are Leering

that street rumors are to the effect thet Federal reserve banks Are eoon to raise their

I advised Mr. Leffingwell by 'phone of these eumare as I thought ha ought to

know as if we should take euob action it would affect, in my judgment, the sale of

certificates of indebtednese.
Mr. Leffingwell stated that he did not believe rates should be raised and
that he had already talked with Governor Harding since his return to weshington, opeoe-

ing any such idea at present.

Personally, I hope that NO shall not have to raise


rates for some time to come unless absolutely necessary to protect the situation.


we can continue the present rates up to the time when the Victory and Loan notes matur

The street loans continue to increase at tlte rte of tS,OW 000. L
or so a day.
We are beginnind now to 1:.av

eetinge of the Controller of each department with

the manager and his ausistante orgknizing the departmental committees.

Mr. Seiler his been working again recently on our sailing system snd thinks he
has about completed it and that the new plan i1l effect a saving of many thouednds of

dollars in operation.
Sincerely yours,


Benjin Strong, Esq.,

C/o 'Iorgan, Harjes k Co.,
Boulevards iioussm3n,

Faris, France.

rent to Lon




July 28, 1919.

pear Governor:

i am glad that you are escaping this intense humid heat.

We had

a week of rain succeeded now by hot weather accompanied by occasional electrical storms.

I am sending you some matters herewith that may be of interest to
you, such as a letter from Secretary Glass, etc.

McKay of Chicago has been here for three or four days looking up
the acceptance market and I think Chicago will cooperate to a greeter extent
than heretofore.

We hear many rumors of efforts being made to develop some reasonable schemes for extending foreign credits, but as yet nothing has come to the

The bill of Senator Edge has been reported favorably and is receiving very good support.

How long it will take to secure finel passage no

one knows as there is some opposition from Senator Gronna of South Dakota
and others.

Mr. Will and the bank examiners have completed their report to-

day and advice that everything is in very good shape except the accounts of
the 3d, 4th and 5th loans at 44th Street as I explained to you a few days ago.
This ir all now receiving attention.
Sincerely yours,

Benjamin Strong, Esq.,
Paris, France.


July 30, 1919.

Dear Governor:

Mr. Warburg sails Saturday, I believe, for Holland via Plymouth and when
Mr. Spencer of the Boston Federal Reserve Bank was here with Mr. Warburg on Monday
Spencer decided to accompany Mr. Warburg to the other side, so you may see them.
Mr. Case telegraphed to-day that he had a most delightful motor trip thru
the White Mountains, expecting to reach Great Barrington to-night and begins work
next monday.

Mr. Jay is planning to go to Washington Sunday night for a couple of days
as he has not been there for some weeks.
He and M
they felt, in their trip thru the western part of the State, as far as they went,
the Olean Trust Company having decided, since they were there, to join and others
are expected to follow.
Mr. Beyer is reported as being at home and is improving all the time;
is able to sit up some.
Our committee formed to secure a General Counsel for the bank, Messrs.
Jay, Woodward and myself, authorized Mr. Jay to consider the following names:
Mr. Marvin, Mr. Paine (of the office of White & Case) and Mr. Wardwell.
was also suggested by Mr. W. B. Thompson that possibly Mr. Leffingwell would be
available later.

We expect to send out a notice that Guy Emerson has resumed his work
with the National Bank of Commerce and that Mr. Rudd takes his place as the official heed in this district of the Aar Savings Organization.
Mr. Hopf was called to Washington one day last week for consultation
as to the reorganization of the-War Risk (insurance) bureau.
that his work was so pressing here that we could not spare him for more than perhpps a day once in two or three weeks, in which view he fully assented.
The revised program of competition for the architects was submitted today to the directors for their final criticism before turning it over to the architects.

Mr. Hopf is now engaged in the organization of departments and is working
with the departmental committees.
The work seems to be 2rogres
Te had a directors meeting to-day.
The Federal reserve examiners have
completed their work and Mr. Jay submitted their report containing certain suggesThe oftions, some of which have already been carried out and others will be.
ficers have prepared a statement regarding each suggestion they have made, explaining the situation either as to the adoption of their recommendation or pointing out
in one or two cases where the examiners seemed to be at fault in their statement on
further investigation.



There was no change made in rates of discount and the general opinion
seems to be that it is not advisable to change for a month or two yet anyway.
Stock exchange loans increase steadily and I should assume that with the
loans of those not reporting and of money borrowed privately an estimate of
$.2.04,Crooa,,,owould not be far out of the way.

