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nENJ, STRONG, .11 PERSONAL, MWORANDUM. Some seven or eight years ago there was organized in the City of Washington a concern known as the United States Trust Company. president was a Its first Mr. Rixey, of Alexandria, Va., a brother of the late Congressman Rixey of vit.- ginia, and also of the late Surgeon General of the U.S. Navy. field which was somewhat already over-banked, satisfactory. its progress was slow and unAt one time Mr. Its management has changed several times. D. N. Morgan, Treasurer of to its the last the United States under administration of About three years ago Mr. Eldridge E. President Cleveland, was its president. Jordan eucceeded Entering a Mr. Jordan had entered the banking field presidency. of Washington as president of thlifferchants and Mechanics Savings Bank, stitution was absorbed by the United States Trust Co. and kept open as which inone of its branches when Mr. Jordan succeeded to the presidency of the United States Trust Mr. Jordan's Co. not management of the Merchants and Mechanics Savings Bank had been eatisfactory to the office of the Comptroller of official one time that called together to take away from him all its board of making of a loan involving the had a personal On another occasion and at directors and required them This action powers relating to the making of loans. gray out of some transaction interest. the Currency, the in which Mr. Jordan Gomptrollereer-the-Curreneyi when Mr. Jordan had purchased 1,000 shares of the capital stock of the Commercial National Bank of Washington, utilizing the assets of the Merchants and Mechanics Savings Bank for that purpose, the Comptroller of the Currency required distribute the stock so purchased ants & Mechanics Savings Bank, large a part and to take it out on the ground that of the assets of the Merch- it was improper to of the assets of that bank at a price considerably him to invest so in excess of book value of the stock purchased. Mr. Jordan had been in control of the United States Trust Co. only a few the months when its board of directors ousted him, largely because he had conducted its affairs in violation of the orders of the board of directors. succeeded as president of the United States Trust Co. by Ex-Senator Scott, of W. Va., who, however, remained at the head of the few months, he in turn being succeeded by Mr. Jordan year, Mr. Jordan having regained He was at Pathan B. institution only a the beginning of a new control of the bank. He remained president of the Trust Company until May 1913, when he was succeeded by Hon. Lawrence O. Murray, who had just retired from the position of Comptroller of the Currency. Upon retiring from the presidency of the Trust Company in May 1913, Mr. Jordan became chairman of the board of directors of that institution, the dominant factor in it. thus remaining It is reported that Ur. Murray retired from the presidency of the Company in August 1913, but no announcement of the fact was made at that time and the fact has only been ascertained since the affairs of the Trust Company were taken over by the Munsey Trust Co. of Washington, on Nov. 21, 1913. For several years there have been unfavorable rumors as to the condition of affairs in the United States Trust Co. lirOwen T. Reeves, made an examinatio ing correction. Trust Company. ington opposed to f the Company, reporting conditions requir- His report was strongly combated by those in control of the At the same time there were two or three other banks in Wash- Bank Examiner Reeves concerning their affairs. because of recommendations made by him Mr. Reeves was transferred to the Chicago district 6 and was succeeded by Mr. Samuel M. Hann, a most thorough-going and conscientious bank examiner. His findings sustained those previously found by Mr. Reeves, and it is understood he made reports to the office of the Comptroller of the Currency recommending the correction of certain evils said to exist but his recommendations were never pressed by the Comptroller. policy of those identified with Comptroller of the Currency, the United States Trust Co. with the result that when he in the Company; It became the to cultivate the retired from that of- flee in May 1913 it was to become the president of the Company. Mr. Hann retired from the position of Bank Examiner in midsummer 1913 to become identified Prior to his retire- with a trust company in Baltimore, Md. ment it is understood that Mr. John Skelton Williams, Assistant Secretary of the Treasury, who has largely dominated the office of the Comptroller of the Cur- rency since the incoming of the present administration, instructed Mr. Hann to make a thorough examination of the alleged to exist therein. Company with a view to Mr. Hann's reports are Comptroller of the Currency. correcting the evils on file in the office of the Upon his retirement from the position of Bank Examiner for the District of Columbia, he was succeeded by Mr. Richard W. Goodhalt, the present National Bank Examiner, well ient known as one of the most efficFor five examiners in the service of the Comptroller of the Currency. years he was bank examiner in the Philippine Islands and for another five years bank examiner at large in the United States. His specialty while employed in this country has been the mending of broken banks and the banking situations. the United States handling of difficult Mr. Goodhalp concluded his examination of the affairs of Trust Co. about Nov. 17th, On Tuesdat, Nov. 18th, late in the afternoon, the Acting Comptroller of the Currency, Mr. Kane, called a number of the leading bankers of Washington on the telephone, requesting that they meet him and the national bank examiner at the latter's office, 1422 F Street, At this meeting were pres- at 8 o'clock P.M. ent the Actiing Comptroller, Mr. Kane, the Bank Examiner, Mr. Goodharet, the legal advisor to the Comptroller of the Currency, Mr. Elliott, and the presidents of the leading trust companies in Washington and of several national banks. condition of affairs in the United States men by the Acting Comptroller, Comptroller. the Bank Examiner and It was represented to the bankers stock of the United States Trust Co., Trust Co. was laid before the these The gentle- legal advisor to the assembled that the capital amounting to 4,200,000, was impaired to This impairment resulted from an artificial the extent of about 4,140,000. Inflation of certain real estate carried by the Company, which on appraisement by competent judges was held to be of less value than that at which it was There was also, according to the report carried on the books of the Company. of the bank examiner, above $600,000 in doubtful bills receivable, and $400,000 in second mortgage The bank examiner stated that he believed, however, notes. that on slaw liquidation perhaps as much as $300,000 of the doubtful paper might be paid, and he figured that with slow liquidation all the depositors of the Com- pany could be paid. The deposits were in excess of $6,000,000 and the number The Acting Comptroller of the Currency took of depositors was given at 55,000. the position that the Trust Company must either at once make good its impairment of capital or go into voluntary liquidation, otherwise he would feel justified The bankers present in closing its doors. were of nothing the opinion that could be done to save the Trust Company as a company, because it sloe well under- stood that the ownership of the stock rested in bank loans, and on an the stock it was exceedingly doubtful if the stockholders could make pairment. cf good the im- It was the disposition of a number of the bankers present to do what they could to save the depositors from embarrassment, and there was some discussion as to what might be done by the associated banks of Washington to pay off one-half of the deposits at once and the remainder as soon as the affairs of the Company could be The attorneys liquidated. for the United States Trust Co. were called into consultation with the Acting Comptroller of the Currency, who comp municated his views to them. They refused to close the institution and declared it to be their intention to combat the findings of the examiner, whereupon the meeting adjourned. The next morning, Nov. 19th, the Assistant Secretary of the Treasury, Mr. John Skelton Williams, assembled in his office certain of the directors of the United States Trust Co. and others, including the Acting Comp- troller of the Currency, the bank examiner, to the Comptroller, Mr. Elliott. Mr. Goodhardt, and the legal advisor He sustained the position taken by the author- ) ities in control of the United States Trust of the bank examiner. Co. and discredited the findings In reviewing the criticisms of the examiner, he justified the inflation of the real estate values in the accounts of the Company and also questioned the accuracy of the examiner's reports as to certain bills receivable which had been characterized by the examiner as "doubtful". It appeared at this time that the Assistant Secretary of the Treasury had thrown the Acting Comptroller of the Currency and the National Bank Examiner out of court, and so it was understood during Wednesday, Thursday and Friday, Nov. 19th, 20th and 21st. At the meeting of the Acting Comptroller with the local bankers on the night of Nov. 18th, it was agreed among the bankers that the authorities of the Stock Exchange should been seen and that brokers should be pressed not to deal in the stock of the United States Trust Co., so that no alarm might be spread by sales of the stock on a falling market. Notwithstanding great pressure to sell on the days mentioned, there were no transactions on the Exchange, although it is well understood that certain of those identified with the United States Trust Co. attempted to make sales. It is quite certain too that maid-. ere acquainted with its affairs availed themselVes of the opportunity to withdraw their deposits, and the news gradually spread to others having accounts with the Company. By lo'clock Friday, Nov.21, visible runs began at the of- fice of the United States Trust Co. and at its several branches. Long lines of people were gathered in front of its offices, where they remained even after the close of banking hours. Many persons stood in line all night in order to be in position to withdraw their deposits at the opening of business Saturday morning. Late Friday afternoon there were rumors that negotiations were being conducted on behalf of the Munsey Trust Co. to take over the affairs of the United States Trust Co., and at 10 o'clock Friday night announcement was made by Mr. Olivier, acting for Mr. Frank A. Munsey, to the effect that the Munsey Trust Co. had bought control of the United States Trust Co. At 2 or 3 o'clock -.6- A.M. on Saturday, the 20th instant, bankers representing the Clearing House of Washington and trust company presidents were called to a room in the Shoreham Hotel by representatives of ika Mr. Munsey. These representatives included Mr. Olivier and Mr. R. Lancaster Williams, of Baltimoee, who is a director of the Munsey The latter had been a leading factor in the negotia- Trust Company. tions looking to the absorbtion of the United States Trust Co. by the Munsey He is a brother of Assistant Secretary of the Treasury, Mr. John Trust Co. Skelton Williams, and has spent much of his time in Washington and at the office of his brother in the Treasury since the Treasury in the spring of the the latter became Assistant Secretary of present year. The Wunsey Trust Co. was organized about six months ago, and Mr. R. Lancaster Williams, of Baltimore, acted as financial agent in placing the stock that company. of Ever since he has been closely identified with its management and in soliciting accounts for that company and in up-building its business. Through his brother, Mr. John Skelton Williams, he has been given many opportunities to meet bankers of the country as they have come to the Treasury at Washington on official business with the Assistant Secretary, Mr. John Skelton Williams. It was represented to the bankers called at this early morning meeting that the condition of affairs was such that the Munsey Trust Co. had agreed to take over the business of the United States Trust Co., pay its depositors and liquidate its assets. If anything should be left after the claims of deposi- tors were satisfied there would be a distribution to the stockholders of the United States Trust Co. either in cash or in stock of the Munsey Trust Co. In order to meet the demands of depositors the United States Treasury had agreed to deposit #1,000,000 in the 11 national banks of Washington at the opening of business, Saturday morning, Nov. 22, the national banks in turn to deposit the money at once in the Munsey Trust Co. and the Munsey Trust Co. to secure the same by depositing collateral satisfactory to the Secretary of the Treasury with -7 the Treasurer of the United States. It was also represented to the bankers assembled that if the Clearing House banks of Washington were to agree thus to become the conduit through which this #1,000,000 fund should be placed in the Munsey Trust Co. that Mr. Munsey himself would deposit #500,000 in cash in the Munsey Trust Co. at the opening of business Saturday morning. Mr. Munsey being in the city, the bankers present requested that he sign a statement to the effect that he would make this deposit on his own account, but his represta- tives present refused to have Mr. Munsey awakened, on the ground that he was ill, and gave positive assurance that what they represented in this particular would be faithfully carried out by him. Upon these representations being made, the local bankers agreed to receive the Government fund above mentioned and to stand good for the same to the Treasury, they being the only concerns in Washington which cold under deposits. the law receive money from the Treasury as public When the vaults of the Treasury were opened at 9 o'clock Saturday morning, Nov. 22, the #1,000,000 in cash above mentioned, was withdrawn therefrom and transferred directly to the office of the United States Trust Co., which immediately began the payment of deposits to those withdrawing their accounts. Al]. day Saturday the runs continued, and at 4 o'clock Saturday afternoon represen- tatives of the Clearing House banks met, there being A. Munsey, President of the.Munsey Trust Co. present with them Mr. Frank It had become known that Mr. Munsey had not deposited #500,000 in cash in the United States Trust Co., as promised by his representatives. Mr. Munsey was interrogated as to why he had not made good the assurances made the local bankers. He replied that he did not choose to do so-- that he regarded the proposition as silly-- that he was a judge of human nature-- that the difficulty was over and reason why the local bankers should hold him on a technicality. that he saw no Besides he had had no time to prepare himself to deposit #500,000, and besides his representativa had no authority to make such assurances for him. prOmises was complete. His repudiation of their Since the events above described, it has become known that the Munsey Trust Co. did not deposit its own collateral at the Treasury to secure the *1,000,000 fund advanced through the 11 Clearing House banks of Washington, but that it did deposit *1,610,000 of the assets of the United States Trust Co., whose affairs it had taken over under the circumstances above described. The Assistant found occasion Secretary of the to take to task Treasury, the local Mr. John Skelton Williams, has bankers who questioned Mr. Munsey re- garding his failure to make good the promises of his representatives, and has even suggested that an apology be made to Mr. Munsey, and has attempted to put a construction upon the promises of the representatives of Mr. Munsey at variance with the understanding which the local bankers have as to just what those premises were. At 9 O'clock on the morning of Saturday, Nov. 22, Mr. R. Lancaster Williams delivered in person to some or all of the local banks the written guarantee of the Munsey Trust Co., signed by its that the Munsey Trust Co. president, Mr. Frank A. Munoey, to the effect would stand good for the deposit of *1,000,000 Govern- ment funds advanced to it by the United States Treasury through the local banks. It is understood that Mr. R. Lancaster Williams' efforts in negotiation with the authorities of the United States Trust Co. were prolonged and arduous, and were fully matched by the energies of the Assistant Secretary of the John Treasury, Ur. Skelton Williams, in allaying this latest financial trouble in Washington. The net result of these operations is that of the *6,000,000 deposits of the United States Trust Co., from *4,000,000 to *5,000,000 have found lodgment in the Munsey Trust Co. and have been obtained by that company without the use of any money upon the part of Mr. Munsey or the use of any of the collateral of the Munsey Trust Co. in securing the deposit of Government funds with that institution, a result cooperation which could only have been accomplished by extremely effective between the United States Treasury authorities and the authorities of the Munsey Trust Co. In repudiating and discrediting the work of the officials of the office of Comptroller of to act question has Currency, the morale and spirit been seriouslyeeffected. ing corps has ington the of the national bank examin- In selecting one institution in Wash- as liquidating agent under the circumstances been raised as to whether the accomplished otherwise than through been Government officials and In explanation of the selection of and the support given to it by the Treasury, the following official statement was Treasury, and is indicated could have collusion between the authorities of the Munsey Trust Co. the Munsey Trust Co. results above recited, grave put out by the office of the Assistant Secretary of the to be found published in Mr. Munsey's paper, the Washington Times, Saturday, Nov. 22, 1913: The situation "There is no need for apprehension. over which the Department and financial interests have been working has been fully met by the Munsey Trust Company. The Munsey Trust Company was the best qualified bank in This company had the Washington to handle the situation. largest reserve fund-- more cash on hand-- than perhaps any The cash at hand is sufother Washington situation, the Department is fully assured. ficient to meet any Approval has been given to the merger of the United States Trust Company with the Munsey Trust Company and every dollar is One million dollars in cash was deposited with the safe. eleven national banks of the city this morning, upon the receipt of proper security by the Treasury, this money going through the Clearing House .to meat the needs of the Munsey Trust Company. This money was deposited by the Department in pursuance of the Administration's policy to aid any inqitut,ion knome to be sound Financial and good in meeting an unwarranted or ed,igefe4SUWrun. Money affairs throughout the country are in the best of shape. the banks are returning crop funds ahead is comfortable and many of of time." institution. AiL- rifb4. et An examination of the receipts and disbursements of the Treasury Department of the United States Government during the last ten years shows that the receipts average to run very much the same throughout the four quarters, say about 4155,000,000, but that the disbursements show heavier payments practically all years in the first quarter by something like an average of 420,000,000 over the third quarter, which is the time of smallest disbursements. The second and fourth quarters seem to run between the first and third in amount, the figures averaging say about $170,000,000 of disbursements the first quarter, and 4150,000,000 the third. Of the receipts those from customs do not vary during the quarters in sufficient amount to be worthy of consideration. If the customs receipts, therefore, are reduced during the year 1914 by a round amount, say 467,500,000, it would be safe to average the loss at about $17,000,000 a quarter. The figures available at the present moment would seem to warrant an estimate of $67,500,000 