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Denver, Colorado, January 3, 1917. pa VATE. Dear /udge: ve a word with you I asked Hendricks in a recent letter to adopted of sending about the practice which he advised me had be copies of the weekly reports which sent to to the Reserve Board and have heard nothing about it since writing. struck me as an s recent actiO unusual proceeding and since to feel that I would rather am inclined reports in that form than to quently, less frank and complete have them subject to revie than they might otherwise be. At no tine ve I felt the slightest g the pa nee from the complete of the Reserve members confi desire to withho Board, even in before the witho reservation some *er and I am v con The whole subject was laid s Bank of Engl .uing to send th ut it seems that this course involves o ask your opinion as to the wisdom of e week/7 statements. Very sincerely yours, J. F. Curt Federal 'Reserve Board, Now York City. BS/CC Denver, Colorado, January 3, 1917. Dear Judge: of mail and have I am struggling with a great accumulati at the top of the reached yours of the 22nd, Which in fact was pile. Those Christmas knick-knacks were really bul none of the books and dill in t sad them all I have read th great en- joyment, particularly the What can I say to you ve been heartsick over the whole recent Washington dev exchequer bills and now thing - first t about the Bank this announceme fro Can it be a fact that this egotistically, but only as ap- muse? kindergarten first bills in affairs of Importance, and I am plie not England. rs, are the only ones that have you and I, with any co essay to Treman IL, regard to acessarily refe he start. so len and just the hear ng to peace negotiations Which have been bungled r, I wish some of these fellows in ,,ashington, ot be "translated" could oe transported to Europe the sounds and smell the smells of battle from a distpnee of a few hundred miles - it would do them good. After mature deliberation, I have decided to let the Bank of England episode take its official course and I am writing nothing on the subject to the members of the Board at .ashington, at any rate until they write me. If I did write them officially, it would be to advise 2. - Llr. Curtis. January 3, 1917. them that I am sending in my resignation, Which I am selfish enough not to do, at any rate until the finishing touches are put on these foreign arrangements. So much for now. concerning which had wonderful exooriences in the mountains, I will try and write you later Very since reli,720)1 Curtis, Esq., Federal Reserve Banx, New York: City. Bs/cc e rte - Denver, Colorado, January 9, 1917. Dear Judge: That mistake about your mansion was not my fault, but was Laura were going to live sensibly herea ur good wife you an the result of an old understanding I had r an uisance avoid th Thanks and care of a house, but I guess you ar too old fashion * for the details. I cannot really ou much sympa od health and ankle; you have been braggin,. the misfortunes of your assb,iates and this the way the Lord visits ly about it had I not I woul his anger upon you. bout that ur accident and telling received a letter f me you would be around Between your lott the bank, including a I get a very good pict s and one or two from others at s rather insulting communication, s going on. It does not promote ap- or peaee of mind and then I was disturbed by Treman's petite, resolved to ask permission from the Reserve statement tha Board to negot for nearly a ye Procedure is to e with the Bank of France, after we had been negotiating The Board's function is to apperve or disapprove; our gotiate subject to approval or disapproval, and it is 41. a bad procedure to ta_:e official action in that way, although perfectly proper to consult informally, Which I would suggest being done instead of taking personal action. Treman sent me a copy of the cable to Cunli1fe. Confidentially, I have just spent two days in a very careful study of a letter to the Bank of England, which has been dispatched to Now York 2. January 9, 1917. er. cartis. and thich, very confidentially, 1 have gone over on technical points with George Roberts, who is here and of course is familiar with these questions of gold values; he was very helpful. Nevertheless, the matter is of such great importkInne that it ought to New York by competent people. ,fully chocked in It is the t I can do advantage of the of the "advice of the t here without ly gilidems. Sorr you are having trouble abou your Secretary on't lot those women boss you. The arrangement abou lanes, pa me very much - more than y ficiary. this difficult and bustli that you abandoned old ings, then we need nal . J. needs a too cold, down U that jitime he says, I do just that yours, pleases thou_i you are the bene- It jves no the comfort, protection a u1ar1 tell you that a tremonduous ren. it has to have you along side through od of development, if you are not sorry bad company and disputatious surrow.d= gret it I hope. change and his doctor thinks Denver is et him at Hot Springs, Ark. or any old place try Where it is warm and balmy for a little visit any it will do us both good. Dr. Sewall recommends that ng if I can get someone to join me for company, and the . same remark applies to you if he cannot get away and applies still stronger to both of you, if you can both get a;my. To me all indications of peace negotiations and collateral news indicate that Gerilany is up against it and putting up a big bluff. If peace does not result, we may see a new period of frightfulness on the To January 9, 1917. Mr. Curtis. ooaan, possibly also on land, and then official Germany bowin- as gracefully as possible to their awn people when they really sue for peace, statihg that U.S.A. they cannot afford to fight the world, including I am beginning to think the peace move was intimation that Washington was finally go inspired by some sonally, I o act. s: tially the right time, but bungled in the handling.rid yet that the s still the think the President's move was at possibility of the r t time, or sub. eace resulting; in this I know you wont fail to get out here if possi more, with you am.' Jay and I woul man, and get t been going on and see if we ould not smooth Give m;,,, love that Z20.00 unless I happ ke real tell her ay else money that she knom of, 0 be trifling. Affectionately yours, Federal Reserve\ New York City. BS/CC story of what's ngs out a bit. ith warmest re J. F. Curtis, Don't e one day, if no in which case to pay my d I hope your ace Lee. Denver, Colorado, Januar 10, 1917. Dear Judge: 1 have read the Minutes of the 9th Conference wit', much in- terest and return the copy herein. On the . .ressea me as being a progressive meeting, with more accomp d than the one before, but I still thinic I contains the possibility of trouble. omit that ref nce WhiCh J. F. Curtis, Esq., Federal Reserve B New Yor,c City, N. Y. inc. Denver, Colorado, January 10, 1917. My dear Ur. Curtis: Yours of the 5th, enclosing copy of th Conference of Governors, is just recei full report, but as to tonic 4c, the I have n. t read the ference apparen y tooK no action upon that subject and it appear to be a report the Secretary as to what he had d tion to pre s actions taken. In my opinion, no 'ad b including it in the report. Thank you for eadin read. J. Federa tis, Esq., New York serve Bank, eh I will return When Denver, Colorado, January 11, 1917. PalS,ZAL. Dear Judge: It was nice to get your bully letter of the 8th and Miss tatus with as to yo Carlton promises to permit no more confus 4 the It was oossibly due to the Board. t that with .' .-rnors and doctors over there in profusion, it seer d necessary to I fish them also with a judge. Thank you for the advi not go to Washington. I' Also lanations confirming for various othe views that I already held, 1,,bered from var let sent a rather tp Treman England, which I am sorry itten, :ign the infl once of a pers ter which signing a s sources. I have essed to the 3ank of n the bank's letterhead. Possibly the first page Treman may prefer t' which should por :bout thos it. or, if it is all re-written, e only point In my signing it was on and a little ridiculous pride in may give effect to a hnnking alliance of his- torical import Don't wo at the bank, and about my resignation - I have got one on file already guess as long as the bank is in the vocative, wont do any more about it 4 guess juet now is that the Ille,f . leaA investigation will be permitted ie, i it is not killed by congressional assassination, but I would like j. to see the thing cleared up. I have sent Hr. Treman some comments on all the amendments which came to me, in rather unfinished shape, and 1 am just sending him copy of P. To - Mr. Curtis. January 11, 1917. another letter recent347 written to Warburg on this subject. matters that really require discussion to in capped bring out views, These are and I am handi- expressing any opinion here. A word about that article you enclose. You know I have alwggs definitely and with great determination s face at entertaining any ideas such as suggested in the latt Dart of this a cle. be most reluctant to Change my views, b if there is any round for do- ing so, I would like to know it. I I have not read the "P engaged Nitil What do you think eat Mr. HUrst's be 1. you I will lf? , just now being my of War", afterwards expecting to tackle those Please give yourself. I hope your rds and the save to promptly. ully yours, J. F. C tie, Esq.,. Fedora serve Bank,. New York BS/CO Denver, Colorado, January 19, 1917. Dear Judge: Thanks for yours of the 13th. i am reliev o make formal ap- tion you mention, for it would have been a mist plicatian as I have written Jr. about the applica- Tre There are two sets of French set in a money: one the asking that it be put in scrap book Which I sent you fro small paper he other is a the tin box or some other sa box filled with little envelopes, one containing a few specimens. I hooe that they have They are rare and will be very difficult to g bill sealls to be Your guess ab u awe me it would be a good plan to do the with what Laura had left aver. same th Irr was a stupid b my Mrs. ke for me, so you might hand her UCLaren has various the cash correct. for me to mention Hot Springs, Ark. in letk I :::: Cas,1! Hot Springs, Ariz. When it rea This letter will be stale t the situation today is as follows: I decided to suggest Chandler, Ariz. instead of Castle Hot Springs, not only because the hotel is good, but it is in a most interesting country vhere they have those petrified forests and other wonders. gram I called the hotel by tmpossible to get rooms. On receiving your tele- telephone and after some argument, found it I also ascertained that everything on the Santa Fe road down to that country is booked except on the 27th of this moth, To - Ur. Curtis. January 19, 1917. so I switchbd back to Castle Hot Springs, as I telegraphed you yesterday, and I am now awaiting a telegram from there as to whether they can give us accommodations. Springs, as the Antlers If not, I am proposi there is a splendid hote Robert Masson, whom you met through , to suggest Colorado nd besides that Casenave, wil be there and I know you will enjoy seeing something of him. 464 at definite word to you before long. You can imagine 1337 delight at th visit with you and Green. J. F. Curtis, Ssq., Federal Reserve New Yoric City. BS/CC Bank, ospect of a cal 11111 WESTEL'71AEM UNION WESTERN UNION f. E. ATKINS, VICE-PRESIDENT S No. TEL AM NEWCOMB CARLTON, PRESIDENT TIME FILED he following Telegram, subject to the terms tck hereof, which are hereby agreed to J. iff A. BELVIDERE BROOKS, VICE-PRESIDENT CHECK .11ver, Colorado, January 19, 1917, Curtin, Fedora' 1:ee.vve aUit., New Yr-. City. ,riglIsh letter mallod