Mr. Broderick goes on September 1st as vice president of the National
Bank of Commerce.


Think you are sufficiently tired after reading this to have no more gosI merely want to extend every good wish to you for a most pleasant as well

as useful tri12.

Sincerely yours,

Benjamin Strong, Esq.,
Paris, France.

August 1, 1919.
Dear Governor:

Call money went to 20% yesterday after the close of the market and we expect that we shall have an erratic market and strong demand unless speculation subsides.

There is a still further increase in brokers loans of $3,600,000 yesterday and this is about an average of each day's increase so that we are practically
$700 ,000 0000 above the amount loaned in February.

/77 9- 04-4 / -

/ a 7 y - 3-46 2-/.

Mr. Case appeared this morning having returned yesterday from Maine.


reports beautiful weather with very little rain and not a full day of rain since he

He is looking very well and feels fine, he says.
I leave to-night for two or three weeks' vacation and shall hope to get

some golf as I have played only four or five times this year.

Mr. Biggins has placed Mrs. Higgins in


sanitarium at Stamford, Conn.,

she having had a nervous breakdown and will have to remain there for several months.

Congress adjourns for a while now and it is well because it has seemed to
lack constructive leadership and the dominant parties seem to be so divided that as
yet they have not been able to agree upon any program.
Hope you are keeping well.

Mr. Jay will write you occasionally while

I am away.

Best wishes.

Sincerely yours,

Benjamin Strong, Esq.,
C/o Morgan, Harjes & Co.,
Boulevards Houseman,
Paris, France.

August 25, 1919.
Dear Governor:

I returned to the bank this morning from my vacation, spent mostly in motoring

around Long Island and Net York State, in playing golf some at Ithaca and in attending to
some of my business matters which needed attention.
Mr. Jay left Thursday or Friday and is, I understand, to spend two or three
weeks in northern Canada from thich. Shepard Morgan has just returned.

I have not been able to pick up the threads yet but was disappointed to learn

that the Treasury Department, in putting out Series C-1920, has abolished all quotas formerly assigned to the banks, leaving it optional with them to subscribe.

They also plan

to issue another series of tax certificates dated September 15th.
We had a. meeting of the Building Committee to-day at which Mr. Trowbridge re-

ported that Friday was the last day on which the competing architects would send requests
for further information and a number of detailed cuestions were considered by the committee but none of them were of very great importance apparently.
I have not had a chance to talk with Mr. Rudd yet about the War Savings Campaign,

but with Shepard Morgan I hole to work out a budget and secure information as to what they
Mr. Rudd certainly has a job to develop interest under present conditions but

are doing.

we must do all we can to assist him and I have suggested that he give his entire time and
thought to this particular line of work until it is on a successful basis.
I am enclosing a few facts for your information and will write you from time to
time hereafter.

Money is ruling at 6% with indications of the rate being better main-

tained than'inthe last two weeks.
Very best wishes to you and with the hope that you are enjoying the change even
though you are working hard, I remain,

Benjamin Strong, Esq.,
C/o Morgan, Orenfell Co.,

22 Old Broad Street,
Federal Reserve Bank of St. Louis

Sincerely yours,


August 23, 1919.


Reserve Position
Earning Assets


Commercial paper
Loans secured by Govt. obligations- - Acceptances
U. S. securities owned


Total Gold Reserve

_ _ _ _

Deposits (net)


Federal Reserve Notes (net)


Due from Depositary Banks as Fiscal Agents
(Govt. deposits)


Call Money -


Total Brokers Loans Sabscriptions to Certificates of Indebtedness,

Loans to-day increased4,000,000.

August 25, 1919.


August 26, 1919.

My dear Governor:
I received to-day your letter of August 9th from Amsterdam enclosing
copies of cables 10 and 11.

I will ask Mr. Crane to send cable confirmations

in code, as you suggest.

Mr. Beyer came back to the bank yesterday and is looking and apparently
feeling very well indeed.

Mr. Hendricks is also back after having been laid up for a while with
trouble with his back.

He is now to have a straight jacket made which he will

wear for a while and this may serve to keep him in good behavior every way.
Mr. Aumack and YieS Bruce are to be married this week Thursday.

I understand Mr. Leffingwell is on a vacation at Lake George for ten
days or so.

J. F. Curtis is to come back next week to take up the practice of law.

The members of the Federal Advisory Council have been notified of a
meeting to be held about the 15th of September.

Mr. Hepburn has asked Mr. Jay

to suggest topics.