as being the probable amount of decrease in customs receipts in 1914, everything being equal. Speakers on the floor of Congress on the Democratic side, when advocating the tariff reductions, claimed that imports would increase so largely under the new tariff that the government would make up enough more on the extra amounts imported, where duties had only been decreased and the articles had not been put upon the free list, that the total revenue received would not be reduced. The figures for November and December 1913 compared with those of November and December 1912, and those of January 1914 compared with January 1913, would not seem to bear out this theory, for they show as follows: Total Imports. November 1912 December 1912 January 1913 f153,000,000 f154,000,000 4163,000,000 $470,000,000 1913 1913 1914 1146,000,000 t184,000,000 154,000,000 4486,000,000 For these three months the increase in imports is $16,000,000, oriabout 3.4%, whereas the increase in percentage of imports admitted free of duty is about 4%. In the year 1912 the percentage of customs receipts to total imports was 39.22%. For the first ten months of the year 1913, the percentage was 38.93%. Although the tariff law went into effect October 3, yet the collection of tariff on goods held in bond during October was so great that it should be included on the old basis. The months of November and December showed a percentage of collection of customs to total dutiable imports of 34.42%. The percentage for November and December 1912 was 38 1/2%. Due to the fact that November and December imports contain special classes of goods intended for the Christmas trade, it might be nearer correct to figure the difference in percentage between those two sets of months in 1913 and 1912 This would mean a loss on total dutiable imports of 4.08%. -2- Will use 1912 for the comparison, as it is the last full year bearing the old tariff. The total imports for 1912 were 41,818,000,000. If they should hold the percentage of increase shown during the three months under consideration, the total imports for 1914 would be $1,880,000,000 in round figures. Of this amount the percentage free under the new tariff, based on the months of November and December 1913, would be about 60%, leaving a total of 4752,000,000 dutiable imports. If the percentage of receipts against dutiable goods in November and December 1913 of 34.42% is maintained, this will mean a total collection of 4256,838,000 against $326,339,000 in 1912, or a loss of$67,500,000 for the year. Should there be no increase in total imports in 1914, and the reports for January received this morning would make it appear doubtful whether there will be much increase, figuring the total about the same as that for 1912 and 1913, or say 41,800,000M,the loss in customs receipts in 1914 would be 480,000,00U. In applying this decrease to the financial arrangements of the Treasury Department of the United States, it must be borne in mind that the appropriations for this year will undoubtedly be larger than they were last year, or estimates already made are out of line. Should this be the case, if the income tax does not yield more than $50,000,000 and the customs receipts fall off $80,000,000, the Treasury will be depleted by 430,000,000, plus or minus the difference in the disbursements for the two years. United States Treasury. Net Balance in General Fund. Deposits in National Banks. January 1913 February March April May June July August September October November December January 1914 February 833,000,000 44,000,000 42;000,000 42,000,000 46,000,000 97,000,000 57,000,000 64,000,000 78,000,000 91,000,000 92,000,000 85,000,000 76,000,000 66,000,000 Balance including deposits in National Banks. January 1913 February March April May June July August September October November December January 1914 February 145,000,000 147,000,000 148,000,000 141,000,000 133,000,000 164,000,000 132,200,000 127,200,000 123,400,000 124,900,000 119,400,000 111,800,000 104,700,000 92,800,000 Suppose a man in New Orleans has a 60-day bill for cotton which has been sent abroad. He could send that bill abroad to London, for collection, and, then, according to the rate exchange, they would determine the question of whether or not it was profitable to send the money over; what does he do ? but instead of that, He knows that in New York City there is a very great anolunt due from importers to the countries to which the as- cotton is shipped, for which provision must be made; so, inotcad because New York is the leading importing city, has so very large a share of our imports, instead of having his transaction with a foreign country, he mates use of that city as a clearing house, and balances off his draft against the debt which the importer in New York has to pay. That inevitably makes New York the leading center in the matter of foreign exchange. change it. No legislation can That is due to the conditions of trade. sending bills abroad to await the slow course of collection of their exchange bills and perhaps deductions for shipments of gold, bills are sent to New York, where they may be exchanged for bills drawn for payment of imports. But under such a plan as is proposed, a regional bank in any center, if it is desired to make a special4y of foreign exchange, would be under such constant danger of demands from other sections of the country that it could not make its calcUlations or make full provision for taking care of the exchange market. Without banks, a man, Ev.y in New Orleans, who sold cotton abroad, would have to have the money shipped back to him in payment, and would not have the use of it for many days. Under our present banking system, however, this would not be necessary, because New York institutions would purchase a draft, drawn by the exporter of the cotton on the foreign bankers of the party to whom he sold the cotton, and would sell the exchange so made to importers who required it. New York City acts as the clearing house of the United States for foreign items, because it is the principal city of import, and so requires the exchange made by the exporter it to the importer to pay for goods he has purchased abroad. in ord While other cities have some foreign business, yet New York City is our leading centre in foreign exchange. No legislation can change it. It is due entirely to conditions of trade. Foreign exchange bankers either hold time bins purchased by them to maturity or discount them, depending upon their requirements, and a regional system of banks would have to do the same, and often in conflict with each other. A central bank, however, would be able to base its operations upon the requirements of the country, and so would at all times stand between our business interests and those of foreign countries. EXTRACTS FROM LETTLRS REGARDING COTTON Mr. Kent. - August 31. 1914. "Ordinarily we import a great amount of cotton cloth from Great Britain, but as Germany will not take any of our cotton this year, and as probably very little will go to France, it will mean that a large part of our crop will be retained in America, which will undoubtedly result in an increased production of cotton cloth in the States, which will reduce the amount of our imports from Great Britain. Great Britain, however, will need cotton in order to manufacture war supplies, and as well to take care of the needs of her Colonies, and her cotton mills will probably be left manned sufficiently to take care of such requirements even as a war We should therefore be called upon very soon to measure. supply a considerable amount of cotton to Great Britain. While Russia had an unusually large wheat crop, yet it is going to require more with her Arny in the field than is ordinarily the case because due to destruction larger supplies are required at such times. Then again, it is very difficult to get wheat from Russia to England. Considerable has been coming through Denmark up to date but the floating mines that the Germans have placed in the North Sea have made such traffic very dangerous. It seems true, however, that the shipments so far from Denmark that originated in Russia, have been very great. Great Britain, however, does need a tremendous amount of American wheat. The amount of wheat and cotton that Britain will import between now and January 1st, provided she can keep the German Fleet bottled up, together with imports from the States of many other miscellaneous articles required, should mean a large balance in our favor based alone on exports and imports between the United States and Great Britain from now until January 1st. " Mr. Kent. - September 7th. 1914. " Regarding Birge Forbes, would say that their drafts are ordinarily drawn on Kleinwort Sons & Co. or on Parrs Bank. It would seem to me, however, that by confining them to the latter institution, which is a member of the London Clearing House freely in this market as well and whose bills can be discounted as being a safe name for us to purchase, that we can go on with our business with Birge Forbes exactly as in the past. I do not believe that their shipments will amount to enough to come anywhere near the total that we will be justified in taking of acceptances upon Parrs Bank. When in Liverpool, before I took my trip North, I called upon the English Buyers of Birge Forbes cotton. They told -2- me that they had purchased cotton of them for something over 15 years and that they never had the slightest friction with them, and they considered them reliable in every particular. This was most welcome information, for I have never had an opportunity before of talking with the people here with whom Birge Forbes have dealt. I understand that they sell all of their cotton to this house. If we can obtain cotton bills on Parrs Bank from Birgo Forbes it would seem a most excellent business at the moment for it would give us a most satisfactory exchange. The feeling here is that even if cotton acceptances are discounted freely in this market, yet that there will be very little demand from the States while the price of cotton remains as high as it is today. Many buyers of cotton here feel that because of the inability of Germany and France to make purchases, it is going to leave such a tremendous amount in America that the price must inevitably fall off very materially. As the Spinners do not need cotton for the moment they have apparently decided to wait another 30 days or so unless in the meantime the price of cotton drops materially. Of course the question of the amount which will be used here depends upon a number of developments that are yet impossible to foresee. For instance, England exports an immense amount of cotton yarn and cotton cloth which is manufactured from the raw cotton. A part of this ordinarily goes to America, but it seems to me that with the large amount of cotton that is going to be left on our hands, that we may manufacture our awn supplies to a much greater extent than is ordinarily the case. While England will need cotton for Army supplies and her own people yet her ability to export even to India and other places is going to be hampered because of the moratorium. Some accepting houses that accept for raw cotton being shipped to England, also accept for cotton goods that are exported to India and other British Colonies. On this account the merchant who ordinarily buys the cotton cloth and cotton yarn of the mills with the acceptances, is going to have as much difficulty in getting his parer discounted as is true in the case of the United Jtates buyers of English acceptances. The result is going to be that while the situation is being worked out, cotton will not be required by the mills. " Mr. Kent. - September 10. 1914. " We now come to the Cotton Houses. Nugent is willing to discount bills on all these houses with our endorsement and suggested that I wire you to that effect the other night, which I did. Yesterday, however, his Liverpool representative came down to London and we had a chat with him after luncheon. He states that the Cotton market in Liverpool is in such an upset condition that he does not consider it safe to take any acceptances on Cotton - 3- As soon Houses at present no matter what their wealth is. as the Cotton market has been re-established on some sort of satisfactory foundation, the names given in the list would be safe provided no serious difficulties arise in the meantime that affect them individually. " Mr. Kent. - September 21, 1914. "Conditions in the Cotton trade in Lancashire are India is not able to buy cotton roods of the still impossible. Spinners because its shipment of Jute and other commodities have been so interfered with that they have nothing with which to pay for it. China is buying nothing and it looks as though the Spinners are going to have a difficult time in placing their This phase of the situation must work itself out a little goods. better before there will be much demand for cotton even at low prices, and I do not anticipate much movementfrom the States until a better market can be found for cotton goods and cotton yarn. Great Britain exports three quarters of the cotton which she manufactures, which give you some idea of the necessity of finding an outside market if they would keep their mills employed. will Mr. Hurlbut. - St. Louis, Oct. 1, 1914. " English houses are buying a few small lots of cotton, but are holding back purchases and shipments until bankers abroad give them adequate banking facilities for handling their business. Recent letters from English houses to their American partners indicate an optimistic feeling as to an early resumption of usual activity in the cotton trade. The big German houses are not trying to handle cotton at present. Mr. Marcus of Heineken & Vogelsang representative at Dallas stated the head office in Germany wrote him the German Government had strictly forbidden business men from buying goods to be shipped from foreign ports, unless such purchases were made against credits already in these countries. Bankers in Memphis say firms with ausso-German affiliations are expecting to do a big amount of business later in the season. The "Buy-a-Bale" movement seems to be growing throughout the country. I note by newspapers a meeting is to be held in New York to consider the advisabiliiry in joining in the scheme. It is plain to me the plan will prove a "boomerang,' to the South. Not alone will it draw money out of principal cemtersthere, but it will postpone payments to country merchants. As compared to the millions of bales which will have to be carried over, only an infinitesimal proportion of total will be bought outside cotton growing states. Mr. Thomas West? Jr., told me today the St. Louis ' Union Trust Co., acting as depository for Jt. Louis "Buy-a-bale" Committee had in the rand to date 4250;000.00, $100,000 of which was contributed by the Busch family. Mr. Brinkley Snowden, the largest property owner and richest man in Memphis, told me Monday he estimated the assured In addition to the 2,800,000 cotton crop at 15,000,000 bales. carried over from last season. He is thoroughly convinced that cotton would have sold at 8 cts., per lb., even if there had been no European war. Mr. George R. James, banker, planter and manufacturer, in Memphis, at the beginning of the Buy-a-bale movement, sent six salesmen to visit territory in the Memphis Cotton Belt. covered 20 towns per day and were on the road 10 days. He peru, mitted these 'salesmen to offer wagons and other farm implements to cotton growers, either for cash or for cotton at 10 cts. per lb. While sales were made by his solicitors he did not receive in payment one pound of cotton. This shows the effect of Buy-a-bale publicity on the farmers; naturally, the country merchants who supply planters with necessities are the sufferers. In years 1/Paat planters have sold cotton for 5 cts. and 6 cts. per lb. and business people do not understand why farmers should not be expected to bear their proportion of present price depression. I am writing ,,'you this information as the cotton buyingmovementseems to be general It is a matter and it is misunderstood throughout the North. of fact that almost any planter in the South would be more than glad to contract sale for his entire crops of cotton during the next ten years at 10 cts. per lb., which would bring him a handsome , profit. My personal opinion is that the agitation for carrying If conditions in the the cotton crop is a tempest in a tea-pot. cottom situation were permitted to adjust themselves naturally, the operation could take place more easily without those un-economic and disturbing plans' for assisting cotton planters. The St Louis bankers mentioned in above paragraphs told me of the committee now vis'ting Vew York trying to arrange for a pool to carry cotton at ;30.00 per bale. A number of Bankers gave their approval to this plan in order to offset the Buy-&-bale proposition. These men believe cotton purchased at c;;;30.00 per bale will be good security, and think it would place the selling power in the hands of country banks and country merchants, who in turn would be able to restrict cotton planting this next season. " The -5- Mr. Hurlbut. Cincinnati, Oct. 5, 1914. " Bankers in Memphis, Louisville and Cincinnati say jobbers are worrying about collections in Georgia, Alabama and Mississippi. The latter claim it is impossible to get payment The cotton situation in of accounts awing in those States. States East of the Mississippi is different from that in Texas. In Texas a majority of cotton planters own their farms and grow to some extent, other crops. In Eastern cotton states a large percentage of cotton planters are of the tenant class and grow crops from year to year entirely through the assistance of country merchants and country bankers. " Mr. R. U. Patton, Waco, Tex. Oct. 10, 1914. " In regard to the cotton situation in Texas, it is simply this: A large crop without an adequate market. in Central and South Texas the army worm has eaten the foliage which affects the unmatured bolls and detracts from the quality as well as quantity. In North and Western Texas, the crop is good. I believe, however, the crop will come nearer four million bales than five million bales estimated in the Government report. The price on the small amount that is bought brings from 6 cts. to Some merchants are taking it at a better price in 6: cts., payment of store accounts. Much of the cotton is being held for as soon as any quantity is put on the market, the price goes down. The farmer is spoiled by the politician. He has been taught to accept too much. He is not willing to accept a loss for the year's business as other business concerns sometimes have to do. He feels at liberty to postpone payment of his own debts because the politician tells him that the price of cotton will be fixed by legislation, so it will enable him to sell at a profit. They are trying to get a law passed to limit the planting of cotton next year. This would have the effect of increasing the present crop value and teach the farmer to diversify his products. Texas is really not in such bad shape, as we have made an excellent feed crop and the prices of livestock are high. Dut everyone is talking hard times and the farmer believes that he is worse off than actual conditions would warrant. If they should by any means regulate the limited planting of cotton next year, cotton at present prices would be a great If any ti-re you need any information from Texas, I speculation. know you feel at liberty to write me and I will be glad to be of use as far as my knowledge goes. " A.H.Lindley & Co., Dealers in Everything Lamesa,Texas,9/15,14 Sanger Bros., Dallas, Texas. Gentlemen: We are just in receipt of your favor in regard to placing cotton as credit on our account and we ere goad to see that you have taken this step to try and relieve the situation and we are sure it will help greatly though at this point and time we cannot see our way out on account of the lask of money to pay for heading maize end picking cotton. The banks here have been all in all the year and absolute ly will not advance for head cutting or cotton picking. 