last niLAt. Approve your mailing addition socotestod /)! oodward vihan it arrtVoe Benjamin stront;. Benj. Strong, 41,10 Uontvisw Blvd. Donvor Form 260 WIEW ALL TELEGRAMS TAKEN BY THIS COMPANY ARE SUBJECT TO THE FOLLOWING T1 To guard against mistakes or delays, the sender of a telegram should order it REPEATED, that is, telegraphed back to the originating office For this, one-half the unrepeated telegram rate is charged in addition. Unless otherwise indicated on its face, THIS IS AN UNREPEATED TEL l'AlD FOR AS SUCH, in consideration whereof it is agreed between the sender of the telegram and this Company as follows: The Company shall not be liable for mistakes or delays in the transmission or delivery, or for non-delivery, of any UNREPEATED telegrt r amount received for sending the same; nor for mistakes or delays in the transmission or delivery, or for non-delivety, of anyREPEATED telegram, bey' the sum received for sending the same, unless specially valued; nor in any case for delays arising from unavoidable interruption in the working of its errors in cipher or obscure telegrams. In any event the Company shall not be liable for damages for any mistakes or delays in the transmission or delivery, or for the non-deliver gram, whether caused by the negligence of its servants or otherwise, beyond the sum of FIFTY DOLLARS, at which amount this tel.er- . is hereby a greater value is stated in writing hereon at the time the telegram is offered to the Company for transmission, and an additional sum pa- or agreed to on such value equal to one-tenth of one per cent. thereof. The Company is hereby made the agent of the sender, without liability, to forward this telegram over the lines of any other Company who reach its destination. Telegrams will be delivered free within one-half mile of the Company's office in towns of 5,000 population or less, and within one mile of suel cities or towns. Beyond these limits the Company does not undertake to make delivery, but will, without liability, at the sender's request, as his ag expense, endeavor to contract for him for such delivery at a reasonable price. No responsibility attaches to this Company concerning telegrams until the same are accepted at one of its transmitting offices; and if a tele such office by one of the Company's messengers, he acts for that purpose as the agent of the sender. The Company will not be liable for damages or statutory penalties in any case where the claim is not presented in writing within sixty day gram is filed with the Company for transmission. No employee of the Company is authorized to vary the foregoing. THE WESTERN UNION TELEGRAPH INCORPORATED NEWCOMB CARLTON, PRESIDENT CLASSES OF SERVICE TELEGRAMS A full-rate expedited service. NIGHT TELEGRAMS Accepted up to 2.00 A.M. at reduced rates to be sent during the night and delivered not earlier than the morning of the next ensuing business day. DAY LETTERS A deferred day service at rates lower than the standard telegram rates as follows: One and one-half times the standard night letter rate for the transmission of 50 words or less and one-fifth of the initial rate for each additional 10 words or less. Subordinate to the priority of transmission and delivery of regular telegrams. Must be written in plain English. Code language not permissible. Telephonic delivery permissible. Day Letters receiv express understanding that the Company only undertal the same on the day of their date subject to condition time remains for such transmission and delivery during hours, subject ' to priority of the transmission of regu NIGHT LETTERS Accepted up to midnight for delivery on the morni ensuing business day, at rates still lower than standard 3 rates, as follows: The standard day rate for 10 words sl for the transmission of 50 words or less, and one-fifth of day rate for 10 words shall be charged for each additior less. Must be written in plain English. Code lang missible. Mail delivery, postage prepaid, permissibl Denver, Colorado, February 15, 1917. Dear Judge: Your visit was a perfect delight and I cannot tell you how much o unburden myself of real good it did me to have ten dais with y ight months all the accumulations of the last six o the telescope You now have taken a peep thro distance from affairs, realize that ii ome ways one's nd I hope rate more comprehensive from a can stir up our the bill at the hotel Ari ending one more day than you was $111.70, so maki about ,54.45. did, I figured that you I feel as though I owed your trip out did me a world of good. you a great deal more, oon and reached Denver yesterday after- I got accommodations trip, paid up all the bills in Phoenix, ter a very co eturned his books, said goodbye to him for you, called on - sten is at any So much f The bill at t noon at this ree ar not in good shape partners on some matters at the office. uses forwardinc; your mail and left a card at the Arizona left directi for Club, so i ho all the chores were cleaned up. Give as d an account of me as your conscience will permit to the boys at the office, and again many thanks to you for devoting good vacation days to visiting the invalid. Faithfully yours, James F. Curtis, Esq., Federal Reaerve Bank, New York City. BS/CC Denver, Colorado, February 15, 1917. Dear Judge: I am sending a remittance of today. This is in payment James V. Curtis, Esq., Federal Reserve Bank, New York City. CC. Denver, Colorado, February 23, 1917. Dear Judge: am returning with this Mr. A. Maurice L Which I have read with a Blockade and Contraband, Possibly I am justified in using a phrase which I your lips - to the effect that it conta than omitting myself. for some strange reastoes not ouch In connect It reminds f on various subjects that I did not know enough about to just You pro assertive bit amaturieh. it 18 me of some of the staff I have come across a glad to add it to a illection ea nX I have heard from In part, it convincing and certa If you happen deal of interest. s n tngn. To tell you the truth, it did not impress me very s rather s article on of doc sed tend me some with the wo the subject of e Furthermore, the mails. opy of this, I would be nts I have on this subject. oriel on the subject of the Budget. owe are doing in that matter, have come aor s an Pmglish bo written by E. Hilton Yoang, M.P., 1915, en tied "The Syste you published in f National Finance". been led suggestions, te him a long letter, containing a few modest oaring up the constitution, and a few other things liKe that, and have an extra copy until for you to read , but don't dare send it after I have first read your production. I am getting along first rate, have caught up with my mail and am looking forward today to Masson's arrival. He is going to spend the night with me and start east tomorrow. ?lease give my love to Laura and tell her that I will be writing 4. February 23, 1917. To - Mr. Curtis. her in a few days in answer to her last letter, which 1 avreciated very much. Best regards old man, from Yours faithfully, J. F. Curtis, Esq., Federal Reserve Bank, New York City. BS/CC me' Denver, Colorado, February 26, 1917. Dear Mr. Curtis: Yours of the 23rd, containing copies of telegrams exchanged with Monsieur Pallain, has Oust reached me and it was now in the best possible shape. forget in Do matter that we have not referred to po Possibly in view of ing to post pone the matte return of the revised mem eriment with tie Federal Reserve Esq., F. Curtis, Federal Reserve B New York City. BS/CC Board may be will- velopments or a While. will y and not delay the ndum for Pa/lai- Yours very J. sidering this ible LIoratoria. This is not a very good tine to e Exchange. s though this matter cerely, Denver, Colorado, February 26, 1917. Dear Judge: to the Federal Re- I am returning the draft of a proposed will explain made one or two pencil suggestions Wh Paragraph (a). It will be a poor cement, and have England serve Board on the subject of the Bank an to permit s letter to they e cable to Wh give the impression that the object was confidence really ef- inspired, if you please, b think you are fully justi- fected me personally as esponsibility for fied in sending a letter that in- quiry made through On page 3, last pa I think it to that Ur. Lorgaa the phraseology so as any censorious rt had that o the Bank of stet but that what may be just as Iv is enough an onism in the air already and we to appear to eve this difficulty On Harding's letter, that a crossed a was responsible for Lngland through his ressions contained in the cable might have arance were really inspired by Your let well to alter letter of copy of which he to Mr. mine to telephone request. must be very There careful not Liorgan's shoulders. Mr. Treman, commenting on sent me, and I cannot help but feel good deal of the difficulty respecting this cable correspondence was really due to lack of consideration at the bank of my own vieee, sent by telegram from Phoenix, in which I stated that these cables were personal matters, over Which, *s a matter of fact, the Committee of our Board had no control. ex, 2. To - Mr. Curtis. February 26, 1917. On the whole, I think your letter is just, but just about as harsh as the letter from the Reserve Board. Personally, 1 do not care haw harsh a letter is sent so long as it is framed bring down the swath of the Board on uneffendi in such a way so as not to officers of the bank, when really the whole resnonsibility f to end rests upon me and, frankly, I ons from beginning ve no desire to hirk or avoid it. If the Board wants to fight ectly willing to do so and tell them frankly their performances. But, personally, I do not be censured for sometbin As to the principle our directors should ctly my own affair. made clear, I am in hearty agreement, merely yours, J. F. Curtis, Esq., Federal Reserve Ba New rk City. BS/CC Since '. S. ctating the above the local newspapers contain rather ominous news ut the war situation and state that the President is to address Congr s this afternoon. I don't want to advocate a policy that will simply stir up trouble in the System when heavy responsibilities must be carried by the Board and by ourselves, and it may be prudent simply to address a letter to the Board stating that there were certain errors in Treman's letter which as a matter of record, now that the Board has made a written record of the subject, which must be corrected, but in Consideration of the disturbed conditions it has been decided to postpone any further correspondence until the situation is clearer, meantime makin_ clear that the officers or the directors of the bank insist upon clearing the record in view of Governor Harding's letter. It is hard for me to judge of these matters from here because the days are Italeidoscopic and beyond everything Prudence and conservatism should characterize our attitude. Denver, Colorado, February 26, 1917. Dear Judge: Thanks for yours of the 21st about the directors' records. Let me explain thy I made the suggestio : The records of a bank are like The books of original bones when the entry construction are repre ted by the tip fan is spread out .and those records through the various books ' where all transactions a lady's fan. -ntry, reported and th authorized, viz.