The President's address to the public in re the demand of the railroad
shopmen has evoked much interest and is generally favorably considered.

Reports which come to me from Mr. Crane of our bank who visits


member banks are to the effect that a number of national banks are considering
making application for a State bank or trust company chatter
Williams is continued.

in case Comptroller

I have reported this information to Governor Harding.

The chart is still with us but we are working at it daily hoping to
have it quite well perfected when it is put into operation and copies sent to
the banks as we hope to do next week.





Cordial greetings from all.
Sincerely yours,

Benjamin Strong, Esq.,
Morgan, Grenfell Co.,
22 Old Broad Street,
London, E. C.,




Reserve Position


Me. ...

26, 1010.


Earning Assets


Commercial peper
Loans secured by Govt. obligations - - _ 635,994,114.94
- -96, 228,220.34
IL S. securities owned


Total Gold Reserve


Deposits (net'


Federal Reserve Notes (net)


Due frIm Depositary Banks as Fiscal Afents


(Govt. deposits)

Call Money -


Total Brokers Loans Subscriptions to Certificates of Indebtedness.

Loans to-day increased

August 27, 1919.



August 27, 1919.

My dear Governor:

In Mr. Jay's absence Mr. Shepard Morgan is starting to secure the Federal Reserve Bulletins and other data you desire for the Bank of England and others.
At the directors meeting this morning only four directors were present.
No change was made in the discount rates.

Your cable concerning leaving a certain deposit of gold in the Nederlandsche Bank under the terms proposed was considered and Mr. Case will cable you
the details.

Our reserve to-day is 44.2.

During the week we lost about


of gold.

At the moment there seems to be some possibility of a strike by the
railroad shopmen who are not disposed to accept President Wilson's recommendation.

Meanwhile, there is more or less uncertainty and hesitation because of the labor

Mr. Beyer seems to be active as usual and feeling well.

We are still working on certain details of the chart before its publication and distribution.
Hope it will work out satisfactorily.
Best wishes.
Sincerely yours,

Benjamin Strong, Esq.,
London, England.

August 29, 1919.

My dear Governor:

Mr. Strauss wrote on August 26th stating the amount of loans secured by
stocks and bonds on August 15th was $2,945,970,000. for all reporting banks, whereof $1,310,336,000. was in 1\iew York City banke.

He then stated that he would be interested, once for all, to establish
the relation between the totals as furnished to the Federal Reserve Board and totals of loans made up by the Stock Exchange officials.
I informed him that thcbse were given to us in strict confidence and that
we would not feel at liberty to furnish them unless consent ARS given by Mr. Remick,
president of the Stock Exchange.
He stated that he would take the matter up with
Mr. Remick direct as he knew him very well.

I have advised Mr. Straus that during my absence Mr. Remick called at the
bank and told Mr. Case that the Stock Exchange would like to discontinue furnishing
these totals to the bank no that the war is over, etc., to which Mr. Case replied
that he hoped he would continue them until your return as the arrangement had been
made with you personally,and to this Mr. Remick assented, Mr. Case understood.
I added that in my own opinion it was desirable to have these figures continued during the present year or as long as the war financing was not over and to
this Mr. Straus agreed.
He said he would talk with Mr. Remick urging him to continue,as it really was not imposing any particular burden on the Exchange to furnish
this and it was really in their interests.
Call Money is ruling around 6%.
While the stock market appears strong at
times there is so much uncertainty in the situation that there is not a great amount
of courage as to any bull movement.
At the moment appearances indicate that the
railroad men are thinking more soberly and may :IA strike, although Californis has
been for two or three days practically parnlyzed so far as transportation and mail
facilities are concerned.

The steel corporation employes are restless and indications are that the
steel people propose to fight any strike even to the point of shutting down plants.
Things are moving along quietly at the bank and we expect now to mail the
chart to-morrow to all the banks, the details, chart, communications, etc., having
been approved yesterday by the Executive Committee.
We have received up to date subscriptions for Series 0-1920 amounting to
about $160,000,000. of which $83,000,000 results from an exchange by the Bank of
Japan of certificates of this amount maturing September 9th and 15th for the new
Apparently we are having thus far on this issue about the same
This issue is optional and no quotas
subscriptions as we had for the last one.
have been assigned.




Mr. Sailer has been working on the contract for a post office station in the bank
and has secured authorization for a station on the twenty-fourth floor of the buildThis office will handle ordinary corresing for the exclusive use of this bank.
pondence, outgoing and incoming registered mail and parcels post shipments to Washington in registered pouches.