7e have tried to relieve this situation by offering to honor orders from farmers in favor of their hands but the Mexicans will not accept this. If we were able to pay cash for a part of the maize heading we could get a great deal of it on account and turn to you and others or sell for cash and get returns which would start the ball rolling and fix it so money would be ready for the picking. We have an immense crop of both feed and cotton enough of either one I am sure to meet every indebtedness of the f4rmer but as it is now we are tied. Our customers are after us every hour to pay cash for their feed which we cannot do. As a result many headers are leaving and that leaves us in hard shape. The farmers are all anxious to turn their cotton to2us on the holding basis if they could Dick it: The cotton factors only tender us 020.00 a bale at for immediate sale or discretion and if we do that the cotton will be out of our hands and will do you no good. The writer attended several conferences while in Dallas and heard many propositions worked out but they all failed to make any allowance for the shortage of money to pick the cotton, Usually the cotton pickers are our best trade at this time now they are as scarce as other customers and we are at a loss to know what to do. We will appreciate any assistance you may be -2- able to offer and will suggest that if you will allow us to make draft for $15.00 a bale for picking, we can turn cotton over to you in a hurry. Think this over and see how it appears to you. We are trying our best to get maize to fill Mr.Berry's order but under the present conditions it will take a month to get one car. Assuring you that we appreciate your proposition and are doing all in our power to carry it out, Gentlemen: We appreciate what you have agreed to do in regard to the cotton. The reason we asked for 'the tickets to be left here was if we should have a hhance to sell the cotton the tickets would be where we could get them. I wish you would make out statement in full and attach a note due on or before Jan the first for the amt and I will attach cotton tickets at the rate of tV where they are owning us we are handling it on that basis. The bonded warehouse will be in shape by the first of next week and I will send wou the bonded warehouse tickets. if this is satisfactory would be glad to hear from you by re- turn mail. Very truly yours, L.B.Selman & Co. Joseph .Floyd, Dry Goods & Millinery Madisonville, Texas, Sept.,17th,1914 Sanger Bros., Dallas, Texas. Gentlemen: ReferinR to the note that will mature on Oct.lst, I am forced to ask you to please extend this note for a short time as we cannot collect anything now until cotton begins to move which I trust will be real soon. We are makeinR a fine crop and condions would be good in this country if we had a market for our cotton and I trust we will have this before many more days. I regret to have to ask you to hold this note after maturity but I am forced under this condion to do so. Trusting this will meet with. your approval as I am sure it will and thtt this condion will soon be back normal, I am, Yours truly, J.W.Floyd T.O.Stamps & Co., Furnishing Merchants Ore City, Texas. Sanger Brothers, Dallas, Texas. Gentlemen: We are in receipt of your circular letter by your Mr.Connor concerning cotton and cotton warehouse receipts and we beg to advise that we expect to get our warehouse ready for cotton possibly before the 1st of the month and just as fast as cotton can be gotten in on accounts we will take pleasure in complying with your equest by sending you some of our cotton warehouse re- ceipts and we shall endeavor to divide them around so that the most good can be accomplished. In this connection we desire to express our thanks the favors we have received for at your hands andtrust that we may be able to show our appreciation in a very substantial manner which we are positive of doing if sonable price so that our cotton will sell for any rea- customers will be in shape to help us. Sincerely yours, W.O.Stamps & Company by W.O.Stamps,Jr. Elmore Wright Winnsboro, Texas, September 18, 1914 Sanger Brothers, Dallas, Texas Gentlemen, I wish to no if Dallas will advance money on cotton that is insured on the weighing yard and have much on the bale. And rate of interest charged. am paying more than the market price and want to hold untill I can get even if I can, II Thanking you in advance, I am Yours very truly, Elmore Wright. M. H. HARRIS General Store, Kirven, Texas, Sept 15,1914 Sanger Bros., Dallas, Texas. Dear Sirs, Replying to yours, beg to state that I have practically made no collections of this year's accounts, and none have been made in our town. crops he are late and operating slowly. The cotton Work began on our warehouse this morning and will be rushed to completion. \I am offering 100 per # for cotton on accounts. 10$ on my notes? Would you give me I intend doing all I can for you by the 1st of October. Yours truly M.H.Harris W.0 .Wright General Merchandise Megargel, Tex. Sept 17,1914 Sanger Bros. Dallas, Texas. Gentlemen, I hold tickets for about 20 bales of cotton that my customers have left with me but they want more than 80, the prevailing price, hence they put them up _ with me and ask me to hold for them. Now can I place these tickets with you to hold the cotton for me and them untill we think the price will warrant us to sell? We want to hold about 60 days yet unless the price gets better. Yours truly, W.O.Wright. Berwyn Mercantile Company Berwin, Okla. Sanger Bros. Texas Gentlemen, We possibly will not be able to pay our note to you on the date that it is due as the condition of the cotton market ( as you know) is very bad. We are getting cotton every day on account but the farmerw don't want to sell for what they are offered, so they leave it with us -- but it does us very little good as we can't sell it without their consent. might work up to 9 or 100. It looks as if the market If it does we think most of our customers will be willing to sell at that price ( some of their cotton anyway) and then it wouldn't take long to raise a whole lot of money. Hoping the market will get up to a reasonablefigure. Yours very truly, Berwyn Mercantile Co. o Holcomb & Merriwether General Merchandise Alto, Texas. Sanger Brothers Dallis, Texas. Sept 19, 1914 Gentlemen, not I ma just in receipt of yours in regards to note. Now it is necessary for me to explain to you our condition down here. But, will assure you that I will do everything possible for you just as soon as possible. S. M. Holcomb Brogoitti Bros. Groceries Gents Furnighings Newsome, Texas, Sept 24,1914 Sanger Bros. Dallas , Texas. Gentlemen, In regard to our note due with you on Oct let, for *480.14, we will say that we will and are doing our best to adjust same at this time. Now as condi- tions are very bad it is impossible to give a definite answer--but you can de- pend on us ding all we can under the present circumstances and conditions. Yours very truly, Brogoitti Bros. Garrison, Texas. Sep 17,1914 Sanger Bros, Dallas, Texas. Dear Stirs, In regard to what I owe you will say you understand the proposition we are up against. We cant get money for anything at present so I hope you will be lenient with me until times get better. I appreciate the fact th been very patient, with me and I hope in the near future to pay you in full and do some business with you. Your friend, M. P. Hamilton. 4RUCE ec CLYMER General Merchandise, Produce a Specialty Lane, Texas, Sept 19, 1914 Sanger Brothers, Dallas, Texas, Gentlemen, Your letter received in regards to our note due Oct let. In reply will say these farmers all up here are carrying their cotton back home holding for a better price. Everything and everybody advocated doing that mdthgljpve done it. Its the hardest luck we have ever been up against. However we are going our friends to sell same between now and the 1st, as we are bound to have some relief. Theyhave only sold enough to pay picking and live on. If they get a good price we will come out fairly good, but, it2.2,2112...come_too slow to make payments like normal. Will do our best. Your friends, BRUCE & CLYMER C.L.Westmoreland, Eustace, Texas. Sept 18,1914 Sanger Bros. Dallas, Texas. GO4lemen, Our account with yo li will soon be due. If conditions don't change. We cannot meet settlement. As the cotton market is bad and the cotton is being held in this part of the country. We hope to see conditions better soon. We wish to remain, as herebefore, Yours truly, C.L.Westmoreland. G. W. TURPIN & COMPANY Dry Goods, Groceries, Hardware, Shoes and Millinery Graford, Texas. Sept 18,1914 Sanger Brothers, Dallas, Texas. Gentlemen, We have no warehouse, nor have we any cotton at present and there is but little cotton out; there having been no stable price, the farmers are holding until a market opens or they can borrow money. We may not be able to meet our note at maturity and will have to beg your leniency but we will pay it at the very earliest moment. Resp'y G.W.Turpin & Company. PICKENS & 'eTILSON Dry Goods and Drugs, Newport, Texage. Sept 18, 1914 Sanger Brothers, Dallas, Texas. Gentlemen, Although our town is small, our gin does a good business, ginning on an average of 2000 bales of cotton each season. here while a part of it is sodl at Bowie. Some of this cotton is brought We have organized a buy a bale of cottoh club and should like if possible to have you wholesale people buy through your customers here, or through Mr: B.B.Bale, President of the Club, a bale of cotton. The cotton can be properly stored and insured at Bowie, Texas. If you wholesale people will buy a few bales to add to the few we local merchants can buy and to the number we can get our farmers to agree to hold, it will help that much. If you will buy a bale and do not want to send check or draft, we will send you weights, receipts and the growers affidavit that he received 100 for his bale and that he agrees to hold a bale for each bale bought at 10¢ and then charge your account with the price of the cotton. Thusting that your interest in your customers here will justify you to buy through them a bale of cotton and in this way help to handle the cotton situation in this place, we remain, Yours truly Pickens & Wilson. C.D. DeWitt Dry Goods, Hats, Shoes, Men's Furnishings and Boy's Clothing Alba , Texas. Sept 18,1914 0 Sanger Bros, Dallas, Texas. In answer to your letter of the 17th, will say I carry blanket in- Tentlemen, surance on cotton. I also expect to sell cotton by October first, provided it is wprth 100 per pound. I am paying this on accounts and the day I get out, I expect to turn it loose, however, in case the market is not as good as ten cents I would not want to sell as it would mean loss to me. In case I don't sell I expect to handle these tickets like I would money: prorate them around or anything that you think is the best interests of all concerned. I am, Hoping this will be satisfactory, Yours very truly, C. D. DeWitt Nat, Texas. Sept 17,1914 Sanger Bros. Dallas, Texas. Gentlemen, In response to your letter in regard to my note, I cannot send you money by Oct. 1st, but can send you receipts against cotton -- but please send me details as to how it will be worked out, and as to how much you will allow on the bale -- that is, how much will a bale cover, -- and, as to the interest on the note, and etc. Yours respectfully, F. Bates. E.G.Williamson Dry Goods, Groceries and General Merchandise Sacul, Texas, Sanger Bros, Dallas, Texas, Sept 18,1914 Gentlemen, I am sorry but I cannot settle my account with you. settle in a few days if cotton has a market. Think I can Thusting you will be lenient with me; I assure you I mean to do the right thing. Now in case you think I mean otherour banker, I. Glenn, Cashier and J.T.Gregory, Merchant. E G. Williamson. wise, you write to http://fraser.stlouisfed.org/ Yours Federal Reserve Bank of St. Louis truly. Barnes, Hambrick & Co. Dry Goods & Furnishings, Sept 17, 1914 sere. Sanger Brothers, Dallas, Texas. Gentlemen, In reply to our letter of recent date regarding our note for 4640.27, which falls due Oct 1st, will say with the present outlook it will be impossible to meet this promptly, but will do the best we can. You suggested that we send you warehouse receipts or public weighmaster's tickets, but as we have only do ne a email credit business we could not secure enough of these to be of material benefit. We are endeavoring to secure some of these however, also to secure others, and give our customers credit for them, allowing them to trade this out with us. This however does not appeal to the farmers in our section; and the fact that cotton is selling at a little better price than ten days ago, make them expect the market to go up to about 100, and in case it does I think our business will soon enable us to meet all our obligations. It is not a question of collecting for what we have sold, but we will have to sell some goods, and untill we can do this we are going to be handicapped. Please advise us if you can suggest anything that we can do that will assist us to stimulate trade and we will do all in our power to do as you wish. hoping that things will soon adjust themselves, and when this is done we are confident things will come around 0.K.. We assure you we will do our best by you, we can and will send you what money we can, and in this way will try and be as prompt as possible. Yours very-truly, BarnesHambrick & Company. W.N.Pruett, General Merchandise, Chico, Texas. Sept 18,1914 Sanger Brothers, Dallas, Texas. Gentlemen, I am sorry I can't meet it Yours to hand in regard to me note Oct let but think I will be able to at once as cotton is one month late in our community, pay all my indebtedness this fall and winter. Cotton just began to come in this week, but the farmers are not selling it but very litt ee. Be patient with me and all will be right. ""'"'"........icumermummaimmiumaromostmissa Yours, W. N. Pruett. , Tussy ,Oklahoma 9/18.1914 Sanger Brothers. Dear Sirs: I see that you have drafted on me gentlemen I have not got the money if i did have i would send it to you i wrote you last week and told you all my condission there is not know cotton selling here and they have just cemance picking here goods and some has not comance yet now if you all will just give me a little time i can pay all i owe i think so hoping that you will give me some days yet i think by that time i will be able to pay it so hoping youall will be pasient with me as ever thing is tyde up ,kaw so i remain as ever yous W.D.Upchurch 1 Lively & Son, General Merchandise, Maydelle, Texas, Sept.19th,1914 Sanger Brothers, Dallas Texas. Gentlemen: Answering your letter of the 17th will say that we preoareing to build us a warehouse at this place to store cotton so that we can apply cotton on our accounts but as we have always done we expect to take up our debts by installments along as we get it as we have other debts to pay, but we are sure that you understand this as you have always left it to our pleasure as to that part. We feel good over the situation rhile there is no market practically for cotton we have a good crop here end we are giving lOrl on account and believe that we will get very near all phat we have out in. Will begin to take care of our account as soon as we get our warehouse built. Thanking you for past favors, we are, YOUTS truly, Lively & Son. Wmalvioeley & Sons, General Produce Hickory, Oklahoma September 21st,1914 Sanger Brothers, Dallas, Texas. Gentlemen: Your letter dated Septa?, requesting a check or cotton warehouse receipts coverin3 our note due Oct.1, received. Mile it is not necessary to refer to the prevailing conditions we would say that cotton is at least 20 to 30 days late in maturing in our territory. However we have a good crop and picking has begin in general this morning. If we should have open weather the balance of this month we cansee no reason now why we should not be able to meet your wishes with reference to the cotton receipts. We have a good warehouse to care for all of our cotton and we have complied with all of the legal requirements with reference to cotton warehouses. We will not be able to send you insurance policies from the fact that we carry blanket insurance on all of our cotton. We hope at no late date that the cotton market will get in shape so that we may be able to sell same. Thanking you for all past favors, we beg to remain, Yours truly, WM. MOSELEY & SONS Per 74.Liosley, Sr . W.P.Milligan, Comthision Merchant Allen,Texas, Sept., 19,1914 Sanger Brothers, Dallas, Texas. Gentlemen: Owing to the price of cotton the farmers is not selling much cotton they are hauling nearley all of their cotton back home and holding it for 10c/ and it is maki4g collections awful dlik4)0,and . have not collected a cent from this years crop yet but I think I will in a short time and as soon as I can I will pay you people some business has ben awful dull the last month and I have not done much Yours resp, W.P.Milligan MIN John S.Milton, Staple and fancy groceries,dry goods, hats,caps,etc. Direct,Texas, 9,17,14 Sanger Bros., Dallas, Texas. Gentlemen: In reply conserning my note on the 1st of Oct will say I aim to do my best to meet this when it comes due or even before if I possible can but we havent any warehouse hear or even a public weigher hear. My customers have just begin picking cotton but I think I will be able to meet this at least the most of it by than hope I will anyway. Yours resnectfuly John S.Milton Thompson Brothers, Frost, Texas. ay, Sept .18 ,1914 Sanger Brothers, Dallas, Texas. Dear Sirs: Refering to your notice of our note of $800.00 due Oct.lst will say that we are going to pay same just as soon as possible Would like to pay it when due however it depends on collections. Collections so far have been very slow but expect them to be better owing to better prices on cotton. We do not deal in cotton at all but this year we are going to make an exception and buy cotton where it is placel on accounts ana can be bought reasonably. 