- the Mi, ie book and the f each of the d all lead ral authority e all transactions are ord of the reports to the f the fan. Few men in con- directors; that, sidering the organizati ake the trouble to get the real per- spective as to these r you know my anxiety shall be a model of n that regard, hence these fatherly re- Yours very 4 J. F. Curtis Rose New York Cit Federal Bank, sincerely, that our little bank Denver, Colorado, February 26, 1917. Dear Judge: Thanks for yours of the 20th. The cap has been sent but so far the only footwear Which has turned up i ()eke, one of which ing stock tee whether there was torn beyond repair, and we are no is anything more such as golf stook'--, etc. t we did not I have heard from Jerome Greene and I am amazed get his wire. Don't worry about b that bank, and almost th bank. ay part of the Senior Mee trouble, j5 r e leek The trouble with of capacity on the r own work effectively, and o organize this is very largely ngness, or inability, to learn how to delegate less matters to subordinates and to have this act of delegation a so that the machinery of the bank, eir regular routine, will take care of without detaching pe done by the officers; it is a matter of a training. obstacle in unhesitating ter than some swer the Question as to at is the greatest e way of a man's developing into a real executive, I would answer - ''His own conviction that he can do things bet- her fellow". I am glad to learn of Jay's success in ';iashington. I rather wish that Treman had undertaken the job so that there might be no aopearance of timidity on his part in meeting. the Board. About Governors' Conferences, if Harding discourages them I nevertheless think they should be held but, if possible, without ignoring the Reserve Board. 2. February 26, 1917. To - Mr. Curtis. I am writing separately, commenting on your "condone letter". Backus' death was a great shock to me. He and I have been e have since I was a boy of ten or twelve. always friends fought more or less but still have remained friends. I like these hand-written letters o freedom of restraint imposed by $the c exhibit the ordhip of a s ographer and typewriter, so lets have some more o With every good wish and love to Laura, J. P. Curtis, Esq. 57 East 52nd St., New York City. ?. S. Again referri of a letter from th or on another Go the ish. ?here is situation I do news. I have just received copy ssed to Treman by Harding, throwing cold lug on the ground that the times are iii the suggestion. If we are going to have hk a meeting should be held, thus taking all ors away from the banks. Denver, Colorado, March 2, 1917. Dear 2r. Curtis: Yours of the 24th ult., containing suggestions for revision of d I have been spend- the Bank of France memorandum, reached me 7 as well as lug some time in studyin_ over the letter addressed to Pallain, concerni (1) Now as to the memorandum, thich 'you have s I hink all the raph 8 are good and much to the point add a clause following the ount of oblige es proposed ems to me we should on payable in gold y one institution In ated in paragraph 16 at any one ti be limited as difficult to make clear and I The reason for the addit ransaction: will illustrate it by a 41.00. we can buy 5-francs 85 At today's rates of exchange If we invest in francs at that of France, there is nothing to prevent deposit them rdering-the Bank of France to ear-mark gold for the amount of our at these francs, cost of moving we were ested no changes. substantially as follows: "And in general th Which may be incur favor of the 'ther below". rate lishing up the able to gold, it would to ship the gold to e gold were normal instead of gland. .Assuming abnormal as at that the present, and y these francs dawn in New York in the form of imported y take 5 francs and 18 centimes of this gold to repay us the original cost of 41.00, Which purchased 5 francs and 85 centimes, so that our profit would be the difference between 5.85 and 5.18, Which is, of course the amount of present depreciation in French exchange. This kept 2. To - Mr. Curtis. March 2, 1917. up indefinitely would either restore French exchange to normal, or pump the Bank of France out of These figures are rought and I am only gold. stating the thing theoretically to illustrate what should be guarded against. Practically, the transaction would not be possible, because we could not It is, of cour physically move the gold. happening that the Government has prohl countries would be buying francs at a just such things ed gold expor count and takin bank of France, probably storing it in some neutral c" The addition of the proposed while we will conatrue the ld out of the like Switzerland. nk of France ,,-e Ind that eament as imp.- ng an obligation upon them to liouidate everything owe.. to us in gold which may be incurr otherwise neutral et the amount of the debt ubject to t,- r own control, as provided by clause 16. (2) Please refer tter of February 11th, addressed to Mr. Treman from Phoenix, oints requiring soecial investigation, let ed. some of which are stil Mr. Cann has just written ma of his acceptance of an offer 4 y regret. from Canada, experience in necessity for He is a valuable man, having much nes where none of the others have. It emph ting a man that knows about foreign exchange just as promotly as pos ble. Mr. Cann himself may be able to help in this. The Assay Office men can undoubtedly give information about French coinage, as they handle considerable quantities of it. I would like to know whether L'ir. Jay submitted the details of the proposed arrangement with the Bank of France to the Federal Reserve Board, or simply submitted an application for consent to the appointment. 3. To 'larch 2, 1917. Mr. Curtis. The changes in the letter to be addressed to Pallain are (6) all of language and not substance, but I cannot prepare a final draft of either letter or memorandum until I hear from the office about -- If the Assay Office can be persuaded to waive the 54 (7). around. charge for bars, it will simplify the arrang Bank of matter clear to him will not tak officers of that s kindly to the Bank of Fjrce as the the Bank of England When the memora (8) took d to make a lot of correspondence with Cokayne of and I fear that Pal 11 the suggestion of putting such a charge It it should be carefully bour is finally the original copy sent as one document one steamer and another with an original lett r by sent by complete set Shape to be forwarded, fferent steamer. I suggest t margin instead of at the top, that that they be bound along being the French custom sections in foreign exchange matters Correspond (9) y and care than ted with more are co our domestic transactions. rstands these matters, his first job should be to sketch up of drafts, forms of advices and other matter of that kind, which sh lid be (10) er in the best form possible, and ready, in advance. that we may be ready to act promptly, I think we should get up the forms of letters, resolutions, etc., together with a form of agreement, to submit, for use with the other eleven Reserve Banks, and have them all ready to send out concluded. just as soon as the arrangements are 4. To - Mr. Curtis. March 2, 1917. The consent of the Federal Reserve Board to the appoint- ment of the Bank of angland was coupled with a requirement that the form of the agreement for participation by the other Reserve Banks must be submitted to the Board for approval. That strikes me as and, of course, should be undertaken info being reasonable nromptly and in ad- vance of submission to the banks. It is going to to the be most tIIJ terms of our arrangements in Lo mulled over by 120, or more, pet. which is used for these co an autbimiz ank directors tive Before eit our tors must of the agreem t rint that the paper in red across the top t'.., and must not be officers or directors addressed." respectively. London or Paris arrangement can be opera- pare a'Resolution, authorizing the adoption or memorandum authorizing the opening of so are to be s to the amount of money which we and their cond t Anki authorizing they prescribe, they and Paris, t the nresent coneensus of view of the should employ in Loud 4) avoid a teak in relation refore, 1 s are confiden othe of the Fede officers and to statement of the °liming general character; "The cont r13) I would like t ti. cations hat- in some conspicuous place disclosed cult the accounts signatures to drafts by such method as authorizing the endorsing of drafts. will be the authority for the officers of the babk to emnloy some of our money in these foreign transactions Prid, of course t to act for the other eleven reserve banks. This is all I can think of in connection with our proposed foreign T 5. To - Mr. Curtis. March 2, 1917. arrangements, and I will send the completed letter and memorandum just. as soon as I hear about the assay charges. Very sincerely yours, J. F. Curtis, Esq., Federal Reserve Bank, Mew YOf4 City. IAanver, Colorado, March 2, 1917. Dear Judge: Your telephone message was only next door to a visit, but I an sorry we did not have a better connee Likens' first letter to me (Whic was a very definite and positive de enclose) you 11 observe on not to come New York. I felt that it was so definite that I could not urge as he had already met Mr. W Pea , particularly d they had doubt- less discussed it to a fity, but a fe .ays later I got another latter from him, which s or a bit, so I at once wrote him again just on think it was on tionda able to move him, and then, s week, I telegraphed him, urging that he try and arrangout to se, me crossed one which he ceiving my letter, any way. This telegram espatched to me immediately upon re- he would endeavor to come out to see u].d telegraph e initely in a day or two. I then telegraphe hie again, adan of doing so, as I really felt that the me a situation sufficiently important to require a personal meeting before final decisi My decis n in sending him this telegram was hastened a bit by a letter from Warburg, in which he rather casually referred to a meeting with Aiken in which Aiken had communicated to him his decision, not nec- essarily final however, not to come to New York. I only got Aiken's reply day before yesterday and was awaiting his further telegram before deciding whether it was worth while to communicate with the office about it. 2. To - Mr. Curtis. 14arch 2, 1917. e thing I find it difficult to explain is the positive character of Aiken's first letter, Which is enclosed, and then the terms of his second letter, which seem to leave a loop-hole. I hope you may make progress with /I' and I will see What I can do. Very 4 erely yours, J. F. Curtis, Esq., Federal Reserve Bank, New York City. lines. send him out here Denver, Colorado, iarch 1917. Dear Judge: Referring to your letter about the Ban-fl of France communication, I want to continue our conversations at Ph France mtter to illustrate one of the deny procedure of the bank. about the or- Your let was signed by one slight change in it, after apparently taking it ho and then added a postscript t ition of hand-written post- scripts, or making letter, so that the in the bans does not co am WT . as to the wa everybody seem are just on th Jay perso record the other end of the line. Th c Importance as a matter The real point town, not be taken out of the then It is of slight importanc or up some value as a record of the business of 't bank in that way and Jay, Who made respondence with me, but of considerable actice. this ter, however, is to advise you that i y a little letter of complaint and protest gold bars has to take a crac been handled. In the first place, at it and now at the last minute, when we ve of sending our letter to Prance, the terms of which are dependent soma t upon the arrangement made about these assay office charges, Mr. Jay sends me telegrams, asking for, further information. to call your attention to the fact, as I have his, that i wrote the bank some months ago, urging that a study of this subject be made so that we would be well prepared in advance to deal with it. The proper course to have 2. darch 2, 1917. To - ;Ir. Curtis. followed upon receiving my fIrct letter would have been to assign one of the Junior officers, or pcseibly two of them, to ricking a thorough in- vestigation and report, as was done in the matter of Fiscal Agency affairs. Apparentiy that course was not followed and the bank seems to be relying I hate an certain its feasibility. ought to try to develop it i stall and as- se last minute - 'hor and distrus ore. deci half-baked. here, that -estion of what really only permit we to me=ze a broad s and do, relying upon the man at the b ant t I ha upon the very general information and via Somehow or other eiag applied to some of these havL a fooling that pains matters fequiring lnveatIaon and wiiore ac4qacy and detaiLis important. k of England letter, the poor '.nde After -11 of our coi never should have been letter got off with a cla there, re- suiting' in Cualiffe's w.