The chart has finally been published and I am mailing you one of the sample
advance copies, knowing that you will be much interested in the form in which it is
put out and we hope that it will be satisfactory.
The stock exchange is closed to-morrow and Monday and so there will be
practically no business until Tuesday next.
Best wishes.
Sincerely yours,

Benjamin Strong, Eso.,
London, England.

September 2, 1919.
My dear Governor:

I am mailing to-day circulars #199,"Official Signatures," and #200,"Organization Chart," together with copy of instructions to the officers, tellers, chiefs,
etc., as to the internal operations.

The charts were mailed out Saturday and are undoubtedly in the hands of
most of the banks to-day.

Matters are running along quietly in the bank and the stock market is marking time alternately up and down, affected mostly by the disturbed labor outlook.
I think the general impression here is that some of the Republican leaders
are playing rather poor politics in the matter of the Treaty and as there is evidently strong difference of opinion in the majority party, the whole Treaty situation is
uncertain as yet.

You probably have heard that James H. Perkins has associated himself, beginning to-day, with Montgomery & Company.

I understand Mr. Rich is in California,

so that there have been some changes at the National City Bank.
A new State bank is being organized under the name of the New York City Bank
and I believe a State charter-has been issued to them.
Mr. Beyer seems to be gaining and is apparently in very good condition.

Mr. Sailer has given instructions to gradually reduce the force in the Bond
Department as they seem to be somewhat overloaded.

There are a number of adjustments to be made concerning the tenants in our
buildings, all of whom have not yet been provided for.

Work is being done along this

line, however.

Mr. H. Bacon has accepted the position as assistant to the Building Committee
and the Professional Adviser in connection with the judging of the plans.
We are sending your mail to London and if you wish it otherwise, kindly advise.



Best wishes.

Very truly yours,

Benjamin Strong, Esq.,
C/o Morgan, Grenfell Company,

22 Old Broad Street,
London, E. C.,

September 4th, 1919.

My dear Governor:
I received your letter dated August 17th from Paris concerning
the handling of the gold with the banks in Brussells and Amsterdam and I have
turned same over to Mr. Case and other officers.
In the absence of Mr. Jay, who has been at Kipawa, P. Q., Cansda,
one of the northern points of the Canadian Pacific Railroad, your letter to
him under date of August 21st has been handed to me to answer.
Do not take valuable time to write us any details because we will
understand how busy you are and your health is much more important thah our
being advised of events, except the most important.
Will see that a copy of the Bulletin and other matters are forwarded to Monsieur F. Hanker, C/o Banque Nationale de Belgique, Brussells.
I will also brine: the matter of the printed weekly stateMent before the officers.
The chart is now in effect and we are operating under it.

Mr. Strauss writes, under date of September 2nd, "I had a tnlk
I asked him whether he could not arrange so that
with Mr. Remick on Sunday.
we could get a comparison for four or five successive weeks of our loan stateI pointed out that this would carry us over to the time when
ment and his.
Mr. Strong would return 11d that I would be perfectly willina,if the comparison
showed a fairly steady variation between his item and ours, to take up with
Mr. Leffingwell the question of the discontinuance of the loan reports.
am waiting to hear from Mr. Remick."

Mr. Hendricks went to Utica yesterday to attend n meeting of the
transit man of the Utica banks to arrange if possible for a city clearing,
the balances to be settled by telegraphic advice to this bank and credits or
debits entered on our books each day as cleared.
We anticipate rather easy money rates during September, but as discussion of bills pertaining to the return of the railroads to private ownership is now beginning in Congress and the President is on his trip throughout
the country and there is to be a prospective conference of Labor and Capital
in October, which may develop more or less radical views, we anticipate that
Later on we should have comOctober and November may be somewhat uncertain.
I judge that the Treasury Department will not want
paratively easy money.
us to change our rates for some time yet.


Do not overwork in your zeal to accomplish a great deal in a short
Regards from all the officers.

Benjamin Strong, Esq.,
London, England.

Very truly yours,



September 5, 1919.