7e find a good many people are obligated to landlord and bank for the first cotton they get out. Cotton is much later this season than in former years. We intend to cooperate in every way possible to make the best of the conditions. Yours truly, Thompson Bros. By R.R.Thompson W.B.Eagl e & Co. General Merchants India,Texas, Sep.19,1914 Mess.Sanger Bros., Dallas ,Texas, Gentlemen: In reply to yours of 17th in regard to note that will be due Oct 1st will say that we think now that we check by the first covering this note, willbe able to send you Yours truly, W.B.E agle Co. Lacey & Wagnon, General Merchandise Mr.Enterorise,Texas, 9/18.14 Sanger Bros., Dallas. Gentlemen: Yours of the 17th inst to hand and will say in reply that we cant buy this cotton for less than 14 and unless our creditors will allow us 104 dont know what we are to do. The merchants and farmers have gone to the expense of building a warehouse and thought we could draw some money but we have not been able to draw any on it yet. Last year at this time we had bought over 100 bales, now we have 22 left with us. Can you help us any in handling this cotton. Some towns are paying 100' on accounts but we dont see how we can afford to pay 100' and take 8 or The cotton is here if we could buy it. Please let us hear from you again and help us all you can. Thanks for all favors. Lacey & Tagnon Jordan & Blizzard, Dry Goods & Groceries, Alba,Texas, Sept.18th,1914 Sanger Brothers, Dallas, Texas. Gentlemen: We are in receipt of your letter of recent date calling our attention to our note due you on the first of October and in reply will say that we shall do everything in our power to meet our obligations as quickly as we can treating all our creditors as nearly alike as we can. Uotton picking in this section is at least two weeks late and farmers are not selling but very little cotton yet. -e are trying to get as much cotton as we possibly can at 10r/ on accounts. We realize that it is a great sacrifice unless the market gets better We expect to help you some about the first, but unless conditions improve greatly, we do not think that we shall be able to meet all of the note referred to in your letter. Thanking you for past favors, we are, Very truly yours, Jordan & Blizzard. W.H.Humphries, General MerchPrdise Edgewood,Texas.,Sept.18,1914 tess.Sanger Bros., Dallas, Texas. Dear Sirs: Yours of the 17th inst. received relative to my note due Oct.1 In reply will say that I have not been able to buy but one bale of cotton and at that fate I will not be able to meet my note at that time, however I will do the very best I can. The farmers here dont want to turn their cotton loose most of them hauling it home. I believe after Oct.lst we will have to force them to put it on the market. - I have offered my customers 10c/ per potnd on their account and they refuse that. Yours truly, W.H.Humphries. A - COPYPOSTAL SAVINGS SYSTEM. Third Assistant Postmaster General. CWC -EMS Washington. September 15, 1914. Bankers Trust Company, New York City. Gentlemen:- In reply to your letter of the 8th instant, you are informed that the new Federal Reserve Act provides that postal savings funds shall be deposited only in banks belonging to the Federal Reserve System. This restriction will become effective when the System begins operation, which will probably be in the near future, and no further applications to qualify for postal savings deposits are being approved unless the banks concerned have applied for membership in the Federal Reserve S7stem. On receipt of information to the effect that the Bankers Trust Company has applied to become a member bank it may be again included in the apportionment for the New York post office as an active depositary for postal savings funds. Respectfully, (Sgd.)A. M. Dockery, Third Assistant Postmaster General : ,41 A / ( Extract from letter) oVid 61( 6,--neAectolciitta 27aith-tc, Alec& 57 )4 5.q 71Loiumq 0,77-1,,t9 tirm& atekm, att.e.a 0-62,dch-e4 771141. i1/4- a *7U Atm_ -et 7)-1 ) atist-iteked-frat._ ictioaw 721,a,Thiti4,F tat2,14-xxael am/a_ aux' ecei,a, (cat actgAik4 ite_.5axic.4) aiWee-CaIt. teotet ,e),149wa Iar i4iaOtit4Lek Of40-7t4 la-9tiitt4 adr42-4 ice/Reapfd / .14 kat AO- -brivinttkeViS of7tArQ CaOka , -6lerie441471,44,-- Cb..:0 conTimtLe Witaegt alnuttaA ,(Act"Ava___ter idea_ yai.teee Tkctr atttwe/ntti 7/CLife,t4 ,/t5 caira **ft F6 c).6t,L d <5) ett4-0 adexY, _ '64 (io leizioatamo- itsli6-61 aiwitAu.4, Ot6ca) cIrf(6-71-17-m4til efieViieS CM971.4414.Q...:2X-9 /17-Yvt-t-n-ntecvt eg rct---6 4,wK) 4-tk CABLE ADDRESS NEW WILLARD EUROPEAN PLAN wit I/ / 1.spEivAlvirAAvE., Forwriaffin&F STREErs 19 TVASHINGTOXI).C., S. HIGHT, MANAGER. CeY1 '4Z14 ceccw--0 //,(4-vd r 7ut 74 2?/,zeZ 4/e;2-t_r FORBE S CO. B 03201E. CABLE ADDRESS NEW WILLARD EUROPEAN PLAN 1/ / t / /1 STREE,275 39 1ASHINGTOA;1). FS rmA2= ?z4 ay yktt,o /cc-e? e-ivt I /&ot.G 7rk, 41 , A /r a 0 7L410/6 dtiktieti (0e,CGd' FORBPS C0.0520X. CABLE ADDRESS NEW WILLARD EUROPEAN PLAN /I 1 /1 Fisivw-smivAimiAv_hivuE,,F0-u-R7wariii&F SICREETS 19 WASIEINGTOX.D.C., F S. HIGHT, MANAGER. eeL--z,a / ;T At<9 9,24-6, 4 ktic-, d,u( , Zo-u4,0&ze "-° Zcz_X -74 FORBES CO.BOSTOX. CABLE ADDRESS NEW WILLARD EUROPEAN PLAN rizE / PSI" " I/ / Pialowsly EN JE,FouRzawhwir 4t.JF STREETS WAS/VG-7 _ F S. HIGHT, MANAGER. CABLE ADDRESS NEW WILLARD ringiVEW // / WAsirryaroC, :4, )) i9_ F S. HIGHT, MANAGER. 44Z._ C., )2'1 e r-I/1- ifC r/(74;C 7Lbo c/icAeg fst,;d 4-64-e FORM 873 MEMORANDA for DEPARTMENT August 20, 1914. MR. CLOSE I want to get information from the various note brokers of the amount of purchasehaper now outstanding, so as to get an idea of the amount of renewals that will have to be handled by the banks. At the same time, if they will furnish the information, I would like to know what amount of paper on their books has matured from July 28th to Icagust 14th inclusive, and how much their sales have been during that period. The latter information may be difficult to get, but you can explain in each instance that their name will not be used, that the information will be treated as absolutely confidential, and that it is desired for an important purpose, to be used by responsible people. It has already been furnished in strict confidence by Hathaway, Smith, Folds & Co. and I feel certain that others will furnish it without hesitation. The attached list covers the principal dealers in the various cities. we have asked the Old Colony to get the information in Boston, and suggest that you ask Waldeck to get it in Chicago, and McAllister of the Franklin National, to get it in Philadelphia. In the case of Goldman, Sachs & Co., I would suggest using Mr. Wiggin. The others on the New York list can probably all be handled by you. Should you encounter difficulty in any case please let me know. B. S. Jr. 4 673 MEMORANDA for Sept. 16, 1914. DEPAmTMENT Mr. Strong. Mr. Mills advises me that the compilation of railroad maturities for the last four months of 1914 and for the calendar year 1915 included neither equipment bonds nor other serial maturities. In the compilation which I made up for the period from August 20, 1914, to January 1, 1915, the equipment maturities aggregated 416,135,000. The City Bank's total of railroad maturities from September 1, 1914, to My exactly the December 31, 1914, inclusive, was $43,831,100. the equipments above noted, foots up $43,278,000. same period, including total for Mr. Mills tells me that Mr. Trumbull furnished them with a list that Mr. Trumbull already had (which, he assumes, was my list, as it came This list the City Bank used as a basis, from the Bankers Trust Company.) Mr. Mills says that for the checking up maturities and making additions. past two years they have had one of their men keeping track of all maturities as news regarding them was obtainable in all sorts of publications. The City Bank's facilities, as you can see, are vastly superior to ours, for there is no accurate compilation of maturities extant. I desire to make this explanation lest you should get the should also like to remind I impression that my work was carelessly done. you that, at the time, I told you verbally that, in the nature of things, This is shown my list was bound to be an understatement of the total. to be correct, except in so far as my list included the equipments. H. S. M. C29 OLeA-4-' 21tj A44 *'211'LQ-0 Complete Agreement, dated the 10th day of September, 1914, between hereinafter termed the City, acting by the Comptroller, party of the first part, and THE CITY OF NEW YORK, J. P. MORGAN & Co. and KUHN, LOEB & Co., each a copartnership doing business in the City of New York, hereinafter called the Bankers, parties of the second part; 11111itnessetb: PART I. WHEREAS, The City has outstanding promissory obligations maturing in various amounts and at various dates prior to January 1, 1915, in London for the aggregate amount of £13,494,327 : 16s : Od., and in Paris for the aggregate amount of 61,500,000 francs, and desires to obtain moneys for the pay- ment of such obligations and of other indebtedness and for the discharge of its obligations under improvement contracts; and WHEREAS, The City has requested the Bankers to undertake to form a Syndicate to purchase from the City its promissory obligations hereinafter described for the aggregate principal sum of $100,000,000: 'Row, Uberefore, It is agreed between the parties hereto as follows: The Bankers will use their best endeavors to form FIRST. a Syndicate for the purposes of this agreement upon the terms of a Syndicate Agreement of which a copy is hereunto annexed, the members of such Syndicate so to be formed being hereinafter termed "syndicate subscribers." The Bankers will furnish to the Comptroller of the City a statement setting forth the names of the corporations, firms and persons proposed by them as syndicate subscribers, and the amounts of the obligations to be assumed by such syndicate subscribers, respectively, under the Syndicate Agreement; and the Bankers shall not accept as a syndicate subscriber any corporation, firm or person not approved by the Comptroller. 2 3 Subject to approval by the Comptroller as aforesaid, any bank and any trust company in the City of New York, and each of the copartnerships, parties hereto of the second part and any other person, firm or corporation that the Bankers shall designate, may become a syndicate subscriber. When syndicate subscribers approved by the Comptrol- of the City of New York, in anticipation of revenues of the City, shall have been obtained by the Bankers for the total amount of the aggregate syndicate obligation, the ler Bankers shall give notice in writing thereof to the Comptroller, and thereupon this agreement shall become and be operative, and then and thereafter the syndicate subscribers, severally and respectively, shall become and be responsible to the City for the amount of their several subscriptions, and the only responsibility of the Bankers to the City under this agreement shall be for the amount of their respective subscriptions as syndicate subscribers. But in any event, the Bankers will manage and conduct the operations of the syndicate under this agreement. The City agrees to sell, and, as provided in said Syndicate Agreement, the syndicate subscribers severally shall SECOND. agree to purchase and to pay for, at par, plus any accrued interest, promissory obligations to be issued by the City and delivered to the syndicate subscribers in the several amounts to which they are entitled, respectively at the office of J. P. Morgan & Co., for the aggregate principal sum of $100,000,000, all to be dated September 1, 1914, and to bear interest at the rate of six per cent. per annum, payable semi-annually, both of which $18,000,000 principal amount is to be payable September 1, 1916, and $25,000,000 principal amount to be payable September 1, 1917. Such promissory obligations of the City shall be designated and known as notes or as bonds or as bills, or any thereof may have any of such designations, respectively, as may be requested by the Bankers. The City agrees to issue such promissory obligations of the several classes and in the several amounts reTHIRD. spectively above stated, and to make delivery thereof as aforesaid as of September 11, 1914. Pending the preparation of the definitive obligations the City may deliver temporary receipts, or obligations in temporary form, entitling the holders thereof to receive, without charge, the definitive obligations as herein provided so soon as the same shall be ready for delivery. The definitive obligations shall be in coupon and in registered form, in such amounts of each as may be requested by the Syndicate Managers. The coupon obligations are to be in denominations of $500, $1,000, $5,000 and $10,000 and the registered obligations in denominations of $500 and multiples thereof. The coupon obligations and the registered obliga- tions are to be interchangeable, and any obligation of a denomination greater than 000 is to be subdivisible into obligations of lower authorized denominations. principal and interest being payable in gold coin of the FOURTH. Upon delivery of the obligations, payment there- United States of the present standard of weight and fineness, for shall be made by the syndicate subscribers at par, plus as follows: $57,000,000 of promissory obligations issuable pursuant any accrued interest, as follows: to the provisions of Section 189 of the Charter of the City of New York, payable September 1, 1915. September 11, 1914, either (a) credit to the City, as a special deposit, the full amount due from such subscriber in payment for such obligations, or (b) make payment of said amount to another City depositary as next hereinafter provided. $43,000,000 principal amount of promissory obligations issuable under the provisions of Section 187 of the Charter 1. If such subscriber be a City depositary, it shall, on 4 2. If such subscriber be not a City depositary, or if being a City depositary it shall elect not itself to credit the City. with such special deposit, such subscriber shall make payment 5 'Pow, 'Therefore, It is further agreed between the parties hereto as follows: on September 11, 1914, of the full amount due from such Subscriber for such notes, to any City depositary designated by the City, to be held by such depositary as a special de- Of the special deposits of the City in banks and trust companies, as provided for in Part I. of this agreement, posit to the credit of the City of New York. to be paid to the Bankers for the purpose of paying the said outstanding obligations payable in London to the aggregate amount of £13,494,327: 16s: Od., and in Paris to the aggregate amount of 61,500,000 francs, maturing in various instalments prior to January 1, 1915. From time to time the City EIFTH. The City agrees that pending the withdrawal thereof, as hereinafter provided, any and all such deposits shall be permitted by the City to remain on such special deposit with each bank or trust company crediting the same as aforesaid, and that as from time to time withdrawals of such special deposits shall be made by the City, such withdrawals from each bank and trust company respectively shall be of such amount as shall bear to the total amount of such special deposit with such SIXTH. the City shall reserve the aggregate amount of $80,243,940.47 shall pay to the Bankers, or upon their order, out of such sum of $80,243,940.47, such amounts, at such times respectively, as the bank or trust company, the same proportion that the aggre- Bankers shall request, in ample time to enable the Bankers to make proper provision for taking up said obligations of the City payable by their terms in London or in Paris, at the rate of $5.035 for each pound sterling of all such obligations pay- gate of such withdrawals at such time shall bear to the able in London, and 20 cents for each franc of all such obligations aggregate amount of such special deposits with all of such banks and trust companies. The depositaries holding such special deposits shall allow to the City interest on daily balances at the rate of two per payable in Paris. The Bankers may request payments by the City out of such sum of money to enable them to take up said London and Paris obligations before maturity, in which case the City, if providing the necessary funds, shall have cent per annum. the right to the benefit of the discount at the rate allowed by the holders of such obligations. The Bankers in behalf of the PART II. AND WHEREAS, In view of the European war and the de- rangement of international exchange caused thereby, the City desires the assistance of the said Syndicate in making payment of the said promissory obligations of the City payable in London to the amount of £13,494,327: 16s: Od., and in Paris to the amount of 61,500,000 francs, and upon the terms of this agreement hereinbelow set forth, and upon this agreement becoming effective as hereinabove provided, the Syndicate is to undertake to pay and discharge as hereinafter provided the said London and Paris maturities, in consideration of the payment to the Bankers, for account of the Syndicate, of the aggregate sum of $80,243,940.47: Syndicate undertake and agree that upon payment to them from time to time as aforesaid of said aggregate sum of $80,243,940.47, all of said London and Paris maturities - of the City shall be duly paid and discharged , subject, however, to the provisions of Article Eight of this contract. The Bankers on behalf of the Syndicate shall have the right to effect s, ch payment of such London and Paris maturities in any manner that the Bankers shall deem advisable, in their discretion. SEVENTH. For their services in so making such payment of such London and Paris maturities, the Syndicate shall be entitled to retain, and it may retain, out of said sums so to 0Q 6 7 be received from the City, the net profits which may be realized superior force further proceedings shall become impracticable, by the Syndicate in effecting such payment by shipping gold or by acquiring exchange on London or Paris at rates other then and in that event the provisions stated in this Part II. to the extent not theretofore performed shall become and shall be than $5.035 for each pound sterling and 20 cents for each terminable at the election of the Bankers, so far as concerns the obligations payable in the country to which traffic is so impeded. In the event of any such termination by the Bankers the Syn- franc, provided however, that in no event shall such net profits so retained by the Syndicate exceed an amount equal to 2% of such sum of $80,243,940.47, and that any such net profits in excess of such 2% of such sum shall be accounted for and be paid to the City. It is expressly understood, however, that in case the performance by the Syndicate of its obligations under this Part II. of this agreement shall result in a loss to the Syndicate, such loss shall be borne wholly by the Syndicate. In determining the said net profits there shall be deducted from the gross profit, if any, realized by the Syndicate under this Part II. of this agreement, all of the expenses of the Syndicate and the Bankers in the formation of the Syndicate and the completion of its transactions under the syndicate agreement and under this contract, including all legal expenses, and the cost of advertising for sale the obligations of the City purchased by the Syndicate; provided, however, that if any profits be realized by the Syndicate upon such sale, there shall be deducted from the gross profits of the transactions under this Part II. of this agreement only the amount by which the cost of the said advertising shall exceed any such sale profits. EIGHTH. Inasmuch as the undertaking set forth in this Part II. of this agreement has been negotiated under conditions unprecedented and unforeseeable in their outcome, both Great Britain and France being at war and Paris declared in a state of siege, it is expressly understood that in the event that ocean passage between New York and England or New York and France shall not continue open to substantially the same extent as prevails at this date, and the shipment of gold or of grain or other American products from New York to England or to France shall be materially impeded, or if by reason of any dicate shall be discharged and relieved from the provisions indicated in this Part II. to the extent that the same shall not have been performed prior to such determination. Nevertheless, the Syndicate shall continue under obligation to take and pay for said $100,000,000 of the promissory obligations of the City as aforesaid. PART III. The Bankers shall receive no compensation for their services in forming or managing the Syndicate; but the Bankers may become syndicate subscribers, as hereinabove NINTH. provided, and as such may share ratably with such subscribers in any profits of the Syndicate. TENTH. The City further agrees that any and all banks and trust companies in the City of New York included in the syndicate subscribers and approved by the Comptroller as hereinabove provided, shall be designated by the fiscal authorities of the City of New York as City depositaries, to the end that the amounts paid by such banks and trust companies in the performance of their Syndicate obligations respectively, may be deposited by them as special deposits of the City as aforesaid to bear interest at the rate of 2% per annum. ELEVENTH. This agreement shall bind and be for the benefit of the parties hereto, and the syndicate subscribers, and their successors, survivors, executors and administrators, severally and respectively. TWELFTH. All rights and powers of the copartnerships, parties hereto of the second part, shall vest in the firms doing 8 business in the name of said parties of the second part respec- tively, and without further act or assignment shall pass to and vest in the successors of said firms, respectively, as from time to time constituted. THIRTEENTH. Nothing in this agreement contained shall be construed as creating any trust or obligation whatever in favor of any person or corporation other than the parties hereto and the syndicate subscribers, nor any obligation on the part of the Bankers except only as herein expressly provided. IN WITNESS WHEREOF, This contract is executed by the City of New York by the Comptroller, and the seal of the City of New York has been hereunto affixed, under and by authority of a resolution duly adopted by the Board of Estimate and Apportionment of the City of New York; and the Bankers, parties of the second part, have