$ . aments ,e have further dealings to be couductod h these fo7e16'n tion rve Board; still to be effected in connec- also negotiations with the other eleven banks; a dling of the work in our on office. lot of detail I have en- of the things that deavored in my oarate letter to need to be done but, frankly, these are matters of detail to some extent yolg to suggest some with which I ha e had little recent exoerience and I cannot personally rely upon Iv own knowledge of these details to maKe sure that everything is covered; that must he done bo negotiations with the someone that the bank must employ and the aeserve 3oard and the other bans must be conducted by one of the officers who is acquainted with this whole story and not by a number of the officers. Po let us put the handling of this matter in 3. To - Mr. Curtis. March 2, 1917. the hands of one Person, not lot it get scattered throughout the bank, and hold that one 2erson responsible to see that everything is attended to promptly and correctly, mthing anitted and no mistakes made. I have net written Trenan as I have to you and Jay about this, because I would rather lose an arm than hurt his feelings In the s1i8htest degree it is up to you and Jay to arrant you will write ne an encouraging report se ma the way they and I do hope e oing to be handled. It is bad form for eta to be writing to you about in this instance seems to /"ev natter which am doing so, how-- ever, becaese eTe tented it n ?hoenix and I thinX agreed that sonathingbad to be d f the Sonior officers better e to Nr. Jay, is simply to orsnalged. This let register my last kick on su ing letter as lone. as 7 but, if 1 ever get back and those rough oleces are net smooth dust f ng about in t You fell will never write another complainyou ola man there is doing to be some ba.. at mill make it a very uncomfortable place. can afford to tete the tint() to sit dawn tnd talk these natters over frankly ves and I hone this letter ray inspire yo y and Jay and Treman o do no. Best re e .s and go00. luck to your efforts Faithfully yours, J. F. Curtis, Esq., 57 East 52nd St., New York City. BS/CC Denver, Colorado, March 4, 1917. Dear Mr. Curtis: Yours of the 27th ult. is just received. ?allain's reply, which Mr. Treman telegra founded my prophesy was that the anno Also a copy of me. ph..e note how well anoointment would be taken by Pallain a meaning much mo does. It is extraordinary how Fr emotions come to do hope that the necessity crstanding and very unpleasant thing to one's pet business, ailure. You knaa it is a deflated. ur letter, I can picture . and, Don't get gay and enlist; that I expect that one or both of my boys the service if we really get so opOosed to the Whole volunteer system that down to sometimes or us to got licked than to subject the nation think it woul to the injusti surface and like Umslopagas, filing your teeth in preparation for Will f d a way into so baa ragraph o you polishing up your wea is not your job just than it really ich we have taken will not result in some ml: Commenting 0 making the out of consent and outrage of a continuance of the volunteer system. Very sincerely yours, J. F. Curtis, Esq., Federal Reserve Bank, New York City. \t\A Denver, Colorado, March 4, 1917. r.RSONAL. Dear Judge: Thanks for yours of the 28th, enclosing check for ,308.510. have sent the Piping Rock vouchers to Urs. know whether the account is squared up much, let me know and I will ft I am blest if I not; if you 0.,.z paid me too refund. is hard to suggest anyone to take Er. Cann's experience which was needed i He had . really disturbed that he is leaving. Ability to locate aluable asset lee and it's got to be who understands foreign The only way em is to hunt. to reneat a suggestion t I hav location of the right sho done r the bank ellows, to get exactly the right man to do the or exchange. in If you will permit no equently made about the bank, the one man's job, and this ought to be away without-any eelay, or we may be caught in a very uncom- fortable sit This ma man is going to really is nothi d when we should be avermaned. er of getting a good credit man and a good foreign exchange in my mind until I hear that they have got them. There I can do from here, except to say "hunt". I am enclosing, with diffidence, cox of my letter to -eAdoo on the subject of a Budget, which please consider as confidential. After mailing it I read the debate at the Constitutional Convention in New York, all covering this same subject and I am satisfied that I am not as far wrong In this matter as most amatures are in offering suggestions about other 2. To - Mr. Curtis. karc 4, 1917. people's business. 1 am keen to get hold of that book on the budget to Which you refer. Treman has written those Bank of me of the action of the Committee regarding England cables; the Whole me a lot, because distre it really was badly handled at the offi andwe seem to with an unnecessary rumpus and yet will cave a very bad confronted cord if we de- cido not to have a ruMpus. On the Whole, I think of the that this is no time to b lves. for all of those matters r matter is The responsibility d it should be put on my shoulders, and vs our Reserve Board and then i bank say so to the ow with me, 1 guess I can tackle keep hard the job as well as anybo feelings out of the bank, which is important. am still await bout Assay Offioe charges before corn- pleting r letter. Faithfully yours, a. Cu_ IiidaTgI-Reserve Bank, New York City. atc. 2. To - Ur. Curtis. tdarch 4, 1917. people's business. I am keen to get hold of that book on the budget to Which you refer. Treman has written me of the action of the Committee regarding those Bank of England cables; the Whole distre me a lot, because it really was badly handled at the of ft andwe seem to confronted with an unnecessary rumpus and yet will eave a very bad cord if we de- cide not to have a rumpus. On the Whole, I thin4 broadest that this is no time to be ghting among o for all of those matters r ly rests upon shoulders, and 1 of the matter is slvea. d it should be put on my ve our Reserve Board AnA then 1 The responsibility bank say so to the ow with me, I guess I can tackle the job as well as aaybo keep bard feelings out of the bank, which is important. am still await pleting bout Assay Office charges before corn- etter to Pallain. r letter. Faithfully yours, A. F. Curt FedeTSI-fieserve Bank, New York City. BB/GC Denver, Colorado, March 7, 1917. Dear Judge: Thanks for yours of the 3d, with t letter. I have sent him a reply as per in our files. allain's closed copy, ch can go It is a strange thing that the French Consul her to whom I telephoned about t that he knew nothing Whatev letter. J. F. Curtis, Esq., Federal Reserve Bank, New Yor- City. BS /CC t Denver, ble came, claimed never heard of such a Form 1217 CLASS OF SERVICE DESIRED Fast Day Message .y Letter InfESTE ISn UNION TEL' AM WESTERN UNION Night Message Night Letter Patrons should mark an X opposite the class of service desired; OTHER "'SE THE TELEGRAM RANSMITTED AS A WILL . FAS DAY MESSAGE. Send the following telegram, subject to the terms on back hereof, which are hereby agreed to Receiver's No. Check Time Filed NEWCOMB CARLTON. PRESIDENT CO?Y. Denver, Colorado, March 7, 1917. J. F. Curtis, Federal Reserve Bank, New York City. Omissions regarding abrasion foreign coin due to my having no data which I requested Balm to investigate and then overlooked. Think clause covered by separate letter requesting suggestions stop/. waiving advantage future Moratoria is desirable if you consider such provision is even morally binding. Benjamin Strong. It can be ALL TELEGRAMS TAKEN BY THIS COMPANY ARE SUBJECT TO THE FOLLOWING TERMS': To guard against mistakes or delays, the sender of a telegram should order it REPEATED, that is, telegraphed back to the originating office for comparison. For .-half the unrepeated telegram rate is charged in addition. Unless otherwise indicated on its face, THIS IS AN UNREPEATED TELEGRAM AND PAID FOR AS SUC, consideration whereof it is agreed between the sender of the telegram and this Company as follows: The Company shall not be liable for mistakes or delays in the transmission or delivery, or for non-delivery, of any UNREPEATED telegram, beyond the amottm eived for sending the same; nor for mistakes or delays in the transmission or delivery, or for non-delivery, of any REPEATED telegram, beyond fifty times the sum received sending the same, unless specially valued; nor in any case for delays arising from unavoidable interruption in the working of its lines; nor for errors in cipher or obscure ?grams. In any event the Company shall not be liable for damages for any mistakes or delays in the transmission or delivery, or for the non-delivery, of this telegra whether used by the negligence of its servants or otherwise, beyond the sum of FIFTY DOLLARS, at which amount this telegram is hereby valued, unless a greater value is stated in citing hereon at the time the telegram is offered to the Company for transmission, and an additional sum paid or agreed to be paid based on such value equal to one-tenth of le per cent. thereof. The Company is hereby made the a,mt of the sender, without liability, to forward this telegram over the lines of any other Company when necessary to reach its astination. Telegrams will be delivered free within one-half mile of the Company's office in towns of 5,000 population or less, and within one mile of such office in other cities or Beyond these limits the Company does not undertake to make delivery, but will, without liability, at the sender's request, as his agent and at his expense, endeavor to Jntra c t for him for such delivery at a reasonable price. No responsibility attaches to this Company concerning telegrams until the same are accepted at one of its transmitting offices; and if a telegram is sent to such office ,wns. y one of the Company's messengers, he acts for that purpose as the agent of the sender. The Company will not be liable for damages or statutory penalties in any case where the claim is not presented in writing within sixty days after the telegram is led with the Company for transmission. Special terms governing the transmission of messages under the classes of messages enumerated below shall apply to messages in each of such respective classes in addition to all he foregoing terms. S. No employee of the Company is authorized to vary the foregoing. THE WESTERN UN ION TELEGRAPH COMPANY INCORPORATED NEWCOMB tARLTON. PRESIDENT CLASSES OF SERVICE FAST DAY MESSAGES A full-rate expedited service. NIGHT MESSAGES Accepted up to 2.00 A.M. at reduced rates to be sent during the night and delivered not earlier than the morning of the ensuing business day. DAY LETTERS A deferred day service at rates lower than the standard day message rates as follows: One and one-half times the standard Night Oi:Letter rate for the transmission of 50 words or less and one-fifth of the initial rate for each additional 10 words or less. SPECIAL TERMS APPLYING TO DAY LETTERS: In further consideration of the reduced rate for this special "Day Letter" service, the following special terms in addition to those enu- merated above are hereby agreed