My dear Governor:

Your long letter from the hotel Astoria, Brussells dated August 6th
I read the letter to
came yesterday with some mail dated ten days later.
the Executive Committee as I knew they would be interested in the details of
We shall anticipate hearing a more detailed report on your
your journeying.
return and hope that the opportunity will be given us.
Certainly it was a most interesting letter which you sent to us and
We are beginning to feel
impressed us with the mixed conditions in Europe.
the effect here, I think, of the demoralized foreign exchange in that the export business is falling off and some orders, I understand, are being canceled
because of it.
I am enclosing herewith some notes I have made of the statements of
bur. Leffingwell when he was here the day before yesterday, thinking that what
he states may be of interest to you as containing an expression of his views
and those of the Treasury Department,
lir. Jay reports a fine, restful time with three college friends up
He expects to start homeward September 8th, going to Bufin northern Canada.
falo where he says he will remain three or four days making that his headquarters but visiting some of the Stats banking institutions in the western part of
the State.

Mr. Case attends the Monmouth County Bankers Association meeting tomorrow at Asbury Park.
Dennison & Curtis have sent out their announcements and have opened
their offices in the aoolworth Building.
The vacancy in the, Federal Reserve Board was filled by the election
of Henry A. wiohlenpah of Clinton, Wisconsin, he being president of a bank of
I am enclosing ticker report of to-day giving
$50,000. capitalization there.
you some detailed information concerning him. The rest you can imagine.

The chart is in operation, having been approved finally and completely
by the directors and I believe that we will soon function very satisfactorily
under it.

Stock speculation goes on but pools are operating as usual.
little attention apparently is paid to the money market as they seem to be able
to secure what loans are necessary although the loans are $100,000.000. or so
below the high point.

We anticipate that the Treasury Department will make very heavy demands
upon us on September 15th to tide them over for a day or two, probably heavier
than ever but we shall try and be in shape to handle it all right.
Best wishes.
 Benjamin Strong,
London, England.
Federal Reserve Bank of St. Louis

Sincerely yours,



(OAT e-r-c,elf)


He stated to the directors: "I believe there will be a sharp contraction
The foreign ex-

of exports which has already begun,land hence, later, of business.

change situation is very serious and will hamper exports materially.

This will af-

fect the factories, especially those which have increased their capacity materially
The cutting down of the exports will affect the domestic busi-

during the year.

nese causing a marked contraction.

approaching when there

It is quite evident that the time is rapidly

will be easy money at lowee rates.

Upon being asked whether, in his judgment, the Federal reserve 'peeks should
reduce their

rates soon this fall, he stated that the Federal reserve banks should

not accentuate deflation by raising rates, that he believed the defletion would occur
rapidly but normally

without raising the


Fr the Federal reserve banks



ee-tment to borrow for the Government's needs
at high rates of interest on uhort term eeich should. notAthe cane.

their rates would force the Treasury D

The Government has no intention of funding its obligation at

high rates and

if it cannot fund them at low rte e it will continue the policy of puttine out


term obligations.

Upon beine asked if the easing

1st, he stated: "I think the Government


is likely to occur before January

operations are a very /greet factor in the

money market and the general financial situation." The heavy payments of
September 15th will prevent any stringency probably

neutralize the crop

the Govt.

in September as these payments will


in October and November, hover, there may be some strineency due

meeting of the

committee of

45 on relations of Labor and Capital


to the

railroed and labor

situation, etc., coming at a time when the highest demand of the crop period will be on.
From now on, the Government borrowings will be

*500,000,000 per


cut in

half, probably

not over

The Treasury disbursements for the next four or five weeks will aggregate
about $2,000,000,000. all of which is now provided for by the estimated $900,000,000.
tax receipts September 15th and over $1,000,000,000. deposited in le?nks to meet these

We have been very much gratified at the subscriptions

to the issue of C-1920

which was put out for optional subscriptions without any assignment to banks of quotas

as previously and ee have sold more certificates than
His position was evidently very

in the preceding issues A and B.

strongly against any

advance in discount rates

on the part of Federal reserve banks until the Government financing was practically over.
He stated he had e plan which he would present to the officers for their consideration

To the officers he explained the situation as he did to the directors regarding the September maturities and the provision made to meet them.

He stated that it

as his purpose to call for redemption September 15th about $450,000,000 of certificates
which would mature October 7th and this would tend to ease the money situetion.
While acute apprehensien bad been allayed somewhat by tbe President's appeal
to labor, he believed that in October we might have this apprehension

renewed and


haps be even worse by reason of the different conditions which would then be in existence.
He stated that the demands of foreign Governments were being cut down and
that the disbursements in August amounted to )nly about $750,000,000.
He stated that while the Government expected that the balance of the Government's

floating indebtedness would be

refunded at high rates, there was no justification for

this feelingi=e9Oive Government Violk

in 8 very

strong position financially and



floating debt by September 15th would amount to only about $5,000,000,000.