hereunto subscribed their respective names, the day and year first above written. THE CITY OF NEW YORK, By Wm. A. PRENDERGAST, [L s. I Comptroller. Attest: FRANK J. GOODWIN, Deputy City Clerk. J. P. MORGAN & CO. KUHN, LOEB & CO. BOARD OF ESTIMATE AND APPORTIONMENT CITY OF NEW YORK Whereas. The City of New York for the purpose of meeting its outstanding temporary loans to the amount of $100,000,000, of which there are foreign obligations to the amount of i13,310,000 and 61,500,000 francs, incurred through the issue of corporate stock notes and revenue notes heretofore issued under and pursuant to provisions of Sections 189 and 187 of the Greater New York Charter, and payable between this date and January 1st next; And Whereas, the extraordinary situation prevailing in the financial market, due to the European War, makes it imperative to provide for the payment in gold or purchase of exchange or other arrangement for settlement at this time for the full amount of the foreign loan; And Whereas, the City expects from time to time to become a_f_urther borrower in the market for the purpose of financing itself through ensuing years as heretofore by the issue of revenue bonds and revenue notes in anticipation of taxes and by the issue of corporate stock notes and corporate stock for permanent improvements ; And Whereas, at the present moment a world condition prevails in financial markets making it exceptionally and extraordinarily difficult to secure loans in large sums such as regularly required by the City to provide funds for the discharge of its business in anticipation of collection of taxes and issue of corporate stock, and for this reason it becomes desirable that the City of New York should maintain its credit unimpaired in this period of financial stress and to that end to conform its practices to the most conservative methods of financial management ; And Whereas, The members of this Board have contemplated the necessity of adopting a new policy with regard to the financing of permanent public improvements looking to the payment of the expense thereof in increasing proportions out of the budget of the city rather than through the issue of long term bonds, and have already adopted such practice in part, which intent was further evidenced by the statenient contained in the communication addressed by the Mayor to this Board in transmittal of the executive budget on August the 14th last ; And Whereas, The present is an appropriate time for the further extension of this policy; now therefore be it Resolved, That the Board of Estimate and Apportionment hereby declares that it will pursue the following plan in financing public improvements : (1) The cost of all improvements of the revenue-producing class, such as rapid transit, docks, railway and water terminals and water supply, shall be defrayed by the issue of fifty-year corporate stock as heretofore. (2) The cost of all permanent improvements, other than those of the revenueproducing class, hereafter authorized by this Board, shall be financed as follows : Those authorized subsequent to the passage of this resolution and during the year 1915 shall be paid for, three-quarters by the issue of fifteen-year corporate stock. The corporate stock so issued shall mature either in not more than fifteen years, amortized as provided by law, or in equal annual installments, during a period of not more than fifteen years. The remaining one-quarter of the cost of such improvements shall be paid through the medium of a one-year bond payable from the next annual tax budget. Those authorized in the year 1916 shall be paid for, one-half by the issue of corporate stock maturing as aforesaid. The remaining one-half of the cost of such improvements shall be paid through the medium of a one-year bond payable from the next annual tax budget. Those authorized in the year 1917 shall be paid for, one-quarter by the issue of corporate stock as aforesaid. The remaining three-quarters of the cost of such improvements shall be paid through the medium of a one-year bond payable from the next annual tax budget. The foregoing statements of policy contemplate the financing of improvem.mts authorized during the year 1918 and subsequent years through the inclusion of the entire cost thereof in the annual budget of the city, excepting the revenue-producinc improvements hereinbefore mentioned. (3) In so far as corporate stock notes issued by The City of New York as a part of the proposed loan of $100000000 shall be retired by issues of corporate stock, the corporate stock so issued shall mature as provided in clauses (a), (b) and (c) of paragraph 2 of these resolutions. (4) The cost of public works already authorized, whether under contract or not, but in respect of which new bonds are to be issued, is to be financed in the same manner as above provided, with the exception of the cost of revenue-producing improvements hereinbefore mentioned. Nothing herein contained shall be deemed to affect either corporate stock or assessment bonds issued to replenish the street improvement fund or the fund for street and park openings. A true copy of resolution adopted by the Board of Estimate and Apportionment, SEPTEMBER 11, 1914. JOSEPH HAAG, Secretary. J. P: .11011G.1.N* 4 CO. KUHX, LOEB 4- CO. H sII Stmt. rorner Broad 52 H7Biam Mrert Xezt York, Septtnaber 14.194. CONFIDENTIAL $100,000,000 NEW YORK CITY LOAN SYNDICATE Dear Sirs: For your definite information, in the premises we hand you herewith: .1 copy of the formal contract dated September 10, 1914, between the City of Xew l'ork and the undersigned; and .1 copy of the Resolutions of the Board of Estimate and .1pportionment adopted September 11, 1914, as to certain fiscal policies. Very truly yours, J. P. MORGAN 4- CO. KUHX, LOEB 4- CO. Syndicate Man,agers. Enclosures. PROPORTIONATE AMOUNT AMOUNT EMERGENCY CIRCULATION AVAILCIRCULATION OUTABLE TO EACH BANK STANDING JUNE _7-14 BASED ON CAP. & SUR AVERAGE AMOUNT CAPITAL NAVE SURPLUS $2,000,000 $3,000,000 Merchants National Bank 2,000,000 1,500,000 Mech.& Metals Nat. Bank 6,000,000 Merchants Ex. Nat, Bank 600,000 American Ex.Nat. Bank 5,000,000 Nat. Bank of Commerce 25,000,000 Bank of New York, N.B.A. Chatham & Phenix Nat.Bk. 2,250,000 $1,464,000 TO WHICH -EACH INSTITUTION WOULD BE ENTITLED UNDER THE TERMS OF THE BILL. $3,536,000 $2,000,000 1,570,000 1,397,000 2,976,000 6,000,000 9,024,000 4,626,000 400,000 467,000 513,000 361,000 3,000,000 4,546,000 3,452,000 3,175,000 9,403,000 10,000,000 24,597)000 14,000,000 1,162,000 2,066,000 1,270,000 1,250,000 13,500,000 15,250,000 6,604,000 1,977)0°0 2,073,000 1,600,000 11,557,000 6,000,000 1,975,000 5,000,000 6,025,000 4,000,000 654,000 2,346,000 1,200,000 18,657,000 10,000,000 1,000,000 Hanover National Bank 3,000,000 Citizens Cent.Nat. Dank 2,550,000 1,500,000 National Park Bank 5,000,000 10,000,000 Fourth National Bank 5,000,000 Second National Bank 1,000,000 2,000,000 10,000,000 15,000,000 4,000,000 3,000,000 1,566,000 5,414,000 2,600,000 500,000 1,700,000 196,000 2,002,000 669,000 1,000,000 1,000,000 654,000 1,146,000 600,000 250,000 250,000 243,000 257,000 200,000 Liberty National Bank 1,000,000 2,000,000 496,000 2,504,000 1,200,000 Coal & Iron Nat. Bank 1,000,000 200,000 396,000 602,000 506,000 Union Ex.Nat. Bank 1,000,000 700,000 395,000 1,305,000 696,000 $116,296,000 $ 63,546,000 First National Bank Irving National Bank N.Y. Co. Net. Bank Lincoln National Bank Fifth National Bank ,Amouirt of circulation oustanding... 41,747,000 Total Capital & Surplus of banks...156,045,000 1,930,000 3,443,000 6,143,000 CONDITION OF NATIIONAL BANKS IN THE CITY OF MTN Yam ON JUNE 30th, 1914. BOROUGHS OF MANHATTAN AND BRONX. CAPITAL. SURPLUS & PROFIT U. S. BONDS MAXIMUM AMOUNT OF TO SECURE PRESENT CIRCULATION. CIRCULATION. LATION RE ALDRIESVREELAND BILL & AffFNIELMT. Bank of N. Y., N.B. Am 2,000,000.4 Merdhants National Bk. 2,000,000. Mechanics & Metals Nat.Bk. 6,000,000. National City Bank 25,000,000. Chemical National Bank 3,000,000. Merchants EXchange Nat.Bk. 1,000,000. National Butchers & Drovers 300,300. Ameiioan Exchange liat.Bk4 5,000,000. National Bank of Commerce 25,000,000. Chatham & Phenix Nat.Bk. 2,250,000. Hanover National Bank 3,000,000. Citizens Central Nat4Bk4 2,550,000. Market & Fulton Nat.Bke 1,000,000. Importers & Traders Nat.Bk4 1,500,030. National Park Bank 5,000,000. East River National Bank 250,000. Second National Bank 1,000,000. First National Bank 10,000,000. Irving National Bank 4,000,000. N. Y. County National Bk. Chase National Bank 5,000,000. Lincoln National Bank 1,000,000. Garfield National Bank 1,000,000. Fifth National Bank 250,000. Seaboard National Bank 1,000,000. Liberty National Bank 1,000,000. Coal sad Iron National Bk. 1,000,000. Union Exchange National Bk. 1,000,000. 200,000. Battery Park National Bk. 200,000. Bronx National Bank 200,000. GothamNational Bank Harriman National Bank 500,000. 200,000. Sherman National Bank TOTAL BOROUGHS OF MANHATTAN AND BRONX TOTAL Ati, OTHER BOROUGHS TOTAL CITY OF NUN YORK - 4,346,800.4 2,097,700. 8,874,6004 32,916,900. 7,755,000. 761,800. 111,100. 40693,300. 16,690,600. 1,357,900. 15,051,800. 2,371,200. 1,948,100. 7,676,000. 14,344,700. 65,200. 2,870,500. 23,177,700. 3,468,600. 1,916,800. 9,645,70). 1,789,800. 1,290,100. 505,000. 2,598,500. 2,844,800. 604,800. 1,008,000. 116,800. 255,500. 163,000. 887,600. 79,900. 5,000,000. 4,162,803. 450,000. 495,000. 50,000. 4,223,000. 1,200,000. 50,000. 1,555,100. 240,000. 50,000. 3,550,030. 50,000. 685,000. 787,200.4 5,559,600. 800,0 2,218,200. 1,950,000. 10,453,700. 1,879,500. 4,420,900. 3,471,200. 425,000. 472,300. 47,000. 3,996,400. 7,707,300. 50,000. 1,516,300. 59,600. 55,603. 200,000. 669,300. 4,974,103. 1,562,400. 196,000. 890,000. 350,003. 250,000. 440,000. 500,000. 400,000. 400,000. 200,000. 50,000. 200,000. 100,000. 175,000. 851,300. 311,900. 232,200. 365,100. 477,900. 391,500. 395,900. 195,400. 48,400. 199,800. 92,200. 170,600. 10,330,000. 364,100. 5,696,900. 33,983,300. 8,200,000. 2,435,200. 18,004,800. 2,888,500. 15,850,300. 265,500. 3,201,200. 28,203,600. 5,077,000. 5,906,203. 1,600,000. 2,220,800. 500,000. 14,201,500. 1,938,500. 1,948,200. 522,800. 3,233,400. 3,366,900. 1,213,300. 1,612,100. 121,400. 163,200. 1,295,400. 109,300. 4112,900,00041740188,800. 413,992,900. 411,213,300. 4245,975,500. 4,210,300. 1,677,000. 1,657,600. 5,954,700. 116,302,000.:178,499,100. 45,669,900. 42,870,900. 251,930,200. 3,402,000. 1, 3, CONDITION OF NATIONAL BANKS IN THE CITY OP NEW YORK ON JUNE 30, 1914. MAXIMUM MUM OF °TIMM BOROUGHS CAPITAL SURPLUS & PROFITS U. S. BONDS TO MCURE CIRCULATION ADDITIONAL culcuL TION RE ALDRICH7 CIRCULATION VIMLAITD BILL& ilti!ISENT ATUDMENT. Nassau Natl. Bank,Bklyn 4 1,000,000, 7irst Natl. Bank 300,000. Manfrs. Natl. Bank 252,000. National City BRAr 300,000, 200,000. Greenpoint Paint N.B. et 200,000. Peoples Natl. Bark ft ft 100,000. lidgemood u 25,000, Bayside L.!. " 200,000. Commercial Natl.L.I.City 100,000. First Natl.Corona,L.I. 100,000. First Natl.Jamaica,L.I. 50,000. First Nat1.0zone Park,L.I. 50,000. First Natl.Whitestone,L.I. 100,000. L.I. Flushing Natl. Natlaarik of Far RodkawayLI 50,000. 50,000. Marine Harbor Natl. S.I. 100,000. " Port Richmond Natl. 100,000, Richmond Borough Natl. It 100,000. Stapleton Natl. 25,000. Tottenville Natl. TOTALS 413,432,000. 1,121,700. 9 674,700. 28,600. 27,200. 23,000. 42,700. 15,400. 86,500. 27,500. 75,900. 14,800. 267,000. 300,000. 250,000. 120,000. 50,000. 50,000. 100,000. 25,000. 50,000. 45,000. 50,000. 50,000. 12,500. 100,000. 12,500. 20,000. 25,000. 40,000. 100,000. 10,000. 267,000. 300,000. 245,900. 120,000. 50,000. 50,000. 97,700. 22,600. 49,900. 44,500. 50,000. 47,200. 12,500. 100,000. 12,000. 19,300. 24,300. 38,300, 96,400. 10,000. 44,210,300. 1,677,000. $1,657,600. 587,500. 138,700. 147,800. 50,100. 12,000. 107,400. 58,300. 1,854,700. 674,700. 943,500. 949,600. 767,500. 288,700. 52,430. 14,430. 257,500. 113,800. 31,400. 64,700. 23,000. 80,700. 46,100. 162,200. 89,200. 79,500, 29,800. $5,954,700. NATIONAL BANKS. dez-. 2 1 3 4 5 : til CD d.4- CH gr-4 -i 0oc3 0 40-,--i 0) ,-1 0 'CI -I-) 0 0 SA H . ' . c::, ..-I ,ti -IA -I-) 0) 0) 0 E-i c- is .1-1 4-> ro r-1 FA : Reit-0571'611g-- ; 0 d k : H 0 P-1 cb W 0 a). P4 d 'id 0 Name of City CH : . F-1 g a) 0 OH 0 0 0 0 gi b0 H fil rip o 0 Per cent: Per cent; Per cent: Per cent: I- 29. Oklahoma City 30. Philadelphia 25.6 46.1 Pittsburg 22.05 : 16. 13. ° 47. 13. : 72.2 : : 42. : Amount . 1,613,000 653,000 18. 14. 26,814,000 9.1 16,285,337.50 : 18. - .24 al Portland, Ore 22.6 7.26 Pueblo Not given (In money) Richmond 17.75 6.35 Salt Lake City ..... 24.9 52. Omaha 28. 52.50 24.96 7 .6 3 : 23. 39. : Sioux City 23. 50. Spokane 34.8 St. Joseph 28.76 52. 59.65 : 19.70 St. Paul 23.50 48. 72. 21. Tacoma 23.3 13.6 .22 : 945,000 9.40 2,980,000 990,000 73. : 60.8 . 5,267,355 2,872,275 So. Omaha San Antonio ...... San Francisco 9.63 3.32 : 1,135p00 97. 3. : 15,180,000 70. 8. 883,000 1. 1,736,947 Savannah Seattle 14.3 7.7 7.6 Topeka 13.1 32. 1.4 901,000 4,800,000 862,000 20. Waco 24.50 31. 38. 21. 381,000 Wichita 29. 57. 68. 19. 463,000 Chicago 24. New In money York St. Louis 38.1 156,704,000 In money 25. a b c Gold coin. Of time deosits " demand k : Gold Certificates It I t 30,821,960 If 'I " time " savings It " comnercial account WHen acting as reserve agent. 343,531,221 b. STATE INSTITUTIONS. 111. 2 1 10. 111 4 3 . . . -4-, a) (1) CO z; 'd (1) ..--1 a) F4 W k d O) ta 4-) HO 0.4 a) 0 0 . :73 g F-t W 0 ,--I P-i' , t> -' Pi $-1 : P4 a) P4 0 w (0 1=4 . . . O) 0 ..-1 0 'd ,-1 " : 31. : . . 25. 8 25. 1/3 7 1/2 : 19.1 : 12 1/2 . 0H 4.-1 g ,s1 . -d d : -3Q 9 . . t ) (c3 P:1 0 g ca -HT 0 a) g 4-) 0 E-4 $.-i d3 0HH Pi d d VI F-1 0,0HO:. op to 00 Pi IA 0 C1-1 (D . . o -,1 cf-1 -,--1 0 r-1 4-) -Pp., d . . ...1 44 az P4:1 r-i Pd o . . . . -4-, . . $. . . Pi . . . : . . g o o (t o . . . . o : CU . . . . . :. 24.7 . . .. . : . . . . : Per cent: Per cent: Per cent: Per cent: Per cent: . 17. 2/3 . 29. cent :vault. : Agts. : H ,k-3 d ..-1 -P 0H . .. . . . : With :: 4. 0 0 C-+ 5 . . . tri -,a, d T1 H . . In : tO d . g . . o . : 0 ..-4H4-) g 0 o cf) 12 : . . k4- o VI . . . rxi o u) o . . . b0 4-> .. zi a) cH : .4 .--1 I,- (00 u) o 0 g 0 (1) El (0 +) a),g, z 0 4 . . . . 4-, . . . i H0 VQ Per 4 : : 23. : 59.6 33. : 18 ° : : 22. : ° 9.3 . 1,511,000 80,000 39. - : 73.6 Amount 9.7 : 5,232,000 .32: 1,944,700 : : 54,000 1.32: 22,500 No report u 1/3 25 20 g 15 1/5 4/5 : .63 b 8.4 11.86 : .17: . . ° : : 14.3 6.60 20 1/8 23. 2/5 33. 74. ivie 64. 20 : - 3. ° 336,000 . 43.50 .. : 25. 32. 35,000 2. 10,000 5. 4,79,000 . .50., 27 1/2 20 ° . 8. 12. : 18.25 28. . : 61. .. 70. . 16. . . : 20 81' 20 5f 25. 19. 20. 10. 26.5 : 72.8 ° : 60. 10.50 41. 10. : : 48. 1/4 25. 10 3/4 , 14.1 : 60. 24. ° . 6.4 21. 5.8 : 25,000 7',.5: : 1,021,120 18. 18.50: 55. : 52,000 22. 18. : 83,000 . 563,000 : 360,000 . 68. 14. 12.4 64. . 32. 42. 20. : 12. 40. 6 1/4 50 26. 23.2 25 25. 32. 25. 20. 25. : 44.3 15. 75. 62. 15 20. s . : 26. 16.5 : 12.6: : . 15,000 81,500 28,022,907.50 85,219,000 15. 144,699,557.50 19. STATE INSTITUTIONS. 1 2 4 3 H +) o o Cl) CD C) 1.4 40 a) @ d 4-) o H a) 0 'd C.) 0 9-1 er : In nt :vault. : With : cH 0 CD 0 ri a) d 4-, H t00 0 0 ri 0 pq -P Xi i"--,4' ad ',1 0 0 F-1 CD Pq H 124 F-I P4 .. . . . . : cd 0 TJ,-; 5-i 0 0H 4 0 0 -P 0 H . , Amount . : 0 0 0 d : Per cent : Per cent: :19. 4-) (I) 4, P.Z4 . . . :40. Hd ri r-i Pi cd cd : Agts.: Per cent: Per cent: Per cent 25 Z ,0 bt) i--I F4 1). H o ,.. 0 f) o a) 5:', (1.) H +) H 7-1 ell P4r. M C) 0 w ,--i 4-4 tf2 0 H ..-1 0 a) 0 -P 4 *r-4 cd C.) 0 El H o ,4_, cd 15. 5 10: . . . . . 20. 8 12 : . . . . . 16. .. 15. 15. 70. 3/4 20. 6 6 : 12.50 9 : 15. . 70. 14.15 : 24.5 qa 27. 21. . 99. 6. 62. . 29.50 . 14.7 . 3.2 . 3.50 15. 5 25. 10 32. . 19.2 15 20 29. . 61. g8 1/4 : 22. . 60. : 58. 8,493,000 26. 19. 12. 637)000 31. : 70,000 1,974,000 31. : °. . 3/4 17.6 . 2.7 1.7 .43 : 15. : 274,870 5.1 5.8 2. 20. - 100,885 770,000 30. : 125,000 20 5. 10 5. 10 15 5. O. . 66. . . 34. : 8.98 . : 25.25 . 54.25 : 14.87 . 24.4 . 66.4 . 17. . 28.7 2/3 : 19.7 11. . 5. O. 1/3 2/3 : 31. . 4.2 . 6. . b.'E( l;c% . . 30 : 16. 4. . 1/3 5. 5. 21. 42.98 2/5 5. 5. 16. . . 3/5 29,600 30. 2.03 9.87 15. 1.8 . 30. 29,600 . 3. 91,075 . 13.87 688,800 1,573,000 . : . 2.9 : 137,000 : 5,000 NATIONAL BANKS. 4.4 T1 La cr-i 0 4 H a) r-I 0 -1-) 4 403 0 Q) 4-4 $-1 cd 0H 4-, o EA .4 -,--i 0 0.) +) E4 ii oi d -,-1 (-I 40 0HH 00 i 0 0 ,-0 r-1 (ll a) F-1 P-1 f= r-i pior:+4 rotti a) tD o : 0 o 1-1 Amount : Atlanta H $.1 tec13 : Per cent:Per cent.: Per cent: Per cent: Albany... .(See New York, clears through New York) E)33 e'd t.1) P-I 4-, b.o o cd ;.-1 cal (4 ..0 Pi a) -P c..-4 ,-1 c) T1 ..-i cd Name of City -P Z cra 0 Z F-i ,--4 Q) 'd 0 Q) Z C.) a) o r 5 r 4 1 22.8 . 10. . 6.2 6.6 : 1,032,000 Baltimore ° 23. . 9.06 . 6,98 2.78 4,402,21250: Boston . . : 16,847,000 Brooklyn .(Telegram undelivered. It is believed Brooklyn clears through N. Cedar Rapids 45. 26. 72. . : 25. 290,000 Cincinnati 74. 24.90 4. 40. . 6,100,000 Cleveland 42. 32. 10.50 : 5,828,000 Columbus, 0. 22.1 8. 6.8 3.4 . 1,696,145 Dallas 23.9 9.2 11.5 1.6 . 2,130,348 Denver 27. 28.50 : 50. a. : 5,668,000 :: : ' Des Moines 30. Detroit Dubuque In : ....: Houston 23.6 : ° . 306,510 14. 8.6 1.5C : 705,741 66. 13. (N. B. and State 7. : 2,970,000 combined) . 20. Lincoln Los Angeles Louisville 20.5 Minneapolis . : In money: : a2 117,000 b1:914,000 . 379,000 . 6,462,200 . 1,956,825 7. . 3,157,000 3.6 . 6,189,000 . 392,366 24.72 Milwaukee . 21. 20.8 Muskogee 700,000 . : 37. . : 21. ° 18. money: Fort Worth Galveston Indianapolis Kansas City, Kans Kansas City, Mo. 25. 60. 26.05 20.6 49. : 8.97 63. 28. 47.6 33.8 9.5 . 4 M_ -a 52. 23. . 44.50 : : 40. .b 25. : 11.25 11. ft4vTi-t4; a41 a w Iry (atecu.ctt4 rat thL) ikerwia:f eatti-hitaterdo Clot fi f( I,, 0.6 I A, - o giL14 271LrOt, b.,,,ark-Aeut 7Atheauf - -tttua.0 eet evt/) 7ititiritTit4 ft 6i-C-Uft: 21\a-4W-e4 /tbalt\ Attiat aftuce , eikiVito - Distribution Transportation and Car Other general expenses ;301.00 34.40 ;335.40 33.16 368.56 Commissary Car, etc. Strong Benedict Brown Ryan Chubb 11 03.85 83.85 83.85 41.93 41.92 Commissary ;8.29 8.29 8.29 8.29 .. Total 02.140' 92.14v 92.14i 50.22 41.92 368.56 IMO NATIONAL BANKS, BANKS AN D TRUST COMPANIES MEMBERS OF CLEARING ROUSE. Net Deposits 80% of Previous Aug. J. ,1914. Column Gold Liability 4.? 00 ,668 1000. Bank of New York, N. B A 820 ,000. 656,000. 658,000 Bank of Manhattan Company 41 ,900 ,000. 1 ,662 ,000. 1,330,000. 2. ,333 ,654 Me roh ant s National Bunk 21,158 1000. 840,000. 672 ,000. 674,049 Meohanios & Metals National Bank 65 )528 ,000. 3,394,000. 2 ,715 ,000. 2 ,723 ,479 Bank of Ame ri oa 26 ,499,000. 1 ,052 ,000. 842 ,000. 644,166 196 ,234,000. 7 ,755 ,000. 6,230,000. 6 ,249 ,399 24,790 .000. 984,000. 787,000. 789,600 Me ro hant s Exohange National Bank 8,858,000. 352,000. 282 ,000. 282,459 & Drovers Bank 2 ,171 1000. 66 p 000. 69,000. 69,009 ,822 ,000. 429,000. 343 ,000. 344,247 47 ,890 ,000. 1 ,900,000. 1,520 ,OOO. 1,524,635 3 ,746 ,000. 3 ,757 ,022 4 ,68 National City Bank Chemical National Bank National Butchers Greenwich 10 Bank National Bank. Amerioan Exohange 117 1971 ,000. National Bank of Commend 4,927 ,000. Chatham & Phenix Peoples National Bank 157,000. 157 ,278 21 ,852,000. 867 ,000. 694,000. 695,113 ,313 ,000. 92,000. P4,000. 73,824 3 1509,000. 2 ,807 ,000. 2 ,815 ,760 21 ,819 )000. 866 ,000. 693 ,000. 694,913 9,257 ,000. 367 ,000. 294 ,000. 294,495 2 Bank Hanover National Bank Citizens 196 ,000. 86,412 ,000. Paoi fio Bank Cent ral National Bank Market &I Fulton National Bank Metropolitan Bank 11 1595 )000. 460 1000. 368 1000. 369,122 Corn Exohange Bank 75 ,814,000. 3 009 000. 2 ,4.07 ,000. 2,414,340 24,077 ,000. 955,000. 764000. 766 ,330 91 ,241 ANN. 3 ,621 ,000. 2 ,897 ,000. 2,905 ,633 1 ,766 ,000. 70,000. 56,000. 56 ,171 ,625 ,OOO. 501,000. 401 ,000. 402,022 106 )457 ,000. 4,225 000. 3 ,380,000. 3,390,301 48 ,208 ,000. 1 ,913 ,000. 1,530,000. 1 ,535 ,067 Bowery Bank 3,403,000. 135 ,000. 108 ,000. 108,329 New York County National Bank 9 9127 ,000. 362,000. 290,000. 290,463 German Amerioan Bank 4,180,000. 166 ,000. 133 ,000. 133,2o5 115 ,201 ,000. 4,572 ,000. 3,657,000. 3 ,668 ,754 14,425 ,000. 572 000. 458 ,000. 