to: Day Letters may be forwarded by the Telegraph Company as a 'deferred service and the transmission and delivery of such Day Letters is, in all respects, subordinate to the priority of transmission and delivery of regular telegrams. Day Letters shall be written in plain English. Code language Is not permissible_ c. This Day Letter may be delivered by the Telegraph Company Letter shall be delivered on the day of its date absolutely and at all events; but that the Company's obligation in this respect. is subject to the condition that there shall remain sufficient time for the tran.smission and delivery of such Day Letter on the day of its date during regular office hours, subject to the priority of the transmissiOn of regular telegrams under the conditions named above. No employee of the Company is authorized to vary the foregoing. NIGHT LETTERS Accepted up to 2.00 A.M. for delivery) on the morning of the ensuim business day, at rates still lower than standard night message rates, a follows: The standard day rate for 10 words shall be charged for the trans mission of 50 words or less, and one-fifth of such standard day rate for 1 words. shall be charged for each additional 10 words or less. SPECIAL TERMS APPLYING TO NIGHT LETTERS:, . In further consideration of the reduced rate for this special "Nigl Letter" service, the following special terms in addition- .to 'tho. enumerated above are hereby agreed to: Night Letters may at the option of the Telegraph:, ompar be mailed at destination to the addressees, and the Corn y be deemed to have discharged its obligation, in such cases vtih respe by telephoning the same to the addressee, and such delivery shall be a to delivery by mailing such Night Letters at destination,- ,posta complete discharge of the obligation of he Telegraph Company to prepaid. Night Letters shall be written in plain English. Code langua deliver. D. This Day Letter is received subject to the express understandis not permissible. ing and agreement that the Company (loe.s not undertake that a Day No employee of the Company is authorized to vary the foregoing. Colorado, Denver; March 15, 1917. Dear Judge: Yours from Boston is just receive& on my return from Chicago, Where I had a bully visit with Aiken and McDougal. my let Jay writes me that he has turned gold matter, together correspondenc with the copies ttacned, to tter was sent you without detailed 0-rumination; tha to him for his own egarding the do mightly lit benefit and it will good to have Again let hiqelegatc examination of inc suggest a further cult Mry letter of March to the effect that tter received from Mr. Jay referred to a subject of Assay vestigate charges and let me know Office t I could incorporate any changes ry, but necessary as a result after waiting some days and Lied making any change in the Pallain hearing nothing furt and memorandum and sent it on to you. I completed t letter pt of selective values". tion of the"co f the 6th 8: 8th, Which antedate your Boston hand-written the various points covered by my recent letters letter and on this subje with all of th now that the are before me, but I want to read them over carefully, correspondence before me, before replying. I understand tors are on the way to France and only wish that I was on the way there too. Best regards and many thanks for your patience in this matter. Very sincerely yours, J. F. Curtis, Esq., Federal Reserve Bank, New York City. BS/CC Denver, Colorado, March 15, 1917. Dear Mr. Curtis: I have just been over yours of the 6th and am somewhat puzzled when finally as to just what shape the Bank of France mailed. Apparently, the changes ment jd in your, co rate memorandum enclosed therewith, ld not have refe ed to signed copies Which I mailed to the bank on the 2nd, changes had already been mad pii400M1 ther" occurs in the last lin-J should be the word "other". The change in No. 11-(a) course, all right now that the standards The corre raph 8. making a period after the word "ownership" must ref ther t is the conclu The than the signed copy sent you, be- ng word of the paragraph in the one dated Larch rch 5th contains the Which you re to. the last sent e of paragraph 21; in of only once. one s to change in the last sentence of the poroosed chang 5th. use some of the es sent on that date. Referring to the M are known. the your reference lines, etc., do not corre of 12-(e), but ed by the sepa- addition to paragraph 8 I am unable to understand what you mean by omitting mu opinion, paragraph 21 consists The change in paragraph 19 is, of course, all right. The memorandum of changes suggested in the letter do not correspond with my last copy end 1 cannot tell exactly how to correct my copy. I understand the is ter i As has been sent; won't you also send me for my files 40, Otf*, an exact copy of the final draft, eibodying all changes made? further advices. Very sincerely yours, I await your DENVER, COLORADO, March 19, 1917. Dear Er. Curtis: Yours of the 16th is just received and i you at once I am returning the draft of the prop:\ de la Nacion Argentina, without retaining a copy a er to get a reply to letter to the Banco without attempting to t without any de- recast it, as I realize that you will lay and it can just as well be prep the office. Replying first to the c nod in your letter:- Paragraph 5, sterling bills, was included suggestin of introducing our facilities be- simply as a su,zestion to offer a tween the Argentine b ndon banks Which are now entin customarily employed credits. I thithink.:arburg overlooks one matte - the process of shifting comer- cial credits f am on as from London to New York, al- most inva y results edits in opening in New York, needs c particula delayed both or if ste in , rkets. such as an Argentine exporter, at first He may be drawing bills on London when he 1 thought it might prove an added facility, communication between the Argentine and London is to have a New York market for those sterling bills. The matter is not particularly important and i certainly don't urge the suggestion, although I think you will find that some such plan is alread: in mind in connection with the arrangements in the Philippines, Where a somewhat similar situation exists. Paragraph 6 of my draft was included for a number of reasons, the 2. To - Mr. Curtis. March 19, 1917. principal one being that unless some such business is conducted, the whole arrangement is a barren one and really does not amount to anyThe Argentine bank carries balances now, thing. tant New York banks, and gets interest on them, relations with us are concerned, I cannot see the their having an account with us which wi The same thing is true as not only see no object in open in Buenos Aires, but I don't see account unless through so exchanges are liable purchase of ances in the gentine. 1 there and keeping of balances o account can be made a workable angement. In the first place, balance of the year, because of the character of the co tries, both of which are agri- pile Up millions of dollars in dead cultural. balances th an Argentine bank, with no other object than buying their p Paris a to time Al a considerable part of the year and then a friend ur ightest object in i terest, unless we are going to employ their balances from time bills. so far as their 4, 4 4 The situatio Berlin that it relationsh there is so different from that in London and straining matters a bit any way to attampt a not include commercial banking and including an investment feature, it might put us and them in thought it position to accumulate exchange in considerable volume when prices made it a purchase, so to speak, and that the accounts could be liquidated when exchange advanced. As for the qualification of my paragraph 2 about competition, etc., it strikes me as being all right and I can see no objection in the clause 3. March 19, 1917. To - Mr, Curtis. as now prepared. If that paragraph, as well as No's 5 3: 6, the scone of the proposed plan would be so limited as to be of no great value to either party, either in normal times or emergency. Possibly 7arburg overlooked the fact that t and exchange situation is quite different from tho Argentine currency prevailing and that they have adopted in the Argentine and 1 bel operation what is known as the go of the Indian Bmpire. redemption flInds in Europe and in this country and if t agents, they might not on1 vest the redemption commercial bi " or L.,- use-at bil burg's thought credit bl: a fo under nos edits ar their exchange custody of gold, but to ... es and, possibly, at times to in- he India Council in London in as is done b Warburg bvestigated d commerci to act as one of redemption p honor their drafts f e as that the Argentine government and the Banco de la Nacion Argent/ . Europe still have in e currency, the Unless I , in These are matters which I assumed trip and could advise us about. #4 is only partly true. The handling of gn bank agency and the purchase of bills drawn ansactions which go hand in hand. a small commission exacted for the commercial credit, there is always an exchange and a discount profit on the purchase of the say that the profits on the purchases of bills bills, and I should are 2, 3 and even 4 times as great as the commissions received for opening the credits and I still maintain that the purcnase of long bills in competition with member banks will be a serious tactical blunder and one which we would later regret. Why would it not be well to get the facts on this subject before coming to a 4. To - Mr. Curtis. decision? Larch 19, 1917. These can be obtained by a conference with the National City Bank, the Guaranty Trust Co., the Bank of New York, Bankers Trust Co. and other institution that are developing this business. I have endeavored endorsements. to answer above the inquiry in regard to mutual If we buy bills for each lily should guarantee them; at any rate I would not think of there without the guarantee of the Ban sed for us down de la Nacion Ar ntina, required them to guarantee, naturally we must do so 0 Commenting in general the provisions for purchas the le lves. the elimination of f sterling bil bills and, possibly, restri ting the purcha account, would so and if we for investing in New York of long dollar bills for our sal as to render it of no value. Please note c rding of paragraph 2. bills are very defini stood commerce Which are thoroughly under- those two wor ref erre Documentary e documents attached are almost invariably as shipping documents, except when the bill is drawn against shipments of gainst bills for collection, or against gold shipments, an t hardly seems necessary to make reference to those types of bills in th a letter. On page you refer to our possibly ear-marking ,;old certificates. To my mind this is a dangerous proposal. certificates in The Sub-Treasury redeems gold New York by paying gold coin which frequently has been in circulation for a long time and is abraded anywhere up to 1/2 of 1%. used to figure on an abrasion loss of 1/4 of 1% on the average in ._ We 3ith- To - Mr. Curtis. March 19, 1917. drawing coin for Shipment to Europe when bars at the premium of thousand could not be obtained. If we ear-marked gold for our correspondent and subsequently shipped the gold to them, there 'ght be a loss of 1/4 of or even more, which we would have difficulty the importance of dealing with emphasized. &X per this whole explaining. abrasion bars is matter o My suggestion is to make n and gold certificates whatever and state that we will ear-mark coin at its n takina that the abrasion shall ne value, wider- 1/2 of 1%, and possibly make some explanation that we are evoring can hope to get bars of practical Here again, get into a position where we a weight for use in transactions of this character. The suggestie. f holding go the service