The Government contracts have been largely

the circumstances

settled except some large ones,

connected with which would require a long period, perhaps, to settle,

and they might have to be determined by the Courts

He thought the present a favorable opportunity to put out some long time cer-

tificates and perhaps at
about normally.


lower rate

as he believed

HO plan as outlined was te

lower rates would soon be brought

issue four series of certificates all

dated Seetember 35th as follows:

Certificates bearing 4% interect 8 monthelit
4 1/2%







to allot in full, make no minimum offer, make the offer subject to withdrawal at any time.
He felt that there would be no chanee in the Revenue Lem during the present

administration and that receipts from taxes therefore would be much in excess of the
Government's expenditures and would gradually but surely pay off the floating debt of
something over $3,000,000,000, of which $1,500,000,000 would mature betieweolenutery

and February let.

Should his piens go through and a reaeonable sale remit he did

not expect to issue any certificates probably before about the

first of November end

those might be for four or five months maturit* at the rate of poseibly 4 1/4%.
any event not over $250,000,000 oc certificates would have to be sold.


He seemed

optimistic over the situetion.

At a conference of bankers in the afternoon he outlined his plan and the
reasons which led him to suggest it and after careful consideretion of the subject and
an exchange of views the impression seemed to be quite general that any issue carrying
4 3/4% or beyond one year maturity was not advisable.

Some expressions were to the

effect that an issue at 4% would not be eell taken but there was very general agreement
that en issue for one year at 4 1/2% would be subscribed for eery liberally, perhaps
to the amount of $1,000,000,000.

apparently before leaving he came to consider favorably for the moment at


least the putting out of two issues, one for 6 months at 4 1/4% and the other for one
year ,rt, 4 1/2%.

It is exi,eoted that there will be .5n tnnouncement not later then

konday, September 8th, as to the i8SUOE, the rate and the maturity.



October 20, 1919.

Dear Governor Strong:

I was much pleased to receive your cordial note of October 16th in reference to my retirement as deputy governor.
If my connection with the bank in this position has
served, as I trust it has, to enable you to secure opportunity
for the development Df greater reserve strength and thus continue
the fine, constructive work you have done in the development of
not only the Federal Reserve Bank of New York-but of the system
at large, this will always be a. great satisfaction and a pleasing
memory to me.
It has been a privilege to be associated in the development of the Federal reserve bank during its formative period
and if, as you state, I have secured the respect and regard of the
bankers with whom I have been brought into contact in connection
with the work, this will indeed be a fine compensation for the
That I value greater, however, is tbe friendships which
I believe I have developed not only with you but with the directors and officers of the bank who have treated me with such consideration during these past years and I trust that the friendship
thus developed may continue throughout the years.
Sincerely yours,

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



Dear Governor
At the dinner given to me at the University
Club by the Directors Wednesday night Mr. Jay handed me your
letter of December 29th, and I feel most grateful to you for
the personal expressions contained therein concerning my
work at the bank in New York.
The tributes they rendered to me were really
overwhelming and I have not recovered from them yet.
All of the Directors except Mr. Towne, who was ill, were
present, Mr. Hepburn was unable to attend, but Mr. J. P.
Morgan and Messrs. Stone and Alexander, as well as Deputy
Governors Case and Sailor, were present, making fourteen
in all.
They presented me with an engrossed set of the
Resolutions which the Directors had passed, and Mr. Woodward
quite outdid himself in his speech and in his presentation of
the "Treasury Ink", a giftwhich I value most highly. It was
mighty nice of you to think of giving me the information concerning this replica of the original 'stand and with the inscriptions on it it will be one of my most valued possessions.
I feel that the thought of this is due largely to you, although,
of course, I have not been so informed, and it only adds to
the other obligations which I owe you during the years of
our association together.
One of the great surprises of the evening,
and, as you can imagine, a most happy one to me, was Mr.
Alexander's announcement of the gift by members of the
Liberty Loan Committee, and I cannot tell you what sincere
pleasure it gave me to have this wonderful tribute from
them, and I want to thank you, as one of the participants
in this gift, which will not only give pleasure to me but
will be of much benefit I trust to Cornell University and
its future work.

I am enclosing a copy of the memorandum which
accompanied the gift, which memorandum, I believe, is to be
engrossed and sent to me later.
This evening will ever be the most memorable
one in my life, and the personal tributes from the friends
gathered aro..Ind that table will never be forgotten.