456,995 Importers Traders National Bank & National Park East River Bank National Bank Second National Bank.,. First National Bank Irving National Bank Chase National Bank Fifth Avenue Bank 12 -2- $ 3 ,431 ,000. Liabi lit y Co lunn Aug. 1 *1914. German Exchange Bank Gold isq$ of Previous Net Deposits $ 133 ,000. $ 110 ,000. ' 110,131 5 ,562 ,000. 221 ,000. 177 ,000. 117,339 Lino() ln National Bank 15 ,522,000. 616 ,000. 493 1000. 494,303 Garfield National Bank 9 ,586 000. 330 ,000. 304,000. 304,927 Fifth National Bank. 4,241 ,000. 166 ,000. 134,000. 134,610 12 ,784 1000. 507 ,000. 406 ,000. 406 ,837 4,752,000. 189 ,000. 151 000. 151,661 Seaboard National Bank 29,267 ,000. 1,161,000. 929 ,000. 931,632 Liberty 26 1680 ,000. 1,059,000. 647 ,000 . 849,763 Nev York Produce Exchange Bank 10 ,795 ,000. '128,000. 342,000. 343 444 State Bank 24,115 ,000. 951,000. 766 ,000. 161,935 Baourit y Bank 12 ,753 ,000. 506 ,000. 405 ,000. 406 ,034 6 ,987 ,000. 277,000. 222,000. 222 ,276 10,125,000. 402,000. 322 ,000. 322,561 6 ,720 1000. 267,000. 214,000. 214,251 Brooklyn Trust Company 20,78S ,000. 825,000. 660 ,000. 662,013 7-ankers Trust Company 102 ,559 ,000. 4,070 ,000. 3 ,256 ,000. 3 ,265 ,929 -J.S. Mortgage & Trust Company 28,179 ,000. 1,116 ,000. 894,000. 697,121 Astor Trust 15 ,590 ,000. 61,000. 495,000. 496 ,710 20 ,543 ,000. 827 000. 662 ,000. 663,611 141,511 ,000. 5,616 ,000. 4,493 1 000. 4,506 1500 ,900 ,000. 234,000. 1157 ,000. 161,711 Tr. Co 11 ,883 000. 472,000. 316,000. 316,151 Columbia-Ehiokerbooker Trust Co 38 ,6 iss ,000. 1 ,535 000. 1 ,22ts 000. 1,231,144 Peoples Trust Company 15,156 ,000. 601 ,000. 451 ,000. 462,266 29 ,554,000. 1 ,173 ,000. 936,000. 941,261 Franklin Trust Company 7 ,541 ,000. 299,000. 239,000. 239,929 Lincoln Trust Co 8 1669 ,000. 344,000. .276 ,000. 216,039 Metropolitan Trust Co 20 ,436 ,000. 511 ,000. 649 ,000. 650,116 Broadway Trust Co. 13 L? 40.000. 553 ,000. 442.440. 443,749 76 ,S20,000. 61 ,460 ,000. 61 1643 9396 Germania Bank Ban/ of the Metropolis West Side Bank National Bank Coal & Iron National Bank Union Exo hangs National Bank Nassau National Bank, Brooklyn Company Tit le Guarantee & Trust Co Guaranty Trust Company 5 Fidelity Trust Company Lawyers Tit le Insuranoe New York Trust Company ?.., ' $1 ,935 ,521 ,000. -3Net Eeposi ts 604 Previous Aug. 1 .1914. ki leering Non-Member Banks. Gold Liability Column ; Bank of Washington Heights $ 1,253,000. 7,nttery Park National Bank 1 ,629 ,000. 73,000. 56,000. 56,516. Century Bank 6 ,535,000. 259 ,000. 207 ,000. 207 ,631 Colonial Bank 7,060,000. 280,000. 224,000. 224,663 Columbia Bank 7 ,196 ,000. 266 ,000. 229 ,000. 229,491 Fidelity Bank 1 ,018 ,000. 40,000. 32,000. 32,096 Mutual Bank 5,494,000. 216 000. 174,000. 174,932 3 o571 ,000. 142,000. 114,000. 113,946 Yorkville Bank 5 ,063 ,000. 201 ,000. 161 ,000. 161,290 I, i rst National Bank, Brooklyn 3 ,336 ,000. 132 ,000. 106 ,000. 105,922 10 ,531 ,OOO. 416 ,000. 15 ,291 ,000. 607 ,000. 466,000. 467 ,081 National City Bank, Brooklyn 4,536 ,000. 160 1000. 144,000. 144,439 North Side Bank, Brooklyn 2 .638 .000. 105 .000, 8A20.,+ 84.256 . New Netherlard Bank $ 50,000. $ 40,000. 40,122. Citi zens-Manufaoturers Trust CO. , Brooklyn Meohanios Bank, Brooklyn 335,420 NON-MEMBERS OF CLEARING HOUSE NET DEPOSITS AS OF JUNE 30 . 1914. National Banks. Bronx National Bank $ Gotham National Bank 995 ,00o. $ 39,0000 $ 31,000. $ 31,295 2 ,405 ,000. 95 ,000. 76 ,000. 76 ,232 Harriman National Bank 11 ,562 ,000. 459 ,000. 361,000. 366,320 Sherman National Bank. 2,139,000. 63,000. 66,000. 66,20? 823 ,000. 53,000. 26,000. 26,461 Peoples National Bank, Brooklyn 1 ,333 ,000. 53,000. 42,000. *2,529 Ridgewood National Bank 1 095 Am. 43,000. Baysi de National Bank, Long Island. 221 ,000. 9 ,000. 7 ,000. 7 ,222 Commeroi al National Bank, L. I. Ci ty 441 ,000. 17,000. 14,000. 13,641 First National Bank, Corona 533 ,000. 21 ,000. 17,000. 16,651 Jamul oa 613,000. 24,000. 19,000. 19,259 Ozone Park 477 ,000. 19,000. 15,000. 15,246 Whi t est one 182 ,000. 7,000. 6,000. 5,611 Port Riohraond Nat. Bank , 5.1 746 ,000. 30,000. 24,000. 24,073 Stapleton National Bank, S. I 531 ,000. 11 ,000, 16 ,652. Greenpoint Natl. Bank , Brooklyn II 11 " " 9$ II " $ 2 ,031 ,375 "0. 211000. 60 ,612 ,000. 34,505 64,492 ,000. 6 4,686 ,2115 State Ba.nks. Bank of the United States 4 1,936 ,000. ; 11,000, 62,000. 425 ,000. 11,000. 14,000. 13 ,6 41 1 ,956 $000. 76,000. 62 p OM 62,590 Bryant Park Bank 1 ,056 ,000. 2+2,000. 33 ,000. 33 1702 Chelsea Exo hangs Bank 2 ,280 ,000. 90,000. 72 ,000. 72,220 International Bank 1 ,461 ,000. 569000. 1+7,000. 46,541 Public Bank 8 ,960 ,000. 356 ,000. 264,000. 285,666 Twenty-third Ward Bank 1 ,722 ,OOO. 681090. 54,000. 54,566 Westchester Avenue Bank 566 $000. 23,000. 16,000. 18 ,4.56 Bank of Co ne y Island, Brooklyn 526,000. 21,000. 17 ,000. 16 ,651 Homestead Bank, Brooklyn '+93,000. 19,000. 15,000. 15,246 Montauk Bank, Brooklyn 616 ,000. 24,000. 19,000. 19 ,259 629 )000. 33,000. 26,000. 460,000. 18,000, 14,0004. j'+,4414 5,817 ,000. 231 .000. 165 .0004. 165,361+ $2,063 ,126 ,000. 61,612,000. 65,491 ,000. 65 ,697 016 75,430,000. 2,993,000. 2,394,000. 2 ,401 ,701 3 ,255 ,000. 129 )000. 103 ,000. 103 ,515 Empire Trust Company 17 ,431 ,000. 692 ,000. 554,000. 555 ,266 Equitable Trust Company 66 ,609,000. 2 ,651 ,000. 2,121,000. 2 ,127 ,267 Farmers Loan & Trust Co 96 ,179 ,000. 3,696 ,000. 3,117 ,000. 3 426 ,304 Fulton Trust Company 8 ,566 ,000. 340 ,000. 272 ,000. 272,629 Hudson Trust Company 2 , 477 ,000. 96,000. 76,000. 16,639 Mutual Alliance Trust Co 6,707 ,000. 346,000. 277 ,000. 277,642+ Transat 'anti° Trust Co,,,,,,,..,.,.. 29054,000. 62,000. 66,000. 65,600 Union Trust Company 51,935 ,000. 2,461,000. 1,649 0400. 1 ,653 Mg United States Trust Company 58 ,469 ,000. 1,656,00t. 1,661 ,659 Broadway Central Bank Bronx Borough Bank ... Bank of Flatbush , Brooklyn.... . Hillside Bank, Richmond Hill , , Bank of Long Island, Jamaioa 0 . 61,166 26,481 22.1_81 t Compani 0 s . Central Truir.; Company Comeroial Trust Company Citizens Trust Co., Brooklyn Hamilton Trust Co. , Brooklyn 5 , 995 000. 236 ,000. 190,000. 190,961 Home Trust Co. , Brooklyn 2 9912 ,000. 116 ,000. 93,000. 93,083 Kings County Trust Co,, Brooklyn 15 ,536 ,000. 617 ,000. 494,000. 2+95,105 Queens Count y Trust Co. , Jamaioa 1 .997 .000. 79 ,CANA. 63,000. 63 .391 60,000,000. 80 )24-3 )940 $2,519 ,936 ,000. 100,000 ,000. Crossed Out. Flushing National Bank 4 g,Ooc 4 6,420. + National Bank of Far Rookaway 2S1000. 22,46g. + Mariners Harbor National Bank 9,000. 7,222. + Richmond Borough Nat. Bank 13,000. 10,432. + Tottenville National Bank 9,000. 7,222. Bank of Europe ......... 67,000. 69,12. Cosmopolitan Bank 16,000. 14,444. 1.249.000% 1.002.247. 1,421,000. 1,140,267. 15,000. 12,037. Tottenville National Bank 3,000. 2,407. Richmond Borough Nat. Bank 12,000. 9,629 Mariners Harbor Nat. Bank 5,000. 4,012. J. F. Morgan & Co 693000. 556 091. Kuhn, Loeb & Co 693.000. 556.091. N. Y. life Insurance & Trust Co. Agsled in plaoe of above. National Bank of Far Rookaway 4 1,421,000. 1,140,267 + These banks rare unable to take the proportionate liability allott- ad to them and the amount was reduced as indioated. The fol1ouip00 otatement of Olaah Reoorves is based upon the report of the Comptroller of tho Ourream, sliming the condition of National Banks on December 5. 1907. Centre/ Resorvo OltioshOw York Olt. Chicac0 . 3t. Cash Oash On Hand Reguired 0206,098,000 4180,448,000 54,792,000 56,591.000 21,826.000 26.774,0(X) 0289 463 000 '257.066.000 &woes vsso 66o* foo 606 Deficit 425,660,00t 1,797,000 4 948 000 102.397,000 Pereentage Szeoes. Gash -. so O. 66 s. Regorge CitiesSeston Albany Brooklyn .. . Philadelphia. eitteburg Baltinore 420 974 000 3 050 000 1 726 000 24 704 000 /8 056 000 6 026 000 2 705 000 Washington..Savannah.. 170 000 aallas ***** 2 489 000 2 400 000 1 499 000 Galveston.. Houston.... 1 464 000 New Orleans.... Iondsville Fort worth... 0an Antonio.... Waco 60 666 Cincinnati. . 966 ocla 201 907 000 383 000 6 141 indianapolis. 5 728 000 2 332 000 3 072 000 n1lwaukee 4 512 000 Cleveland Columbus Detroit .... cedar Rapids Des Minas Dubuque 2 957 al° 697 000 1 296 000 us 000 Kansas City, ho. St. Joseph 5 468 opo 5 726 000 1 044 000 518 000 4 990 1 199 000 Omaha... ..... 4 086 000 hlunsapolis St. Paul Heneas Oity, Han. Wichita Denver Pueblo ...... Salt Lake City.. 'Axe enrolee 6an Francisco Port/end Seattle 703 000 15 062 000 1 019 000 1 209 000 4 051 poo 5 118 coo 1 979 000 2 893 000 417 468 000 2 000 000 2 046 000 18 807 000 17 030 000 5 879 000 4 785 000 261 000 3 000 000 2 468 000 1 683 000 2 162 000 486 000 2 077 000 1 957 000 655 000 6 046 000 5 156 000 2 508 000 6 118 000 2 471 000 4 264 000 535 000 1 162 000 323 000 6 092 000 4 640 000 1 033 000 635 000 3 799 000 1 072 000 .832 000 6 904 000 7 520 000 1 127 000 818 000 6 475 000 9 600 000 4 306 000 4 090 000 03 506 000 00 1 068 000 320 000 5 897 000 1 026 000 446 000 2,082,000 91 000 536 000 60 000 184 000 297 000 255 000 623 000 0 6.6 *66 77% 60 066 116.7 95 000 562 000 486 000 248 000 162 000 134 000 2 000 624 000 922 000 115 000 66.6 06 *5 *5 a* II 0 1,191 000 120 000 129 000 2 848 000 2 459 000 108 000 609 000 2 422 000 5. 69.7 48.5 59.7 87.7 117.5 4 4a2 000 2 327-000 1 197 000 7157 076 000 .00.2.0000 06 124 000 110.3 66 176 000 2 046 000 64 666 606 666 / 050 000 272 000 Se Af..9.01Z2 2 Oash Hard On mine ...... Bow Hampshire Vermont. Massadhusette Rhode Island Connecticut.New York New Jersey Pennsylvania Delaware 0ary1and Dist. of Columbia 41 876 000 1 211 000 926 000 6 748 000 1 200 000 3 123 000 415 004 000 14 066 000 7 720 000 20 253 000 553 000 1 650 000 64 000 44 506 opo mississippi.... 3 536 000 1 996 000 1 112 000 7/4 000 1 592 000 1 007 000 1 442 000 610 000 Texas 5 100 000 Kentudky 684 000 1 886 000 West Virginia North Carolina. South Carolina.. Georgia.. 42 8010 000 1 499 000 10 707 000 1 946 000 5 697 000 424 557 000 20 424 000 10 666 000 52 796 000 1 057 000 14 704 000 10 574 000 15 854 000 6 418 000 6 046 000 6 094 000 7 795 000 2 766 000 70 571 000 / 402 000 1 298 000 2 502 000 Inalana Michigan 0 Wisconsin.-Iowa.... iiaaouri North Dakota South Dakota Nebra.m. Kansas ,ontana ,".7-yering... ... Golorado New 2exico Oklahoma Washington Oregon California Idaho titakomo Nevada Arizona AlaStm .. 2 806 000 3 230 000 1 718-000 705 000 2 102 000 627 000 2 245 000 16 131 000 2 674 000 49,553 000 730 000 0.0 44. O.. 606 000 04. 0.0 60 a 45. 65. 77.9 11702 2 418 000 10202 187.7 f 82.5 169. 103.2 04. 145.4 112.8 82.4 96.1 40 S.. 04. . 6 929 000 *0w *ow 2 39.1 000 1 805 000 4.* 2 660 000 2 326 000 1.522 000 61.9 91.1 004444affaa.faa a 21 528 000 45.2 206.2 0. 0-4 25 283 /00 5802 8204 3801 O.. 829 000 630 000 447 000 7 418 000 772 000 1 655 000 2 520 000 49.2 71.7 1 908 00 63.6 58.6 ; 2 989 000 2 437 000 POIrSentage Faceso OaSh 61.6 101.5 77.6 Os. 69.6 42.4 71.6 406 4205 0 90.3 28 582 0010 3 752 000 1 631 000 1 544 000 5 150 000 32 705 000 2 674 000 0 6?6 000 1 360 000 582 000 704 000 748 000 65 000 3510 Coo 930 000 1 098 000 1 739 000 2 757 000 2 054 000 926 000 3 466 000 717 000 2 907 000 674 000 40 3 027 000 4 545 000 2 321 000 1 055 000 3 511 000 661 000 348 000 272 000 321 000 80 000 8 549 0(X) 0.0 *.o .04 9 096 000 5 246 000 8 925 000 4 020 000 4 245 000 726 000 5 469 000 1 464 000 42 189 OW Arkaneas ..... 716 000 1 565 000 Ohlo....-...0.. 765 000 00. 4.. 6 852 000 3 551 000 2 414 000 22 858 000 Isolsiana . Deficit 683 000 5 959 000 2 3930X) 196000 67 532 000 Tennelsce...... Alabama 4 924 000 797 °op 6 558 000 2 946 000 22 543 000 504 000 743000 132 000 23 236 000 1 444 000 4 582 000 1 836 000 5 879 000 1 000 000 1 212 000 12 528 000 1 456 000 3 440 000 4 734 000 48 14/ 000 Florida &moss O.. 04. 150.45 248 000 159.9 au 12405 04. 105.7 66.9 168.8 233. 4 365 000 699 000 233 000 432 000 427 000 /0 80,2200 0149 037 000 0262 962 000 0113 940 000 / *40 404 0 46 a.. 000 4.. 0 66.5 8405 396 000 2 61.9 80.06 007 000 118.5 131.5 164.6 568 000 5 114.3 /29.6 V00 40 - a 15 000 /6-00o 5 9(34) 7G. Cash Cash Required 206,098,M New York City 56,591 Chicago 26 774 St. Louis Central Reserve Citie s 0289 463 W Boston Albany Brooklyn Philadelphia. Pittsburg Baltimore.... Washington... Savannah New Orleans Louisville... Dallas Fort Werth. Galveston... Houston 0 20 3 1 24 18 6 2 974 M 058 726 704 056 M 025 703 170 2 489 M 2 408 1 499 965 1 231M 464 907 383 San Antonio Waco Cincinnati 6 111 M Cleveland.... 5 2 3 2 4 Columbus... Indianapolis. Detroit Milwaukee.. Cedar Rapids Des Mines... Dubuque Minneapolis.. St. Paul Kansas City,Kan. Wichita Kansas City, ED. St. Joseph... 718 332 072 957 M 512 697 1 296 325 M 5 468 3 726 1 044 518 M 4 990 1 199 703 Linooln Omaha 4 Denver pueblo 1 019 086 M 5 061 Salt Lake City Los Angeles San Francisco Portland Seattle Reserve Cities Report of 1 209 4 051 M 5 118 1 979 2 893 rxoess On Send 3.80,448,M 54 792 21 826 0257 066 0 17 2 2 18 17 5 4 3 2 1 1 2 1 6 5 2 5 2 4 1 468 000 046 807 030 579 785 261 025 468 683 162 486 077 957 655 046 156 508 118 471 264 535 162 m Deficit 025,650,M 1 797 4 948 032 39711 .11.) Cash 3,506 M 1 058 320,m 5 897 1 026 446 M 77. 2,082 91 536M m 60 184 197 110.3 255i m 613 1 050 115.7 272 95m M 562 176 2 046 M ... 134 ... 2M 624 6 092 4 648 1 033 922 11 633M 3 799 1 07/ 832 6 934 m 7 520 1 127 1 818 6 473 M 9 600 4 506 4 090 66.6 486 M 248 162 323!! !'169_048 Percentage Excess 115 M 1 191 M 128 129 69.7 48.5 2 &48 M 2 459 108 609 59.7 87.7 117.5 2 422 M 4 482 2 327 1 197 26 124 M A'114 952 H Comptroller of the Currency, showing the condition of National Banks on December 3, 1907. Cash Maine Required 4 1876L1 11U 'aw Hampshire 916 6 748 M ;e- Massachusetts Rhode Island Connecticut New York New Jersey Pennsylvania Delaware Maryland 2600M 1 908 1 499 10 707 LI 1 230 3 123 1 946 5 697 14 066 7 720 20 124 10 666 32 796 45 004M au 557 M 20 253 55311 District of Columbia. Virginia Cash On Hand 1 650 64 044 306 LI 1 057 IL 2 393 196 067 532 11 West Virginia 3 536 1 996 North Carolina 1 113 714 5 832M 3 551 2 418 1 444 1 1 592M 4 581 11 South Carolina Georgia Florida ,Ilabama Mississippi Louisiana Texas Apkanclas Kentucky Tennessee Ohio Indiana Illinois Michigan Wisconsin Minnesota Iowa Missouri... 11 1 836 3 879 610 1 240 765 la 1 212M 5 100 12 518 1 456 684 1 885 3 440 4 734 2 414 42 858 M 048 141 hi 9 096M 14 704M 5 246 10 574 8 925 15 854 HXOB Excess Deficit Cash 49.2 71.7 63.6 58.6 58.2 82.4 24IL 797 583 3 959 11 716 2 574 9 553 M 6 358 2 946 12 543 45.2 38.1 61.9 91.1 45. 504 11 743 132 2062. 323 236 M 2 296 11 65. 77.9 117.2 102.2 187.7 1 555 1 305 730 2 989 it 007 829 1 442 00.0.0 82.3 2 437 4 020 M 6 416 IL 4 243 3 726 5 469 1 464 6 046 6 394 7 795 2 786 042 189 M 1 402M 370 571 11 169. 103.2 630 58.4 145.4 112.8 44711 7 418 772 1 555 2 320 325 283 ***** I 82.4 96.1 61.6 101.5 77.6 59.6 5 608 11 5 328 6 929 2 398 M. 42.4 71.6 42.5 90.3 1 803 2 668 2 326 1 322 6 302 II 2 806 Kansas Montana 2 332M 2 396 4 545 3 230 IL 6 087 LI 2 757 11 2 034 Wyoming 705 3 752 1 631 5 568 1 34411 5 150 North Dakota 3outh Dakota Nebraska Colorado 1 1 718 2 102 New Mexico Oklahoma Washington 298 627 Li 2 243 76-13111 5"2- 705M 2 321M 035 Oregon 1 California 3 511 Idaho 661 Utah 348 LI 272 Nevada. arizona laska 321 5 348 2 674 7 876 1 360 581 la 704 746 80 65 8 54911 319 35611 149 037 M 3262 962 M 66.3 84.5 61.9 88.0 118.3 131.3 164.8 114.3 129.6 93011 1 098 1 739 926 3 466 717 Li 2 907 a16 674M 3 027 1 639 4 365 130.4 159.9 124.3 105.7 66.9 158.8 699 233 M 432 427 :)10 822 M 0113 940 M 133. 1511 1511 1511 76. -2- rew York, at tIne date of -VAG statement, showed. a Eofieit Leserves of 45,650,000.; Chia,zo - 1,797,000.; St. Laais - 7,4,c148,030. en, "In explanation would say that I first figured the exact amount in cash that central reserve city, reserve city, and country banks (by States) were required to keep in their own vaults under the law, based on their deposits, as shown in the Comptroller's report at the close of business December 3, 1907. cash that all such banks held in their vaults. I then took the actual The results Show that, while New York City banks were under their reserve to an amount exceeding $25,000,000., the reserve cities as a whole were over their reserve, even though a few of them showed a shortage, and that the State banks in every State and Territory in the United States, outside of Alaska, showed an excess of cash required of 76%, or $113,840,000. These country banks could have carried an average excess reserve over requirements of 54%, and then have divided the rest up among the three central reserve cities of New York, Chicago, and St. Louis, which would have resulted in making up their entire deficit of $32,000,000. Instead, therefore, of the so-called "big interests", and particularly the New York bankers, having brought on or purposely caused the panic, as has been so kindly suggested by various members of Comgress, these figures show the whole trouble to have been due to actual hoarding of money by country banks in all parts of the United States, particularly in the west and South. You will notice, in the enclosed tables, that many of the banks in the Southern and Western states carried over 100% more cash in their vaults than the law required. The banks in Georgia held 187% more cash than was necessary; in Alabama 169%, in Texas 145%, in Colorado 164%, in Oregon 159%. These figures clearly show that, while New York was making every effort to protect the rest of the country and live up to its position as a central reserve city, the country banks were all taking more than their share' and, further, that they could have carried an average excess cash reserve of over 50% and still have left enough funds for the central reserve cities to do business without friction." Name of Bank Reserve National Bank of Commerce 17.6% National City Emergency Currency Outstanding C. H. Ctfs. among Assets C. H. Ctfs. among Liabilities Other Extraordinary Liabilities ;-015,071,000 011,370,000 21% 12,206,000 13,430,000 Citizens Central 36% 1,143,000 02,000,000 Hanover 24% 7002,000 30,000 National Park 17% 5,127,000 Importers & Traders 21% 1,060,000 1,310,000 American Exchange 17% 3,523,000 1,620,000 1,U97,000 Union Exchange 1,209,000 950,000 450,000 20% 04,484,740 4,810,000 2,735,000 2,662,000 ce"/ . Amount of purchased paper now outstanding* Amount of paper matured from July 28th to August 14th, inclus IVO Amount of sales, July 28th to AmgastAS: Amount of paper maturing to December 37et, o Amount of ;grassed paper now oatetandimg:/t=7.3 Amount of paper matured from July 28th to August 14th,ississive, dad, Amount of sales, July 28th to August 14t047:M44'v Amount of paper maturing to Deossber 31sta7I`C;3 le/ 4440-1, # 3,965,000.00 Amount of purchased paper now outstanding, Amount of paper matured from July 28th to August 14th, inclusive, 1,250,000.00 Amount of sales, July 28th to August 14th, C 290,000.00 nount of papor maturinc to Dow:lbw 310t, $ 3,590,000.00 # (,44,90,r, Amoant of purchased paper no mtstamdfmg, ilunt of paper matured from July 28th to Azimut 14th, Inclusive, Amount of sales, July 29th to August 14th, a7--fre-o-uce -; eC 0 ,4,2,4-767 $ 7 ôo a.C c o. PAPER OUTSTANDING - AUGUST 21, 1914. On hand (G. S. & Co.) Foreign Buyers Private Buyers New York City Banks New York City Trust Companies Arizona Arkansas 1,647,500 4,532,000 855,000 25,322,312 17,464,000 5,000 25,000 California Colorado Connecticut 5,000 35,000 135,000 Delaware 25,000 Iowa Indiana Illinois 60,000 465,000 4,084,000 Kansas Kentucky 10,000 40,000 Massachusetts Minnesota Missouri Michigan 4,800,000 140,000 205,000 360,000 New York (Exclusive of N. Y. City) New Jersey Nebraska 1,736,000 1,474,000 103,000 Oregon Ohio 190,000 1,092,000 Pennsylvania 6,125,000 Rhode Island 865,000 South Dakota 15,000 Texas 20,000 10,000 10,000 Utah Vermont WaShington, D. C. Wisconsin West Virginia Washington 75,000 553,000 25,000 90,000 TOTAL 72,597,812 Leading Dealers in Commercial Paper. NEW YORK itteigt;,>, Goldman Sachs & Co. Naumberg & Co. Holbrook & Corey C. Blake Bros. & Co. C., Hathaway, Smith, Folds & Co. Bond & Goodwin Bayne Hine & Co. Campbell Heath & Co. Cs. S. Moseley & Co. C. klarkwald ec Springer c. CHICAGO \\_A.G. Becker & Co. George II. Burr & Co. W. T. Rickards & Co. C14 A- 4ad4C BOSTON Curtis ec Sager W. 0. Gay & Co. Well Farrell & Co. jcA/6-tet)6Z Codpn4 PHILADaPHIA Dunne Bros & Co. Bodine Sons Co. CtaA dCtet:011 ST, LOUI Moluney & Co. RTFO \ Stedman & ftedfi 10 4,00 .0* kot - -90 o0,t-kn.al ca)( ed/ ot_S zoo_e .644 4, 0 o-e 103.44. (9de, . 