seems a ttle inconsiste plan and it might be ser to put th se ; on and making a charge for any way with the general scope of the clause in the form of an inquiry as similar to those being made for another correspstent, would be of any value. my first draft mitted an:; reference to a Moratorium. prossion tbaJ Moratorium was When the wa I am established in the Argentine but just What the situation is now I cannot say. It might be well to inqu3.re.. If it is decided to leave in the clause about purchases of bills payable in dollars, I would advocate leaving in the sentence which you mark as redundant on page 6, simply for emphasis. Commenting only on the form of the letter, the first sentence 6. To - r. Curtis. March 19, 1917. impresses me as being weak and a cordiality Which these little lacking in the character of South Americans expect. On needs to make a very polite bow in the opening and concluding sentence fellows, Which I suggest be done in f a letter to those this case. ascertain fro:: the B7: all means before sending the National City Bank just what volume of business they haw Important it is, so as to be copy of the letter Whenever it the letter finally sent to Franc side. Won't oing in bills and u send me a dispatched, also a copy of Warburg Is satisfied with what is being done in this Argon Success to you the extent of keeping Warburg happy about °rely yours, J. F. C Secreta Federal New York BS/CC Enc. serve Bank, ty. Denver, Colorado, Larch 21, 1917. CONFIDENTIAL. My dear Judge: Yours of the 17th was just what I needed. I have been hung up out here so long tha tell you the truth, am ilk chunk of venison that has gotten a bit high. work of the Se On the question of reorgani r officers, Which should be a work of dire° of actual drudgery, let me make the following comments, better at a distance than I Three thi in my mind in this connection can face to face. fore you: which I want you and ce make it extremely difficult 1. The etre with you and him and impossible for me to get into for me to do and roc() oharaet osed upon all of you by my absence with difficulties are duo to the temporary ze how much t ements made in mw behalf. of present ar d any difficulty in applying authority as I have never distinct influen o subordinates. It does not cost me a pang to chop the head off an incompetent subordinate in the bank. That is not true of those with whom one is associated on even ground and, particularly, when they are men of equal or greater ability and brains, whom one deals with as personal friends and associates rather than underlings, so I have been guilty of a certain procrastination myself in facing some of these questions with my own pals. March 21, 1917. To - Mr. Curtis. No consideration of friendship, loyalty or obligation to an ildividual would outweigh with me the obligation to the bank in having it managed right, so, no matter what it may invo V and discussion, I think you and Jay and I have go results that will relieve env of us of anxiety on Your infernal modesty, or someth ng you to assume an attitude of ignor they are and how score. has always led , to matters nvinces me that that is all You know just as well bluff. o cooperate to get even indiffere Your of routine organization. ust as b in the way of pressure I do where the weaknesses , with my blessing, I am writing should be correct to say - go to it. For a day or o I was so out I could have writte eivdence of mg ficient e lavsi r with that gold matter that with great enjoyment, but it is . and mental ol to do so. attempt to fix respons that it have to's ato Ja;), from me, however, that without not the only t fellows .:40 m, rovement out here that I had suf- Delano "pronunciamentos". bility, the matter was inexcusably neglected and You out the responsibility among yourselves. ere Friday and I may hear news about these various Without posing as a prophet, but rather as a sport, I would be willing to wager a bet that the first announcement about Treasury bills was made with the President's approval only after representations had been made to the President by members of the Reserve Board and in McAdoo's absence; that upon McAdoo's return he convinced the President that a mistake had been made, and that it was due to the President's insistence through that 3. - Ur. (Artie. March 21, 1917. McAdoo that the Bank of England and that the announcement was made on December 26th recent announcement, Which I think has been called the Crow Banquet, was simply a deferred righting of the mi take Which could not be righted earlier without practically disgracing tReserve Board. no information to substantiate this theory but be ve it I have strong enou,jh to bet on it. About the Argentine matter. I am glad we are ahead in a tentative way because after all policy of dela upon very sound t it was justified. reasoning and can come of the approach and co Warburg's proposal that we should go ahead blind these matters and co No harm good will result through keep- I am lug Warburg happy. is not based tion from member banks, in ainly would not are primarily the in opt that policy. The Reserve Banks tating and conserving the business get that principle out of our minds and beco protect Independent of our own proprietors that we don't successfully d promote their terests, we will begin to witness the decline and fall You me abo e Russian upheaval. It whipped me off my feet -- not so much the revolution but the evidence of the personal distrust of the Czar. I have always had a good deal of confidence in the feeling of respect and admiration of the common people of Russia for the Little its Father and would not have been surprised to hear of a wholesale massacre of his incomnetent and Pro-German hangers on. What has now taken place is so ex- treme that I fear the consequences somewhat. 3ne cannot start democratic 4. To - Mr. Curtis. March 21, 1917. ideas in a mass of 170,000,000 uneducated people and give them the reins of authority without for awhile. having the vehicle bumping over a pretty rocky road In other words, what forces can be r tremendous tdvalution of loose-jointed empire government and as Russia? led upon to check this ideas of vernment in such a table about it until I won't feel co we read of the Russian armies winning ?tor' How Just now one thought is much in my mind. the Democratic narty, including the President, ople of this co try without sinking hearts When they malt y ars ago the ablest men in the es to the United States were literally on that steps be taken beg- ountry against eventualities, by he enactment of sui 127 army and navy. Nothing re of delay and what we do ac- that we now can do complish will be at administration, oost almost p a. bitive. appetite and after the elapse of a am confident that little t and Mr. ay to take a fl spendin to do this it would be good business for Mr. Treman say leaving on the Century on Friday, and few hours wit o in Chicago to discuss matters. I would like before any opinion crystalizes as to a reorganiza- tion of the bank's personnel. Please talk it over with them. Very sincerely yours, F. Curtis, Esq., Federal Reserve Bank, New York City. BS/CC Check _ettor ilould mark an X oppoclass of service desired; .RWISE THE TELEGRAM -L BE TRANSMITTED AS A FAST DAY MESSAGE. TEL AM "ime Filed NEWCOMB CARLTON, PRESIDENT Send the following telegram, subject to the terms on back hereof, which are hereby agreed to Denver, Colorado, elarch 23, 1917. J. F. Curtis, Federal Reserve Bank, New York City. Telegram received. Suggest cabling Cunliffe substantially as follow We suggest tko rf'ollowin, four Changes in revised memorandum of liarch nineteen First omit references in openin, sentence and in naragraph twelve to sixteen. conclusion of aar as we propose earlier start. Second omit provision In paragraph six for ear marking gold only at convenience of debtor institution so 'Lhat account will be definitely on a sold basis but debtor institution will be protected by understanding that it shall name in advance the limit of sec'. obliee'ations to be incurred. Third omit change in paragraph ten with respect to word voluntary so as to conform to lest suggeetion. Fourth omit words if so agreed in paragraph twelve under same understanding as In our second suggestion stop. As 40 contemplate trensactions as sooa as pronosed arrangement ratified it is necessary in present circumstances to define understanding that obligations will be mat in gold if not otherwise settled but we would expect you in advance of operations to place the limit which you desired upo. the amount of gold obligation which you would incur stop. All other changes satisfactory. We will await your reply End of cable. ?lease mail copy of su,gestions before revising memorandum. cable as finalleg sent. Benjamin Strong. Chg. Benj. etrong, 4100 klontview Blv. To guard against mistakes or delays, the sender of a "telegram should order it REPEATED, that is, teiegiapoc,.. one-half the unrepeatecLtelegram rate is charged in addition. Unless otherwise indicated on its face, THIS IS AN UNREPEATE '1-1:II,Ec; RAM AND PAW in consideration whereof it is agreed between the sender of the telegram and this Company as follows: The Company shall not be liable for mistakes or delays in the transmission or delivery, or for non-delivery, of any UNREPEATED telegram, beyond received for sending the same; nor for mistakes or delays in the transmission or delivery, or for non-delivery, of any REPEATED telegram, beyond fifty times the sm. sending the same, less specially valued; nor in any casesfor delays arising from unavoidable interruption in the working of its lines; nor for errors in cipher o, ants. In any event the Company shall not be liable for damages for any mistakes or delays in the transmission or delivery, or for the non-delivery, of this telegram, wh, caused by the negligence of its servants or otherwise, beyond the sum of FIFTY DOLLARS, ,at which amount this telegram is hereby valued, unless a greater value is stat, writing hereon at the time the telegram is offered to the Company for transmission, and an additional sum paid or agreed to be paid based on such value equal to one-tent one per cent. thereof. The Company is hereby made the a,nt of the sender, without liability, to forward this telegram over the lines of any other Company when necessary to reach it. destination. Telegrams will be delivered free within one-half mile of the Company's office in towns of 5,000 population or less, and within one mile of such office in other cities or towns. Beyond these limits the Company does not undertake to make delivery, but will, without liability, at the sender's request, as his agent and at his expense, endeavor to contract for him for such delivery at a reasonable price. No responsibility attaches to this Compacy concerning telegrams until the same are accepted at one of its transmitting offices; and if a telegram is sent to such office by one of the Company's messengers, he acts for that purpose as the agent of the sender. The Company will not be liable for damages or statutory penalties in any case where the claim is not presented in writing within sixty days after the telegram is filed with the Company for transmission. Special terms governing the transmission of messages under the classes of messages enumerated below shall apply to messages in each of such respective classes in addition to all he foregoing terms. S. No employee of the Company is authorized to vary the foregoing. THE WESTERN UN ION TELEGRAPH COMPANY INCORPORATED NEWCOMB CARLTON. PRESIDENT CLASSES OF SERVICE FAST DAY MESSAGES A full-rate expedited service. NIGHT MESSAGES Accepted up to 2.00 A.m. at reduced rates to be sent during the night and delivered not earlier than the morning of the ensuing business day. DAY LETTERS A deferred day