May I express to you, my dear Governor,
my sincere appreciation of your part in this
event ?

With very best wishes, I remain
Sincerely yours,

Benj, Strong, Esq,
Castle Hot Springs

January 10, 1920

As an enduring testimony to the unselfish, devoted and

distinguished service in


rendered to the Nation at its

financial capital during the critical period 1916-1919 by
and with appreciation of the sterling character and attractive
personality that have won for him our respect and esteem,
WE, his recent associates in the

by our joint subscriptions hereby establish a PERMANENT FUND
to bear the name and to perpetuate the memory of

of which he is an alumnus, trustee and ardent well-wisher,
We give this Fund to CORNELL UNIVERSITY with the understanding

that MR. ROBERT H. TREMAN shall have the privilege of designating the
use to which the income frdm this Fund shall be applied.

J. S. Alexander

Charles H. Sabin

Geo. F. Baker

Jacob H. Schiff

Allen B. Forbes

Benj. Strong

Walter E. Frew

F. A. Vanderlip

G. W. McGarrah

Martin Vogel

J. P. Morgan

Albert H. Wiggin

Seward Prosser

William Woodward



March 17, 1920.
Pear Sir:

At the last meeting of the Board of Trustees
of Cornell University announcement was made of the presentation to the University of 1t21,500, to bear the name
and perpetuate the memory of Robert H. Treman, by his
of the
recent associates in the
Second Federal Reserve District,- the gift being on the
understanding that Mr. Treman "shall have the privilege
of designating the use to which the income from this
fund shall he arplied".


The Board of Trustees accepted this gift upon
the terms indicated and voted that their sentiments of
appreciation be conveyed to the donors.
On behalf of the Trustees and on my own behalf
I now beg to express to you our thanks for your share
in this gift to Cornell University.
Very faithfully yours,

Benja7.2in Strong, Esq.

Federal Reserve Bank
15 Nassau Street
New York City


My dear Governor
I have thought of you many times since
you have been away from New York, but have kept in touch
through Mr. Jay, Mr. Case and others, and am delighted to
know that you are gaining steadily, and shall hope that
in the fall of this year you will be back in New York ready
to assist in such constructive work as will tend to the
best development of the Federal Reserve System.
I confess to an occasional pessimistic period
when I think of the changes which have taken place in
the personnel of the Federal Reserve Board, and especialHowly of the efforts to work politics into the system.
ever, I am a believer in the ultimate triumph of truth,
justice and right, and believe that perhaps we will emerge
from this period of malicious attacks a stronger and better
system in the end.

We had scme very strenuous debates concerning the
rate in March and April, and I still am of the opinion
it would have been better had we advanced t E rate to
per cent, the latter part of March, when t or felt
it should be done.

At present it would seem as though the publicity
which has been given to the discussions of the Federal Reserve Council, also the Governors' Conference, and the
warnings which have emanated frcm many sources as to our
inflation tendencies, have resulted in the present period
This probof hesitation and uncertainty as to the future.
ably is all for the best, but I am inclined to feel at the
moment that we shall have to have higher prices for manufactured goods based on the present high costs of labor
as long as labor costs continue an the level.
The trade balance against us for the first four
months of the year is certainly oppressive, and, with the
many other currents floating into the main stream, makes
an interesting period.

I am glad that Mr. Sailer is thinking of going
abroad for a month or so as I think it will do him good,
and I hope that he will have an opportunity to post himself as to English banking methods, He has certainly done
a great work at the Federal Reserve Bank and is deserving
of the greatest praise for it,

I have just heard from Mr. Peabody, who has been ill
with lumbago but is hoping to be able to go down to the University of Georgia for their Commencement in June.
Rumor states that Mr. Alexander is to retire as president and MY. Ward is his choice for his the National
Bank of Commerce.
I wish you could have been here and seen the boat race
between Yale-Cornell-Princeton, but as it coul d not be so this
spring I shall hope yet that you will give us the pleasure of
seeing you again j.n. Ithaca for some foot ball or other athletic
ent return
obliged to

With this will go my very best wishes for your consistMany times these periods in whichwe are
to health.
withdraw from active business for a time are most
because they give us opportunities for thought and
upon the things which are best worth While in life.