24_ arm #00 7./67,ssa_ Oil_ r/47 00 0 ,csIrif)-0-0 0-4 s-00 .60 (>1i. 77T9%600 le :7? g 3164' 4 sotto / 4 0 0-0 to-e-a 1?.>lo,to.0 45-90 , 5 7 7.5-4, ,0 4-6 ibra .0 0- 0 Chate_re-6-4 -01M90 li(n-arttee 70 IL9'ep ?a-Apo-4 .61,0 'Ft tiO-d Ta - MATURITIES TO DECEMBER 31, PARI 3 L ONDO N Maturing Indebtedness Maturing Indebtedness October November December Coupons 0 NI) August September 1914. 10,286,395. * 3,883,648.19 10,940,089 3 t,P 1,323,193.00 **747,617.50 1,976,260.00 29,719,088. 899,160.00 12,387,829. 6,762,953.00 1,616,865.00 log 4h 63,333,40l. ' X y4,762,808.19 $11,679,271.00 ,p747,617.50 * Of this amount 0747,617.50 is payable also at Paris. ** This amount is included also in the (3,863,648 payable in London, the coupons being payable at either city. MATURITIES TO DECEMBER 31 1914. PARIS L ONDO N Maturing Indebtedness _Callyto_ns Maturing Indebtedness Pcs. Fes. August September 2,170,000 October 2,310,000 November 6,225,000 December 2,605,000 413,310,000 *793,182-7-4 184,327-16-0 Coupons 7,0004000. 13,865,094 10,450,000. 35,550,000 8,500,000. g 977,510-3-4 Fes 61,500,000. rcs.3,865,094 Of this amount £153,481:9:6 ie payable also at Parise ** This amount is included in the £793,182 payable in London, the coupons being payable at either city. * 4-CT-coo )! gi X 30 Oo 000 , O? cc s&-6 0 ,cco 0 4c;-,--0 441 0 91-/ 7, tky,L6), (caw 4-5 %ft"' kg% c4-tr 04,660... /5So-m. o et-to c51,6eqp. 42-e-e , , to--o kd-eta *0-4 00-v. 1 Se o-10-0 eltirribrit, 24,2,000 ,064, LS-.afie larrlopoo. i415-e re , D- '7 doe, m 61) 186i 000i o e ed. 04 It 04- tt.6 .a..tk5 0 . 0 114 cir. eita, co, r,0,90 14047 1,6140,90,0 ?7Ce 0-0 7,64. etez 1064.4 f,c,87 tiC0d-41 073,6t/-191.61-4) ;/,c 9 9, 1,101 too-0,00-o S:).re 7 o fogLe 14-0 sef, e -94 ,13.04 2., ot) C. Jrt, 04--o ,6,0 7.1 Interest 1 466,064.00 Dr Int on money in use as per average balance sheet Less 2201.74 Int on balance in Ch&se 0354.50 Int on balance abroad *1705 uet 10,656.24 interest cost to date 467,507.76 Dr Int on money bill Tov. 30th 7rom 28121 to say EUReual 1611L1 for 35 das London 1MM 4s here) " Int on 611U ( $93.333.00 2% probable interest cost to Yov. 30 Grand total interest loss 11,600. 481,733.00 4139,240.76 SO:n:9C ;Goo Jo suTaccms pio0 '53uTq.uTaa 'soicro oq.e nr$oo Jo arplaTqs O. mot 2 O 000'I evap rel.oz q.soo go sasueaT o eq:u 2aTatTu rrITE Ott) (un.uTad 4900 go o.2uTOITTIts /Aar, 31,107. ou q.L poTgT4ou auTan2T1) t.,111102 Jed Fi ao '00g41 sset *OT."9"Ut pwca-D T1.1.01: *OTeTT 00eTC OnO't "CMg CL9'02 //) Recapitulation Pima (Est Nov 30, 1914). ;139,240. 30,670. Total Interest loss Total expense 169,910. Total Pounds .= equal g .03394 per E Average cost of E equals Interest and expenses Total estimated cost 4.89309 ,03398 4.92707 3. Reca-Ditulntion (To date Oct. 26, 1914). Total interest cost Total other cost 41;0,600. 11,300. Total E ZMU equals 3.44 Lverage cost of i Cost 4.89309 .0344 4.92749 68,800. Not Counting Interest. To date cost 2M Rate 5 5. g11,310. 5,655. 4,893,093. 4,098,748. Estimated to Nov. 30.17 4 6,134. 4,893,093. 4,099,227. 30,670. Pra-Ck 6i. Ca q (1/0 - 17-tq 6-nt op Ci/m gad 6:9m--= ,s-G .=76,5 1/2. Jetta. 4 18, 6 C &.6.046 q/aiku &LP reig,2ta 6; atifdaw. aant) . 9"?,-(cY etuct,' P&L' del& kozeg - piterr' -ta_eocvt, &trio_ 76 &Of L'jzw che plQ(a_ 16 7, . - erfatov. cocusinaatoa , CO-0- 2 e 071-E es - fia)10 b-ft 3/ fervierit (14 cf_tdveri-e7; (erfteiv TILF- 641146ozrwi croi "T-- tfava 01-0-Ah71.-- aufflea,net. (al xs4erict _ "_2=tax,ijccuzt latat-tio Pne-kg 4-et) fScgt , 01-11 . ognt oforP/?, f_tE) Vitutra, e/x/947.-vatja f709/-W,6-(;, 6,77) , 43,9 Ito traia-fr tgataltel/0 eilkci,jh, 290 trit &rotate, de g-__01-4 L favAama Iy t _15AUsti2tv5_ dO*L1(0.-74. arce-co- hr Fd, v f bece_ci, otidet,4_agelifeti .,, GcRraipeuct_ )(90-to (----7mt-bi 6'41c. 7xcda\--- ogrws bit. tarszatvitehat /ca Ar. etwericettca, , actfcQ't- awl ) cat r'-de 61t,i. 4,2/0 morikuti _LLtat2.0229)(5-6tsi 5 r '7)m CdArso &tc.c; /4knic # d2iaftec. &ta-niftt ga,ww_rovffip ent) t. . ' 0 Ptex: 6465-14. ExrAcitef G-wmt 67-4-19Leetiztl_t\e-iro\cie sgemcwww Gioad-±- k(42_1;751-a _ _foyz2i,t3 ela6C1/1-50 71;(7 awed:,_ fc3- eXaCklitlits8 IC55g24". kerAjaii-C - G7SA7ii Ot9CLUJC915-ere _0X/6214414: edecte _ dizo ce-eina- CeteafTT au_a_ ,c-CMuLL__ (6gatt; e'3ceiattit aul_7215ti Ateettlip ffeci-vt, fiak evxd 2tary7 Re?-:( 67, - 6i----dozt.e_ a444---AFee. etcYckaw ata)t- arrArdr-A-- Z2tate_ atc_thau ?mut._ CA4 a gattf< Po t:ett), 10.62( /of/ ittpui ount4 R, Aziet flyac; oRK gal 01(a/tittle's 07k...,-Che4 Aga Bre& c &way- etdrE Pcut ttZ Pttd cde conRa_c9fiviieu, atire1- digaSitLewv1,7Tiaaaht toviar-t-ht: avnikirso rt- eattau9 (17. eattx eakwirAtibx_ SEe9,0 eget' Ow ecvexceti_ scktara4;., Teilattte, I R0.6260810 OtattAC, f?Ltitulit,Q diurto;L___M110..r' rt*aa e - 17i1t Pr324462, 441tei-araciel_c"catti- Etioltd-6.4 a-5 07.1ziJca tt.) exte aria erx,t1144_ 710 Olkett eih) C1.44 Cm- , '71as:40 CU/4AL auto_ gato &t Otal rierl 16-44 L iti6t -440444- ° /A4p Thc44L h_er;A:i 41214zetu:ititi,awkidiq chttitia at4.41, at-,1( (Nr71/14,_412 0 (.4( -7 ,eirry Arta an fifti/ emu' -1?1 et. 11--fec "A- t_t t ft t It. el 1-L-o 5-/c2( j t (7' X-& I rt.,0 Z47- ,br ilt,P-e- aytt 7-eitcc, 4-7L1 A (--- a (i70 e '&14 21,,t IL 77h /1vvryx, 1:vAni-40 2 ItAr-zs 4I'Lx7 ,V14.111:k, r u_e4 Azt,c7z OL t4M 0 67/ VI-. 1- .1,14 3 4 - .7 r.IX± October 10, 1914. R3: PRICES PAID BY BANK OF iNGLDD FOR GOLD BARS. During the past four years, The Benk of England has paid between 77:9 and 77:9i- for Brs. A fair London price, under the present condtions, would be about 77:9i, and if they desire to encourage Gold shipments, 77:9 Deducting normal ship-ping charges would make the Ottawa price 77:71 to 77:7:. October 10, 1914. RT: PRICES PAID BY BANK OF TGLAND OR GOLD COIN, Diug thE past four years, The Bank of ngland has never paid less than 76:3-i-, nor more than 76:5. A fair average price would probably about 76:4,1'. The Bank of England is now paying 76:34 in London d in They are, therefore, charging about per Mill for freijat and insurance. This is about 1 per Mill above the usual cost of transportation Ottawa. and insur. mice. The price, 76i'04 is for Bars. Penny less than the parity of 77:6, now paid The prsent bar price is the legal minimum, and he additional reduction of -1"., Penny is, therefore, equivalent to raying less for coin than th equivalent of the legal minimum for Bars. Under the circumstances, The Bank of England should pay at least 1-4 Pence above the present price, fal d would be justified, if it desires to attract Gold in parng 2 Pence ebove the present price. This would make the Ottawa price 76:2-2-. On e theoretical 'basis, it would appear that an Ottawa price of 76:2--i-T would be equivalent to a London price of 76:54. As a: matter of fact ho-ver, it would not equal that, unless the Bank of .gland was compelled t pay an abnormally hi ja premium rate for insurance, and in such case, the qu.estion arises of whether they should not themselves bear the increase in exrense. etex. Referring to statement No. 8 and to meet the conditions outlined therein the following tentative sugges- tion is submitted for a credit of approximately twenty million pounds sterling. That ninety day sight bills of exchange should be drawn on agreed acceptors in London or on the Bank of England by a committee in New York representing strong guarantors from among the National banks, trust companies and private banking firms in the United States. That as and when required to supply an unusual demand for ex- change these bills should be sold by the Committee and the proceeds loandd against the obligation of stock exo change houses secured by recognized, approved stock exchange collateral, accompanied by the guarantee of the stock exchange firm to maintain a margin of at least twenty-five percent. At the maturity of the bill if the purpose for which it was drawn was accomplished and axchange was available at normal prives, payment for the stock exchange loan coilld be remitted in payment of the acceptance. If exchange was not available at normal prices a request from the Committee for a renewal of the bill could be granted. The granting of this credit is predicated on the understanding that the ninety day bill would be renewed but once, but that if at the end of this period4settlement could be made -2 in gold only, a further renewal would be granted. This situation 'contemplates a corresponding credit from this country to England if the international exchange situation should be reversed and we should be in a position to draw gold from England to an extent that would weaken England's financial position to our mutual disadvantage. Leading Dealers in Commercial Paper. NEW YORK tvt4q Goldman Sachs & Co. Naumburg & Co. Holbrook & Corey Blake Bros. & Co. Hathaway, Smith, F01d3 & Co. Bond & Goodwin Bayne Hine & Co. Campbell Heath & Co. S. Moseley & Co. Markwald & Springer CHICAGO A.G. Becker & Co. George H. Burr & Co. W. T. Rickards & Co. BOSTON Curtis & Sangr W. O. Gay & Co. Weil Fa ell & S car Co PHILADELPHIA Dunne Bros i Co. Bodine Sons Co. ST. LOUIS McCluney & Co. HARTFORD Stedman & Redfield Leading Dealers in Commercial Paper. NEW YORK artgq Goldman Sachs & Co. Naumburg & Co. Holbrook & Corey Blake Bros. & Co. Hathaway, Smith, Folds & Co. Bond & Goodwin Bayne Hine & Co. Campbell Heath & Co. S. Moseley & Co. Markwald & Springer cia CAGO A.G. Becker & Co. George H. Burr & Co. W. T. Rickards & Co. BOSTON Curtis & Sangt,r W. O. Gay & Co. Well Fa roll & Co. S. PHILADELPHIA Dunne Bros & Co. Bodine Sons Co. ST. LOUIS McCluney & Co. HARTFORD, Stedman & Redfield H. S. F. October 1, 1913 January 1, 1914 8c CO. 4 84,400,200. 84,198,651. April 1, 1914 103,429,645. June 30, 1914 102,9641189. CORPORATION BOND NOTE AND MATURITIES August 20, 1914, to January 2, 1913, inclusive. .1.11111101.111.141111 RAILROADS AUGUST: 27 Michigan Central RR 6 / Notes . . 0 ..... ,000,000 cJ 000 COO. SEPTEMBER: 1 1 1 15 13 15 15 13 / Pennsylvania RR Equipment 4e, Series A . . ..... St.Louis & San Francisco RR 6 / Notes, 42,600,000. (In default). Wheeling and Lake Erie 5 1 Receivers Ctfs. . . . . New York Central & H R RR, 5 /. Notes Chicago, Indianapolis & Louisville By Equipments. . Frisco Construction Equipments Georgia Southern & Florida Equipments New Orleans, Texas & Mexico RR Equipments Atlantic Coast Line Equipments Canadian Northern Ry Equipments .. .. .... .. . . Central of Georgia Ry Equipments Chicago & Eastern Illinois RR Equipments Denver & Rio Grande Equipments. ...... . . . . Lehigh Valley RR Equipments Minneapolis, St.Paul & Sault Ste Marie Equipments . New York, Ontario & Western By Equipments St.Louis & San Francisco RR Equipments. . . . . ... Seaboard Air Line Ry Equipments . . Toledo, St.Louis & Western Equipments . . . 2,459,000 101,000 . 5,000,000 21,000 112,000 25,000 56,000 225,000 255,000 38,000 165,000 73,000 230,000 60,000 35,000 18,000 26,000 . 50,000 Ay74.9o0 OCTOBER: 1 1 1 1 / Notes Erie RR 3 Muscatine North & South Ry 6 / Notes Red River & Eureka RR 1st Mtge 3 / Bonds South Carolina & Pacific By let Mtge 6 / Bonds. . . 4,350,000 425,000 313,000 104,600 2 CORPORATION BOND AND NOTE MATURITIES OCTOBER 15 (continued): _471, tQc. Chicago, Indianapolis & Louisville By Equipments. Bangor & Aroostook Equipments Buffalo & Susquehanna By Equipments Canadian Northern By Equipments Chesapeake & Ohio Ry Equipments Chicago & Alton RR Equipments Chicago & Eastern Illinois RR Equipments Chicago, Rock Island & Pacific By Equipments Cincinnati, Hamilton & Dayton Equipments Colorado & Southern By Eqiipments Erie RR Equipments Ft.Worth & Denver City RR Equipments Hocking Valley RR Equipments Iowa Central RR Equipments Mexican Central By Equipments Minneapolis & St.Louis RR Equipments Minneapolis, St.Faul & Sault Ste Marie Equipments Mobile it Ohio RR Equipments New York Central & H R RR Equipments New York, Ontario & Western Ry Equipments Pere Marquette RR Equipments Rutland RR Equipments St.Louis & San Francisco RR Equipments Seaboard Air Line Ry Equipments Texas & Pacific By Equipments Wabash RR Equipments $ 33,000 45,000 27,000 250,000 170,000 72,000 124,000 265,000 146,000 52,000 202,000 19,000 37,000 15,000 50,000 18,000 61,000 90,000 348,000 36,000 186,000 100,000 361,000 25,000 260,000 67,000 (r/9S-1'461) NOVEMBER: 1 1 1 15 Hocking Valley By 3 /. Notes Notes New York Central & H R RR 5 Pennsylvania RR Equipments Receiver's Ctfs Oklahoma Central By 5 Alabama Great Southern RR Equipments Ann Arbor RR Equipments Atlanta, Birmingham & Atlantic RR Equipments Central Vermont By Equipments Chicago & Alton RR Equipments Chicago, Rock Island & Pacific By Equipments. . . . Cincinnati, New Orleans & Texas Pacific Ry Equipments Erie BR Equipments. Grand Trunk By of Canada Equipments . . . Kansas City Southern Ry Equipments Missouri Pacific By Equipments New York Central Lines Equipments Norfolk & Western By Equipments Rock Island Improvement Co. Equipments St.Leuis & San Francisco RR Equipments StLouis, Iron Mtn & Southern Equipments Seaboard Air Line By Equipments Southern By Equipments Virginia & Southwestern By Equipments Virginian By Equipments .... ..... 4,000,000 12,000,000 2,000,000 450,000 74,000 33,000 30,000 50,000 180,000 225,000 162,000 47,000 365,000 72,000 147,000 2,000,000 100,000 280,000 26,000 145,000 65,000 440,000 25,000 187,000 3 CORPORATION BOND AND NOTE MATURITIES DECEMBER: 1 New York, Ontario & Western Ry 3 1, Notes Atlantic Coast Line ER Equipments Bangor & Aroostook RR Equipments Carolina, Clinchfiell & Ohio Ry Equipments Chesapeake & Ohio Ry Equipments Chicago & Alton RR Equipments Cincinnati, Hamilton & Dayton RR Equipments Erie RR Equipments Ft.Worth & Denver City RR Equipments Kansas City Southern Ry Equipments Minneapolis, St.Paul & Sault Ste Maria Equipments Missouri Pacific Ry Equipments Norfolk & Western Ry Equipments ft . 200,000 125,000 45,000 130,000 215,000 113,000 116,000 450,000 39,000 92,000 51,000 77,000 200,000 44,000 Pere Marquette RR Equipments Pittsburgh, Shawmut & Northern RR Equipments St.Louis & San Francisco RR Equipments St.Louis, Iron Mtn & Southern Ry Equipments 11,000 5,000 67,000 253,000 292,000 185,000 43,000 Seaboard Air Line Ry Equipments Southern Ry Equipments Texas & Pacific Ry Equipments Wabash RR Equipments 1913 JANUARY: 1 1 Richmond & Danville RR Consol. Mtge 6 1. Bonds . New York Central & H R RR Equipments 2 St.Louis . . & San Francisco 6 7, Receivers' ai.fs 4,122,000 2,000,000 3,000,000 702:21 019o. Jea.16,04, 000 CORPORATION BOND AND NOTE MATURITIES 4 INDUSTRIALS 1914 SEPTEMBER: 1 1 1 1 1 2 13 Johnson Company of Pennsylvania 1st Mtge Miami Paper Co. 1st Conv, 6s National Fire Proofing Co. let & Coll.Tr. St.Croix Paper Co. let 38 Studebaker Corporation 5 I Notes 1 100,000 26,000 6s . 361 105,000 400,000 1,000,000 375,000 . Huntington Land & Improvement Co. 6 % Notes American Rolling Mill Co. 6% Notes. . 125,000 4 oli,1,512000 OCTOBER: 1 1 1 1 American Locomotive Co. 5 Notes Canadian-Puget Sound Lumber Co., Ltd., 6 Indian Refining Co. 1st 6s John Scullin Co. (St.Louis) 6 Bonds . % Notes 1,000,000 125,000 200,000 900,000 0. NOVEMBER: 1 1 1 1 1 Bishop-Babcock-Baker Co. Coll.Tr. 6 % Notes 200,000 500,000 Cleveland Cliffs Iron Co. Coll.Tr. 6 % Notes . Federal Sugar Refining Co. 3 Notes Long Bell Lumber Co. 1st & Refunding 6 % Bonds Union Oil Co. of California Coll.Tr. 6 / Bonds Pittsburgh Coal Co. Equipments 2,500,000 . . . 300,000 430,000 . 32,000 00,2, 000 DECEMBER: 1 1 1 1 1 1 1 1 1 1 Agricultural Credit Co. Coll.Tr. 5 % Notes) "B" American Malting Co, lot 6s Concordia Land & Timber Co. lot Mtge 6 Bonds . . Empire Stool & Iron Co. Coll.Tr. 6 % Bonds J.I.Case Threshing Machine Co. 6 % Bonds Glidden Varnish Co. 1st Mtge 6 % Bonds Iroquois Iron Co. let Mtge 3 % Bonds Standard 011 Cloth Co. 6 % Notes United States Envelope Co. 1st Mtge 5 % Bonds. Tennessee Copper Co. let Mtge 6 Bonds . . 1,800,000 2,834,000 25,000 50,000 1,500,000 25,000 128,000 100,000 .50,000 200,000 4,7/,1#000 CORPORATION BOND AND NOTE MATURITIES 5 1915 JANUARY: 1 1 1 Texas Company 1st Mtge 6 Notes, Montreal Tramways and Power Co. 6 % Notes Wm. Cramp & Sons Ship & Engine Building Co. 5 $ 300,000 1,350,000 T. Notes 140,000 CORPORATION BOND AND NOTE MATURITIES PUBLIC 6 UTILITIES 1914 SEPTEMBER: Union Natural Gas Cornoration Coll.Tr. 6,1 1 $ 300,000 46,000 Hudson & Manhattan RR Equipmenta 3)4 oov OCTOBER: 1 1 1 1 1 1 1 I 1 American Gas Co. Coll.Tr. 6s Boston-Virginia Transportation Co. 1st Marine Eq. 6s California-Idaho Co. 1st Coll.Tr. 5s Milwaukee Coke & Gas Co. let 5s Niagara, Loc#port & Ontario Power Co. 6 Notes. . Paterson (N.Z.) Ry Second Gera Mtge 6 Bonds. . . Second Avenue RR (N.Y.) 5 cb Receiver's Ctfs United Water & Light Co. Coll. 6 To Notes West Side RR (Elmira,N.Y.) let Mtge 5 T. Bonds. . . Chesapeake S. S. Co. Equipments Cincinnati Traction Co. Equipments 1,300,000 30,000 400,000 80,000 900,000 300,000 3,140,000 200,000 355,000 30,000 27,0" Hudson & Manhattan RR Equipments Merchants & Miners Transportation Co. Equipments / /Area-J., . 23,000 100,000 too, coo goem000 NOVEMBER: 1 Delaware County Gas Co. lst Mtge 1 Northern Ohio Traction & Light Co. Coll.Tr. 60 5s . . 20 Appalachian Power Co. Cony. 6 /. Notes / 21- 1°, ,,to-.) 200,000 100,000 300,000 too, oo0 4+449.0i00 DECEMBER: 1 Sacramento Valley Irrigation Co. lot Mtge 6 T. Bonds. American Refrigerator Transportation Co. Equipments. Mather Humane Stock Transportation Co. Equipments. . 