service at rates lower than the standard day message rates as follows: One and one-half times the standard Night Letter rate for the transmission of 50 words or less and one-fifth of the initial rate for each additional 10 words or less. SPECIAL TERMS APPLYING TO DAY LETTERS; In further consideration of the reduced rate for this spacial "Day Letter" service, the following special terms in addition to those enumerated above are hereby agreed to: Day Letters may be forwarded by the Telegraph Company as a deferred service and the transmission and delivery of such Day Letters is, in all respects, subordinate to the priority of transmission and delivery of regular telegrams Day Letters shall be written in plain English. Code language is not permissible. c. This Day Letter may be delivered by the Telegraph Company by telephoning the same to the addressee, and such delivery shall be a complete discharge of the obligation of the Telegraph Company to deliver. This Day Letter is received subject to the express understanding and agreement that the Company does not undertake that a Day D. Letter shall be delivered on the day of its date absolutely and at all events; but that the Company's obligation in this respect is subject to the condition that there shall remain sufficient time for the transmission and delivery of such Day Letter on the day of its date during regular office hours, subject to the priority of the transmission of regular telegrams under the conditions named above. No employee of the Company is authorized to vary the foregoing. NIGHT LETTERS Accepted up to 2.00 A.M. for delivery on the morning of the ensuing business day, at rates still lower than standard night message rates, as follows: The standard day rate for 10 words shall be charged for the transmission of 50 words or less, and one-fifth of such standard day rate for 10 words_ shall be charged for each additional 10 words or less. SPECIAL TERMS APPLYING TO NIGHT LETTERS: In further consideration of the reduced rate for this special "Night addition Letter" service, the following special terms in enumerated above are hereby agreed to: A. Night Letters may at the option of the Telegraph Company be mailed at destination to the addressees, and the Company shall be deemed to have discharged its obligation in such cases with respect to delivery by mailing such Night Letters at destination, postage prepaid. B. Night Letters shall be written in plain English. Code language is not permissible. No employee of the Company is authorized to vary the foregoing. Denver, Colorado, March 26, 1917. My dear Judge: Thank you for yours of the 20th on the ma r of the correspondence with the Bank of France. This seems to strait: everythine out so far as you and I are concerned and now we 1/11'4 t await, 117.! mistake about your telegram was due to my a had received the final draft of reakbion in Paris. otion that you and memorand u which did not reach you in fact until the fo We have haa another fall is again deferred. They t bore and, consequently, golf sudden changes of spring in this count f those miserable, raw March days suc York. Delano_ concerning Treman, so will not ry truly yours, Federal New York BS/CC serve Bank, . repeat. the drizzly, I had a bully visit with Best r J. F. at1, Esc., weather in Denver, Colorado, March 29, 1917. Dear Judge: drop look I me Thanks for the promise of a letter. to you to a line now and then, reporting the progress made by the upper circle in the bank. The cable to Cunliffe is surely all right PTO 1 hope we get a prompt and satisfactory reply. I had a bully visit with Delano. He is all right, soun on the various matters that we have discussed so frequently, and I think will be an influence to prevent a narrowing down of policies in Washington, but our little German friend finds it very difficult to keep his finger out of the pie in the bank in New York. in I have warned him to get himself good trim against my return in June, when he will find a very stubborn and rebellious partner at the bank, prepared to have his own way a great deal more than seems to have characterized the management of the bank recently. I may be a little over severe about Warburg's attitude, but recently I must confess ho has jilted me pretty hard in the apnearance of a rather unreasonable attitude towards the management of the bank in New York PnA we have got to have it out sooner or later. This morning I put in my first real attempt with some gold practice with the professional. which I am determined to conquer. Everything went all right except my wo After getting a drive going in perfect shane from the tee with a good straight ball from 250 to a maximum of 280 yards, I smashed the head off the club, but with the irons, the professional 2. llarch 29, 1917. To - Mr. Curtis. home and lick you. I will go back says that in a month he will guarantee after the other without perfect approach shots9 one right I made eighteen The result in a miss, which is pretty good for me. afternoon, I could lick my weight in wild eats. that I feel so good this all in a couple Best regards to all the boys. I hope to see you i of months. Faithfully yours, J. F. Curtis, Esq., Federal Reserve Bank, New York City. BS/CC Denver, Colorado, April 3, 1917. Dear Mx. Curtis: Yours of :Jamb 30th reached me last evening ann, as you will realize when you receive mg letter of April 2nd, the changes which you suggest while different in language are identical in purpose with those contained in my letter, so I have telegraphed you today as per enclosed confirmation. As to my remaining here any longer, it really is becoming ridiculous. When I az, able to play eighteen holes of golf every day, have gained twenty-six lounds, for I now weigh nearly 156, and am _ stronger and more vigorous than I have been in years, I feel very much like a slacker. This is impressed upon me all the more now that I have one boy in a mobilization camp and another one straining at the leash to get away - I have no doubt he will do so Whatever I say, so it is time for me to get back home, as I have telegraphed. Very sincerely yours, J. F. Curtis, Laq., Federal Reserve Bank, New York City. BS/CC Form 1217 CLASS OF SERVICE DESIRED Fast Day Message WESTE cc- E nay Letter UNION Receiver's No. WESTERN UNION Night Message Check TEL'WS" AM Night Letter 'I mark an X opposite the cia,.,f service desired: Patrons sI OTHERWISE THE TELEGRAM WILL BE TRANSMITTED AS A FAST DAY MESSAGE. Time Filed NEWCOMB CARLTON, PRESIDENT Send the following telegram, subject to the terms on back hereof, which are hereby agreed to Denvor, Colorado, April 3, 1917. J. F. Curtis, Federal Reserve Bank, Now Yora City. "onlying yours thirtioth hivesAready mailed lottor euasosting almost idontioal ChanGos yen propose stop. Iu view of developments I am strongly tempted to return at any rate for brief period so as to exchande vlows as to our policy in New York and ,:4shington. hew you and other° fool. Benjamin StronL;. Chg. Benj. Strong, 4100 Vontview Blv. _:e1e6raph ALL TELEGRAMS TAKEN BY THIS COMPANY ARE SUBJECT TO THE FOLLOWING TERMS: To guard against mistakes or delays, the sender of a telegram should order it REPEATED, that is, telegraphed back to the originating office for comparison. For thi one-half the unrepeated telegram rate is charged in addition. Unless otherwise indicated on its face, THIS IS AN UNREPEATED TELEGRAM AND PAID FOR AS SUC in consideration whereof it is agreed between the sender of the telegram and this Company as follows: The Company shall not be liable for mistakes or delays in the transmission or delivery, or for non-delivery, of any UNREPEATED telegram, beyond the amount received for sending the same; nor for mistakes or delays in the transmission or delivery, or for non-delivery, of any REPEATED telegram, beyond fifty times the n received for sending the same, unless specially valued; nor in any case for delays arising from unavoidable interruption in the working of its lines; nor for errors in C. ,,er or obscure telegrams. In any event the Company shall not be liable for damages for any mistakes or delays in the transmission or delivery, or for the non-delivery, of this telegram, whether caused by the negligence of its servants or otherwise, beyond the sum of FIFTY DOLLARS, at which amount this telegram is hereby valued, unless a greater value is stated in writing hereon at the time the telegram is offered to the Company for transmission, and an additional sum paid or agreed to be paid based on such value equal to one-tenth of one per cent. thereof. The Company is hereby made the nc^nt of the sender, without liability, to forward this telegram over the lines of any other Company when necessary to reach its destination. Telegrams will be delivered free within one-half mile of the Conipany's office in towns of 5,000 population or less, and within one mile of such office in other cities or towns. Beyond these limits the Company does not undertake to make delivery, but will, without liability, at the sender's request, as his agent and at his expense, endeavor to contract for him for such delivery at a. reasonable price. No responsibility attaches to this Compaor concerning telegrams until the same are accepted at one of its transmitting offices; and if a telegram is sent to such office by one of the Company's messengers, he acts for that purpose as the agent of the sender. The Company will not be liable for damages or statutory penalties in any case where the claim is not presented in writing within sixty days after the telegram is filed with the Company for transmission. Special terms governing the transmission of messages under the classes of messages enumerated below shall apply to messages in each of such respective classes in addition to all the foregoing terms. No employee of the Company is authorized to vary the foregoing. THE WESTERN UNION TELEGRAPH COMPANY INCORPORATED NEWCOMB CARLTON, PRESIDENT CLASSES OF SERVICE FAST DAY MESSAGES A full-rate expedited service. NIGHT M ESSAGES Accepted up to 2.00 A.M. at reduced rates to be sent during the night and delivered not earlier than the morning of the ensuing business day. DAY LETTERS A deferred day service at rates lower than the standard day message rates as follows: One and one-half times the standard Night Letter rate for the transmission of 50 words or less and one-fifth of the initial rate for each additional 10 words or less. SPECIAL TERMS APPLYING TO DAY LETTERS: In further consideration of the reduced rate for this special "Day Letter" service, the following special terms in addition to those enumerated above are hereby agreed to: Day Letters may be forwarded by the Telegraph Company as a deferred service and the transmission and delivery of such Day Letters is, in all respects, subordinate to the priority of transmission and delivery of regular telegrams. Day Letters shall be written in plain English. Code language is not permissible. c. This Day Letter may be delivered by the Telegraph Company by telephoning the same to the addressee, and such delivery shall be a complete discharge of the obligation of the Telegraph Company to deliver. This Day Letter is received subject to the express understandDigitized foragreement that the Company does not undertake that a Day ing and FRASER D. Letter shall be delivered on the day of its date absolutely and at all events; but that the Company's obligation in this respect is subject to the condition that there shall remain sufficient time for the transmission and delivery of such Day Letter on the day of its date during regular office hours, subject to the priority of the transmission of regular telegrams under the conditions named above. No employee of the Company is authorized to vary the foregoing. NIGHT LETTERS Accepted up to 2.00 A.M. for delivery on the morning of the ensuing business day, at rates still lower than standard night messKe rates, as follows: The standard day rate for 10 words shall be charged fo'f the transmission of 50 words or less, and one-fifth of such standard day rate for 10 words shall be charged for each additional 10 words or less. SPECIAL TERMS APPLYING TO NIGHT LETTERS: In further consideration of the reduced rate for this special " Nirig Letter" service, the following special terms in addition to those enumerated above are hereby agreed to: Night Letters may at the option of the Telegraph Company be mailed at destination to the addressees, and the Company shall be deemed to have discharged its obligation in such cases with respect to delivery by mailing such Night Letters at destination, postage prepaid. Night Letters shall be written in plain English. Code language is not permissible. No employee of the Company is authorized to vary the foregoing. Form 1217 CLASS OF SERVICE DESIRED Letter WESTEkaAA UNION at Message Night Letter Patrons should mark an X opposite thy of service desired: OTHERWi4. THE TELEGRAM WILL BE TRANSMITTED AS A FAST DAY MESSAGE. E WESTERNUNION '-st Day Message Receiver's No. Check Ark TEL vqzift AM Time Filed NEVVCoMB CARLTON, PRESIDENT send the following telegram, subject to the terms on back hereof, which are hereby agreed to ramvor, Colorado, April 49 1917. J. F. Curti°, Shoroham Rotol, -:AlshinGten,T. C. - complete confidonco as to AGroe a1.thwisdom of taking governors into vath status of various foroign proposals stop. iio, must So impressod confidential character of arranGements. 