May Heaven's blessing rest upon you.
Sincerely yours,

Governor Benj. Strong
Cragmor Sanitarium
Colorado Springs, Colo.
May 29, 1923


My dear Governor

I am rejoiced by learning of your steady
(though I assume to you it appears slow) improvement, and
that we my look forward to your resuming your duties by

November 1st

I feel that your absence is a distinct loss to

the Federal Reserve System in the important matters which
come before the Reserve Board and the bank. So far as the
details of' the bank are concerned, I think the present officers are handling the same very satisfactorily, but in
matt ers affecting the future of the Reserve System we need
your advice and influence, and I hope that you will return
strengthened and benefitted so that you can represent the
bank in such important rru.tters
You are undoubtedly being informed as to par

collection matters and the efforts that are being made to
continue the scientific collection system.
I believe that you will be much pleased with
the izogress made in the bank, even though it has been
slow, and that you will feel that in the end it will be
a wonderful building ih which to transact the bank business.
Keep up the good work as we are much interested

in you and have a Sincere affection for you.
Sincere ly,


Hon. Benj.Strtng
Cragmor Sanitarium
Colorado Springs, Colo.
Septemb er

18, 1923



February 28, 1925.

Mr. Benjamin Strong, Governor,
Federal Reserve Bank,
New York, N. Y.
My dear Governor:

Your letter received this morning was one of the
most pleasant surprises uhich I have had in connection
with the testimonial dinner of the IthHch Chamber of
Commerce, because it was unsolicited and unexpected.
I understand that the Committee of Arrangements
wrote to a number of people and secured letters which
Prebident Farrand of Cornell, who was the toast-master,
read at the banquet, but I assume they did not write
to you because you were away. Mr. Jay wrote a very
nice letter, as did most of the others to whom they
The Committee has turned over these letters to
me and I certainly appreciate the kind expressions contained in them. The picture painted was altogether
too one-sided, because had they had the other side
painted of which I know too well, there would have
been the record of misdeeds and the failures of my
life, which would have changed greatly the picture.
I am indeed very grateful, Governor, for your
kind expressions, evidencing the deep friendship which
has developed between us as a result of our association
since the opening of the Federal Reserve Bank.
I value
this friendship and hope that it may continue strong,
deep and abiding.
Cordially yours,








February 17, 1926.

Benjamin Strong, Esq.,
Oasis Hotel,
Palm Springs, Cal.
My dear Governor:

It is refreshing to know that you are actually
resting and having an opportunity to strengthen yourself against the ravages of the New York City climate.
To those of us who are 'watching our step/ on icy
pavements and having the thermometer ranging from ten
degrees below to thirty above zero, the thought of
being in a summer climate is very alluring, and I hope
that you will 'bask in the sunshine and gain every

I think Mr. Alexander was much pleased to be
elected to the Federal Reserve Uouncil and that the
other party was disappointed, although recognizing
You are being
that he had been very well treated.
informed undoubtedly as to all the bank's detail and
I have nothing to offer except greetings and sincere
good wishes that you will be much benefited by the
change and that' you will stay long enough to have the
A week
improvement stay with you after your return.
or two longer will not make much difference to the
bank but may do much to you. Try it.
Very truly yours,

Ithca, New York,
February 21, 1927.

Hon. Benjamin Strong,
Stuyvesant hoad,
Biitmore Forest,
Biltmore, N. C.

My dear Governor:

It Was pleasant to receive your letter of February 16 but
please do not ever exert yourself to write me.
I can give you very
little of importance but can convey my interest in your welfare and
hope that you will soon be yourself again. Mr. Sailor told me that
you must be improving because instructions and communications began
to .come to the bank quite regularly now., which was always to him an
indication that you were feeling fit.
Sailorts son has just
graduated from Cornell and is ncy, continuing his work in Ithaca in
a preparatory medical course.
I had a letter from Shepard Morgan the other day and it seemed
quite nice to hear from him again.

Things am moving along apparently very smoothly at the bunk
and the Directors feel that you wili,with the new Chairman and
Deputy Chairman have real assistance and cooperation in the management of the ban's affairs. Personally, I hope that you will be
able to go to ngland and the Continent again this spring or summer
as I believe the development of personal relations with the officers
of the central banks and occasional conferences individually, if not
collectively, are most helpful to the financial interests of this
You personally have done a remarkable work along this
line and I trust that it may be continued as it is most essential
that the financial interests shall cooperate and keep in close
touch as a means of amalgamating the interests of the various

expect Mrs. Treman will be at Kenilworth Inn, Asheville, for
a day or so this week, motoring down with my brother-in-law and his
daughter enroute to Aiken.
I earnestly hope that your gain will be very rapid now and with
sincere good wishes, I remain

Very truly yours,

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