489,000 81,000 7,000 d4 ?4/ "D dim4T 03.1- cc 90 .9, Ge fit "rj r7q 00 ,ORIV, 62 MEMORANDA for Mr. Strong DEPARTMENT Nov. 10, 1914. Miss Walker asks me to send you bill for getting out the additional copies of the mort,of.'the,sgecial bankers' gpmmi,t09. This work was died in small sections among the stenographers here and was completed on Saturday morning. While the girls hustled pretty lively, practically no extra time outside of regular hours was put in upon it, except by Burrell and myself, who worked until about six o'clock S turday evening, comparing, correcting and assembling the pages. The job, if done by a commercial office, would cost about $40.00, exclusive of stationery. This is simply for information, in c6se you absolutely want it. No one here knows of your inquiry, or expects any remuneratime J.H.L. (6)jatsl,_40ti_pf_t10 cieugant. The issue of paper money, bearing the Jaleation of the Government, must be exaedned in its historleal and economic aapects, ...zed, further, with reeard to the protection of the credit of the Government itself. Discuseine enly the latter features of thie subject, ehat are the possibilitiee under the Owen-Glees bill of difficulty or disaster as contrastedewith the aecepted plan oommon to all the great enrapeaa nations, of a bank note issue under Government reeeeee tian, but without the Government oblieation0 should this oyuntry boom involved in a foreign war, a great economic disturbance, ose what is more possible, should our credit situation be subjected to the deeturbing influenees of a great conflict between foreiem nations, how may the demand obligationa of the Government created by the Owen bill affect the credit at our Government? The bill provides that the notes shall be reftemOble in gold, on amend, at the Treaeury Ievertment of the UnItee Statee, or In gold or lawful money at any Federal reserve bank. The bill permits the Federal *seem bank to authorize member bents to use Federal reserve notes or notee of the National banks as reserves. Under these con, ditions, any great enenamie disturbance in this eountry, or any worldewide disturbance Of credit *doh num resat won this country's credit estateisbilemt, involves a dawn to the credit of the Government, ao long as the Uovernmentfe obligation is attached to the notes0 to the extent, in fact, that a suspension of the reserve requirements of the regional banks as permitted by the bill might involve a suspension of epode payments by the United States Government. e great Airopeanemee, neseesitating huge expenditures, would raise raga of interost in foreign countries that would reset in turn upon our banking (system, requiring the exorcise of every possible measure, first, to retain our store of gold; second., to the intent that it bosoms impaired, to enable the regional books to wee their notes in laeful newt third, to liable the eovernment to ream its lawf4 peeler money- in gold. Will a system of reeional banks, which is the inetrument for issuing untold millions of Govermnent obli time, be able to protect the Government in each sa emergency, and is it nOb the duty of Ooneress to see that any legislation now enacted 'Li afford every nesse whit& can be devised to that end?' A drain upon the gold of the teeetry in euoh anergmey woad be due to the necessary repurchase of foreiem investments, to the interruption of our foreign oommeroe and the disturbance of the balance of inter- national trade, to the floating of foreign loans in this market, to the withdrawal of foreign bank credits now extended to this country, and to the imponitien upon our awn credit establisnmeat of the berdenof financing trade which is nos lareely carried by aesland. sold, in this emereency, would be with:1mm through the presentation of Federal reserve not of the regiong banks, so lone as they were able to furnish gold in payment, when unable to furniah gold, presumably they would exercise their right to eay in lawful money. The demand for gold would thereby be transferred to the Gaited Altos, by the preeontation of the leoveul money. Thie proems might necessitate the suspension of the reserve requirements as to the regional banks throuehont the oountry. The ability of the eovernment to pay eold would be limited to 450,000,000 now held in its trust fund reserve, end its ability to obtain gold from the regional banks. By whet progress night the Governnont redeem its notes in gold if the regional banks had suapended their reserve recogremente and the Government were forged to rely upon its omn ability to pnrehase gold by the use of its own obligatione? The eartets of Europe would be closed. Oar gold supply at home would be subject to inflneneeo largely oorreoponding to those whidh now arise in this country tat ime of panic. We will have possibly 20,000 state inetitutions, eho, influonoed bo the strain and shook to the credits of the country, emote omditions eesoribed and to the ~pension of the reserve requiseients of the aelonal banks, will et once endeavor to atrengthen their gold reserves, and to do so no presenting Federal reserve notes to the regional banks and demanding gold for ehould paoment be Imule in lawful money, the demen4 would be transferred to the Government. se' 1114510 Our cistam for many years will be unable to overcome the influence of the prOOess of beerding on the part of State institutions which are not edbjeot to Federal control or to the influenoe of regional bunks. As oontraeted with this condition, if the notes are the obligatio# Of a central bank, the absolute saspension of reserve requiremonts Gould be made witheut involving the *relit of the United Slates for the esdemption of the notes, sod the last wesort of banking practice could be safely employed before ouspension of payment in gold would be forced upon the eeverneent. The United States is alremq obligated for the redemption on demand in gold of a eUm of paper monev Greater than the entire funded debt of the Uoverunent. Why add to the peel? Why offer gratuitous/y the credit of the United States atm it is not required? Why create a note isame with a redemption fund hardly more than one-half of the amount *doh experience allows to be required in Bumps, aild then attempt to oure its defeats by the endormemeat of the Oeffernment? ..ahef"i 6423,4-Peer eel Ic SITUATIOR Ili THE FEDERAL RESERVE BOARD The preeant membership in the Federal Reserve Board consists of: Governor Harding - Birmingham (Atlanta Federal Reserve District) Mr. Platt - Poughkeepsie (New york Federal Reserve District) Mr. Miller - San Francisco (San Fran. Federal Reserve District) MT. Hamlin - Bost, (Boston Federal Reserve District) Mr. Rich Cleveland (Cleveland Federal Reserve District) And Two ex-officio members, the Secretary of the Treasury, and Comptroller of the Currency. The Secretary of the Treasury retires The Comptroller March 4, of the Currency holds a recess appointment which has never been confirmed by the Senate, and a bill has recently been introduced and is now in committee to abolieh the office of the Comptroller of the Currency and functions of that office to the Federal Reserve Board. transfer the Governor Harding, it is stated, has expressed his willingnecs to accept the presidency of another corporation. Mr. Rich has been apeointed temporarily to fill a vacancy and expects shortly to leave to fulfill his work as Federal Reserve Aeent and Chairman abolieh of the Federal Reserve Bank of Cleveland. the office of the Comptroller of the The legislation to Currency eontemplatee appoint- ing two new members of the Board in place of the Secretary of the Treasury and the Comptroller of the Currency, neither of shorn would, thereafter, be ex-officio members of the Board (thie I regard as a mistake as to the Seoretary of the Treasury). The situation in the Federal Reserve Board is, therefore, as follows: on March There are likely to be three and possibly four vacancies 4. Of the three members remaining, Platt is a new member, appointed during the past year, and, of course, less familiar of the with the Board than others. Appointments to the Federal Reserve Eoard are required to be work 2 Situation in the Federal Reserve Board. repres,,ntative of the various sections of the country, geographically and with due regard to the business and eoonomic interests of the different karts of the country, and no two members may be apkointed from the same Federal Reserve District. Dictated but not Read. ve C6,47 )? SITUATIOB IN TUE TREASURY. Since the ending of the war the organization of the Treaeury has been gradually disbanded, men who were serving from motives of patriotism having resigned to resume their regular occupations. This includes such men as Assistant Secretary Leffingwell, Astistant Secretary Rathbone, Assistant Secretary Davis (now in the Department. of State), all of the members of the -liar Loan Organization and the War Savings Organiza- tion, and others who were there The only two left doing special work. in the Department, who were brought in to assist during the war, are Usistant Secretaries Gilbert and Kelley (salaries $5,000 each) whose promotions to the offices of Assistant Secretaries resulted from the resignation of their superior officers, Mr. Leffingwell and Mr. Hathbone, respectively. These men, I understand, hold recess appointments. In addition, Messrs Broughton and Hand (salaries $8,000 each) who are old Treasury Department employee, are a..so likely to retire, as they, together with Assistant Secretaries Gilbert and Kelley have more lucrative positions offered them in private life. It may be that Messrs Broughton and Hand could be retained if their appointments were confirmed promptly. regarded as These four men are the only four who might be indispenmable, by reason of their knowledge and experience throughout the period of the war. The Treasury Department has always been undermanned, and particularly as to men in more important positions. me, with the expiration of the not only without a head, but present with It will appear to Congress, the Department will be no responsible person there having a 2 Situation in the Treasury. continuous knowledge of the affairs of the Treasury. This is a serious handicap to any new Secretary of the Treasury, and should be considered in connection with the appointment. (Dictated but not read) FEDERAL RESERVE BOARD Confidential,: It seams desirable to elaborate an earlier memorandum on the subject of the Federal Reserve Board. The preeent membership of the board Consists of; *HONORABLE DAVID F. HOUS1ON, Secretary of the Treasury, March 4, 1921 Retires *HONORABLE JOHN SKELTON WILLIAMS, Comptroller of the March 4, 1921 Currency; Retires contemplated that the office of or earlier. It the Comptroller of the Currency may be abolished is under legielation now pending. HONORABLE h. P. G. HARDING, Governor, Birmingham (Atlanta Federal Reserve District), Democrat. Term expires August 10, 1922 Governor Harding now has under consideration an important position with a new corporation just organized. HONORABLE EDMUND PLAIT, Poughkeepsie (New York Federal Reserve District), Republican. October 26, 1928 Term expires Mr. Platt recently was a member of the Rou,_e of Repreeentatives and served on the Committee on Banking and Currency, his membership on the Federal Reserve Board dating only from May 28, 1920. HONORABLE CHARLES S. HAMLIN, boeton (Boston Federal Reserve District), Democrat. ettlblithiLeitt" 10, 1926 &rWRrteBad HONORA tSan Francisco, (San Francisco Federal Reserve District), Democrat. Term expires AUgust 10, 1924 He been a member of the Federal Reserve boird since its establishment. HONORABLE D. C. WILLS, Cleveland (Cleveland Federal Rea serve District), Republican. Term expires Interim Appointment Mr. Wills was appointed temporarily to fill a maeanoy in the Board and expects shortly to resume his office of Federal Reserve Agent and Chairman of the Board of Directore of the Federal Reserve Bank of Cleveland. * These two are ex-officio membere of the board. It will be observed that at an eariy date there will be three and possibly four vacanoiee in the Federal Reserve Board. These vacancies must be filled by a Federal Reserve Board presioent just (0 taking office, who will not have the benefit of the advioe of a secretary of the treasury who has been conversant Treasury Dopartment and the Federal Reserve Board. with the policieo and ailfairs of the Section 10 of the Federal Reserve Act contains the following provisions respecting the aepointment and qualifications of the members of the Federal Reserve Board: "A Federal Reeerve Board is hereby created which shall conthe Secretary of the Treasury and the Comptroller of the Currency, who shall be members ex officio, and five memb,ra appointed by the President of the United States, by and with the advice and consent of the Senate. In selectine the five appointive members of the Federal Reserve Boara, not more than one of whom shall be selected from any one Federal reserve diLtrict, the President shall heve due raacI to 4 fair representation of the different commercial, industrial and geographical divisions of the country. bers of the Federal Reserve Board aepointed by the President and confirmed as aforesaid shall devote their entire time to the business of the Federal Reserve Board anc shall each receive an annual salary or 12,000 payable monthly together with actual neceeeary traveiine expenses, and the Comptroller of the Currency, as ex officio member of the Federal Reserve boere, shall, in Weldon to the salary now raid him as Comptroller of the Currency, receive We sum annually for his servicee as a member of said boaro. "The Secretary or the Treasury and the Comptroller of the Currency shall be ineligible durine the time they are in office and for two }Jean.; thereafter to hold any office, position, or ameloyment The apeointive members of the Federal Reserve in any member bank. Board shall be ineligible, during the time they are in office and for two years thereafter to hold any office, position, or emeloymunt in any member bank, except that this restriction shall not seely to a member who has served the full term for which he vies aekointed. Of the 'five members the appointed by the President at least two shall be persons experienced .in tanking or. finance. One shall be deeieneted by the President to serve for two, one for four, one for six, one for eieht, and one for ten years, and thereafter each member so appointed shall serve for a term of ten years unless sooner removeu for cause by the President. Of the five persons thus appointed, one shall be designated by the President as eovernor and one as vice overnor of the Federal Reserve hoard. The governor of the Federal Reserve Board, subject to its supervision, shall be the active executive officer. The Secretary of the Treasury may assign offices in the peeartment of the Treasury for the use of the Federal Reserve board. &ach wester of the sist of seven members, including of 0,000 Federal Reserve board shall within fifteen days after notice of appointwent make and subscribe to the oath of office. * ** "The Secretary of the Treeeury shall be ex officio chairman of the Federal Reserve Board. No member of the Federal Reserve board shall be an officer or director of any Lank, bankine institution, truet company, or Federal reserve bank nor hold stock in any bank, Lankire inAitution, or trust comeany; and before enterine upon his duties as a member Federal Reserve Board (i) of the Federal Reserve Board he shall Secreteryebf the Treeeury that he has certify under oath to the complied with this requirement. Whenever 'a vacancy shall occur, other than by expiration of term, among/the five members of the Federal Reserve board appointed by the President, as above provided, a successor shall be appointed by the President, with the advice and consent of the Senate, to fill such Vacancy, and when appointed he shall bold office for the unexpired term of the member whose place he is "The President shall have poeer to my happen on the Federal Reserve board during the recess of the Senate, by granting commiezions which ehall expire thirty days after the next session of the Senate convenes." selected to fill. fill ail vacancies that The important considerations affecting appointmehte to fill vacancies in the Federal Reserve Board should be the following: That the eppointees should be men of mature banking experience Judgment, with knowledge of finance and economics, and in a 5. and broader bens. than is general among our bankers. That the appointees should be so 're of political activities as to insure the continuance of the present policy contemplated by the Federal Reeerve keet.that the Board should be strictly nonepolitice4. That the appointees should be representative of the whole country, both geographically and economically. As the President-Elect will have no opportunity to confer with a secretary of the treasury who is familiar with the traditions of the Beard and the experience of the war period, it seems most important that those who are familiar with these matters be at least given opportunity to express their Oews, and more especially Governor Harding. His record has been so sound and courageous during his term of office as governor, which is doubtless as difficult a period as the reserve system is likely to meet for a long time, it is important that he should not only the Board, but the Governor of the Board. remain a member of Ho has an important position under con- sideration, but has not accepted it, and, I believe, would not accept it could he be assured of continuing his precent work for the balance of his term as a member of the Board. Inquiry just made discloses the same character of independence oi in political matters that he hae shown in financial matters. thought Notwithstanding the Federal Reserve Board (4) fact that he was born and spent his life in the South, and might be classed as a Democrat, he voted for McKinley in 1898 and 1900, for Palmer in 1904, in 1906 he was unable to vote, he voted for Olson in 1912 and did not vote in 1916 ,)r 1920. As Governor Harding will, in any event, remain a member of the Board, and Governor, for some months after March 4, he will be in position to advise in these important matters in case his advice is desired. BS. ED (2.8.21) 0 4.&i (.71_ 041,44_ Cice-1, t C. I "7 1, v- r - %).12.-17--,a 413 LAP" 1 0;1:0 a r.evt fittintl t 11rote in reeeruition Ame:eica is to 4,1 1 I. ,1 ther- ',1q,.-;;',41) tAZis f7.,,r, i1a1 hfwe conforzed, the highezt honvr Tran-, Lelgium ana tcv-tIrioalr.1 of the people of hie OW3 CountrzFt -:4mbelir1rz their admiration 'anti etIteon. iz to --non taitatinpul,5heA cortt ana Art-..crials i.oh iz nertC;:t.ptain tal::e an .orOzrinr, tnd. vont zuavioio3la f:exi be moot rratc:fully tonroeiatea by hi, s encr toP'-t'1"1."1 ", PF%-ti l'art%.osi-fl il, Linclberchls koart axi A it) 14' S+ e .1. 4,t wad ns a memorial to hint the Iiborh Aviation Tollaation for tto promotlea aad aevnlopNent of the solenee or aviation. Lth erh noeosflaZy to create tho The funa vintien ?ctIndfit.lon pol7a15),r ciabzorition thrmhont the Vnited r,Stnter.0 rill be r2icet1 by Cain Lialdbh .111 he trJnfjerea to ponition of General Diroetw of the Fclxnat.len. It is Captain, 'IMnYld tk) have :2:r-eli1er,t Coon,forEn11:7 LI:,laborhs. 117:to-ahl2 retr4rns of the eptabliment of the Lind.bolk Avition Fcanatioll ae the szentane=7 roaonition by the :people of the l'Atited,ten of his vl.!exvolous1 aac=plizkintl, I f:31,7 Cf... 0 1, ',Li, c.et.i.v," or t7Ae Irhe- L# Lianor4,11 Aviaticn cu L1 be It1C i,r;ZiOOQe, nyaelqi eu;a buy. 7,31:1.n.c t'Aat it C.1. E=;;;.41 Idoaa ana Cevtain aof th.o fakItureil in ,,2)007-dawo d OT:31,,mesf, '211-0 plaqe IcA113 5t. 7,-oin Char:ler of ad O. vLo at, 4-1., . t.,14 "'" = s 11.-,-, +7, Lau1:1 13. , f)- 0 many ethez frienasc Captnin T,Inabergh, llon. Dwight il, Daylx, CiLt.:::;e, oC tl:la cntire eepatary of -Z4-.tr ltas 0011,0Cie,d;Wlto tilke ry;ttQr0 solootion Z te ecrotary Thr fo7' this -11-,:r1.:cf..7ie i3 efi?e,31%l2y anil.roDriatc- in Vic; 0:r to Of.fieer in the. Vaii.x.,d1 tat A7;117 factROrVe arid a 111.f.if3OUri :ZedOrtfa. it, b7 the 3ecretary oT GOrtYlittiV, t121 be 1,:ar , to c,,oncrate t"cs p S., jcct caotaile to the, OlVatlift 1011 of the 2-i1neibc1T,-h .wlation rowT3,at1ona. It Lo 1,11-e1y that the l'aztevlr.tioa will be- 5:f1C.)017.102T-7,11-ett bjCrteel,A1 Mt of Conzroal:i,ns 217,-on aa it convonoau Az the Lind.berfil Aviation .Vaunatitinn: will reTrwont a testi., ii1t States tionIQ.to Ga.7-itain lArtabore.11 by al tho pepit o ti - oontrPluticra of ur.al frlotintz from agrcat nmlber of mn, vonen ana ol-,i1fIren aro aclAred rather tIL7-..'o, 1:1:000 al.a=nts- 171.,o1,.-1 a tow, Captaka .1..,111(Iber4,71-1 !la:3 rfYfaisoll, my-zit t,,,:saLrtiri.I of-.SVra, to go into, the FlaViC2 or Ca the tatc,77-;f:10 azya hi,r3 1.-.".r.I13.15.,;:if.,17.-mz3,-to hic inte112,r.4 irltOreZt commerc1al:1,2:e hin In ai2 titui,1 Ltn CATN:010142;tt, It life, cl'Iginny to IltLvo to iit o -it5 rtts, wIth a vf ar ti-zt ' nc7:, br.inefit or 7=ri*-A.c.c:, ktilaA in6un,:t fro infeled the tl; 1:1v.'o the. if*cmc frc,n the b4-,nZ!r1. ; hisr cnitato -tn,1 'ZI:1./111 .1-1 tLicabled rtca,.-La a .z!:,4zilt3 az. vi:.q.1 as .g.oe to 0.71- 4,1 coanilat of. fa-4,;;Deptl orv1. outri:ago Etri,t1 nc -1,rizes to provoto the devolont an a,vaneenDrit of tloronautis. .:Tanee aIT'eaelyhrla a Glrdlar ft.tisai. in the Calane do .;ooeuro 1..q.c1 to that oratlitin that -Claptain Linlborgh [3:1,ve tne 15-0,900 tx,o dontoa to tan in alanee for a ou? in commonoration of his groat aahlavement dlioToxing ththe do A$ronautic.:ue. vantea tho money.u.-.15ed, for tho bgaoVt cf t:re faTillis of Freneh aviator o who ahave laUt '1o7.-21 their 1:7.vo3 fw, the progreau of avilatiorV. It in (leoted tbat a very tT;:tenntirl ano-=nt vi-171 bo ralsea ia in ne sem* to ba rithout any erearazea effort.. rt ittyz.3c.-;.53 caly ,n,:!oefz=ry to v.rratra faeilltion to V f)mble the A.,,:leriean rif)opIo to erecla their deop wapreeistiou oZ Captala Maaberel,aIrith1c ocuyao z="Jlolvonlortal aohlovent, on t,f,-,.b1.4. r3!-'1,1 RI' if3 P7,77,..7.1anent, rt3ertOri al to Iliac fz,--aCt onliot the cooDa.ration of,tha Cavernevs IZtvova4 Otha dift'oriat state-zi. z14a lar,sov jthi rze- fr.,w Yor:i.** o4orner of tho feaoral ronrvo ,conw7,,?1Sed to cot au uo;,.leral Trarsnrer of t!11;. ,. fond.o. o-PfeetrA an rt..can crY1 ana kee.ning recor-1 efa71.1 :ffubzI]-17:)tiem..3. ore_tayn.:; bla r.. y.a'!::.7-10 to '''Linntavo 7-z.;.'antionn an), t=t diret-"- to :Eon.. Oavernor Yor:L7 ;',nauT:gf.a mar t720, thl)IIC f;ov.c.riLt'...;tv-on,7.7. or to lcaal t-a ..,A7='2 trio t!amto zrri jhn C p0crait Almoanoer,ent vill 'aa.maae at onoe reupeating arranetmentz .3(71rW7atnd with t.11.666.vrnol'n of othtvkorailieeorvo Dari154 givinp the inamouof thoz who will. flot as Woasurol'a in the wArious oit1o3 au regara5 viulous otlaak" vauro a 7i?caervo Ban? 13 loW2,dz aotc,,,11 now being co:nsummatorl. etttE2,-, 2 (111 _ / r C-t: 1 - /4..12 - it tj _ L f (.7 uti_ . / U1? ," ,r) -101_,C7,4 1,-,), CZ-z, a77..1 / 3.