3on0amin Otroag. Chg. Bonj. Strong, 4100 riontview. ALL TELEGRAMS TAKEN BY THIS COMPANY ARE SUBJECT TO THE FOLLOWING TERMS! To guard against mistakes or delays, the sender of a telegram should order it REPEATED, that is, telegraphed back to th, originating office for comparison. Cr this one-half the unrepeated telegram rate is charged in addition. Unless otherwise indicated on its face, THIS IS AN UNREPEATED TELEGRAM AND PAID FOR AS SUCH in consideration whereof it is agreed between the sender of the telegram and this Company as follows: The Company shall not be liable for mistakes or delays in the transmission or delivery, or for non-delivery, of any UNREPEATED telegram, beyond the amotur, received for sending the same; nor for mistakes or delays in the transmission or delivery, or for non-delivery, of any REPEATED telegram, beyond fifty times the sum receive, for sending the same, unless specially valued; nor in any case for delays arising from unavoidable interruption in the working of its lines; nor for errors in cip' w obscur, telegrams. In any event the Company shall not be liable for damages for any mistakes or delays in the transmission or delivery, or for the non-delivery, of this telegram, whethei caused by the negligence of its servants or otherwise, beyond the sum of FIFTY DOLLARS, at which amount this telegram is hereby valued, unless a greater value is stated ir writing hereon at the time the telegram is offered to the Company for transmission, and an additional sum paid or agreed to be paid based on such value equal to one-tenth o; one per cent. thereof. The Company is hereby made the rm.ent of the sender, without liability, to forward this telegram over the lines of any other Company when necessary to reach it: destination. Telegrams will be delivered free within one-half mile of the Company's office in towns of 5,000 population or less, and within one mile of such office in other cities or towns. Beyond these limits the Company does not undertake to make,delivery, but will, without liability, at the sender's request, as his agent and at his expense, endeavor to ^ contract for him for such delivery at a reasonable price. No responsibility attaches to this Compa,iy concerning telegrams until the same are accepted at one of its transmitting offices; and if a telegram is sent to such office by one of the Company's messengers, he acts for that purpose as the agent of the sender. The Company will not be liable for damages or statutory penalties in any case where the claim is not presented in writing within sixty days after the telegram is filed with the Company for transmission. Special terms governing the transmission of messages under the classes of messages enumerated below shall apply to messages in each of such respective classes in addition to all the foregoing terms. No employee of the Company is authorized to vary the foregoing. THE WESTERN UNION TELEGRAPH COMPANY INCORPORATED NEWCOMB CARLTON. PRESIDENT CLASSES OF SERVICE FAST DAY MESSAGES A full-rate expedited service. NIGHT MESSAGES Accepted up to 2.00 A.M. at reduced rates to be sent during the night and delivered not earlier than the morning of the ensuing business day. DAY LETTERS A deferred day service at rates lower than the standard day message rates as follows: One and one-half times the standard Night Letter rate for the transmission of 50 words or less and one-fifth of the initial rate for each additional 10 words or less. SPECIAL TERMS APPLYING TO DAY LETTERS: In further consideration of the reduced rate for this special "Day Letter" service, the following special terms in addition to those enumerated above are hereby agreed to: Day Letters may be forwarded by the Telegraph Company as a deferred service and the transmission and delivery of such Day Letters is, in all respects, subordinate to the priority of transmission and delivery of regular telegrams Day Letters shall be written in plain English. is not permissible. Code language c. This Day Letter may be delivered by the Telegraph Company by telephoning the same to the addressee, and such delivery shall be a complete discharge of the obligation of the Telegraph Company to deliver. This Day Letter is received subject to the express understanding and agreement that the Company does not undertake that a Day D. Letter shall be delivered on the day of its date absolutely and at all events; but that the Company's obligation in this respect is subject to the condition that there shall remain sufficient time for the transmission and delivery of such Day Letter on the day of its date during regular office hours, subject to the priority of the transmissipn of II* ular telegrams under the conditions named above. No employee of the Company is authorized to vary the foregoing. NIGHT LETTERS Accepted up to 2.00 A.M. for delivery on the morning of the ensuing business day, at rates still lower than standard night message rates, as follows: The standard day rate for 10 words shall be charged for the transmission of 50 words or less, and one-fifth of such standard day rate for 10 words_ shall be charged for each additional 10 words or less. SPECIAL TERMS APPLYING TO NIGHT LETTERS: In further consideration of the reduced rate for this special "Nig, Letter" service, the following special terms in addition to tilt- enumerated above are hereby agreed to: Night Letters may at the option of the Telegraph Comp be mailed at destination to the addressees, and the Company be deemed to have discharged its obligation in such cases with re to delivery by mailing such Night Letters at destination, pc prepaid. Night Letters shall be written in plain English. Code Ian is not permissible. No employee of the Company is authorized to vary the foregoigig. 4If Form 1217 SIREO WESTEklAaNA UNION TEL1111! AM ty Letter Night Message Night Letter 'Id mark an X oppoof service desired; Wis.: "THE TELEGRAM 'E TRANSMITTED AS A m WESTERN UNION Message Receiver's No. Check Zw.ti 7riler Time Filed NEWCOMB CARLTON. PRESIDENT rAST DAY MESSAGE. ;end the following telegram, subject to the terms on back oereof, which are hereby agreed to Denver, Colorado, hril 4, 1917. J. P. Hotel, aohin6tan, D. C. CurtiShoreham Confidentially I am vory anxious If an ccumisnioners are sent abroad to doca with financial 0.4ra3gements with allies to have a hand in the neLptiations '0.t any rate so far as Reserve Barlii.s are concerned stop. Could you arrano to Bee either Secretary or Governor Jhile iu ashington, explain that i contemplated a :trio this year any way and fool very strongly that our relations vith proposed correenondents London and Parte make it desirable If it can be arranued atop. i can go at any tiLo 1:: ark; capacity desired and am perfectly able to do eo without injury to health. Chg, Benj. OtronG, 4100 Uontview. Benjamin Strenc. ALL TELEGRAMS TAKEN BY THIS COMPANY ARE SUBJECT TO THE FOLLOWING TERMS To guard against mistakes or delays, the sender of a telegram should order it REPEATED, that is, telegraphed back to the originating office for comparison. For t1 one-half the unrepeated telegram rate is charged in addition. Unless otherwise indicated on its face, THIS IS AN UNREPEATED TELEGRAM AND PAID FOR AS SUC in consideration whereof it is agreed between the sender of the telegram and this Company as follows: The Company shall not be liable for mistakes or delays in the transmission or delivery, or for non-delivery, of any UNREPEATED telegram, beyond the amour. received for sending the same; nor for mistakes or delays in the transmission or delivery, or for non-delivery, of any REPEATED telegram, beyond fifty times the .: ,ceive for sending the same, unless specially valued; nor in any case for delays arising from unavoidable interruption in the working of its lines; nor for errors in ciyiler or bbaen, telegrams. In any event the Company shall not be liable for damages for any mistakes or delays in the transmission or delivery, or for the non-delivery, of this telegram, whet"c caused by the negligence of its servants or otherwise, beyond the sum of FIFTY DOLLARS, at which amount this telegram is hereby valued, unless a greater value is &tater! i writing hereon at the time the telegram is offered to the Company for transmission, and an additional sum paid or agreed to be paid based on such value equal to one-lentil . one per cent. thereof. The Company is hereby made the :moat of the sender, without liability, to forward this telegram over the lines of any other Company when necessary, to roach it destination-. Telegrams will be delivered free within one-half mile of the Company's office in towns of 5,000 population or less, and within one mile of such office in otAcr.cities i towns. Beyond these limits the Company does not undertake to make delivery, but will, without liability, at the sender's request, as his agent and at his expense, endeavor t contract for him for such delivery at a reasonable price. No responsibility attaches to this Compa:ly concerning telegrams until the same are accepted at one of its transmitting offices: and if a telegram is sent to such offic by one of the Company's messengers, he acts for that purpose as the agent of the sender. The Company will not be liable for damages or statutory penalties in any case where the claim is not presented in writing within sixty days after the teaegta`m i Sled with the Company for transmission. . Special terms governing the transmission of messages under the classes of messages enumerated below shall apply to messages in each of such respective classes in addition toin: the foregoing terms. S. No employee of the Company is authorized to vary the foregoing. THE WESTERN UNION TELEGRAPH COM PAW INCORPORATED NEWCOMB OARLTON. PRESIDENT CLASSES OF SERVICE FAST DAY MESSAGES A full-rate expedited service. NIGHT MESSAGES Accepted up to 2.00 A.M. at reduced rates to be sent during the night and delivered not earlier than the morning of the ensuing business day. DAY LETTERS deferred day service at rates lower than the standard day message rates as follows: One and one-half times the standard Night Letter rate for the transmission of 50 words or less and one-fifth of the initial rate for each additional 10 words or less. IA - SPECIAL TERMS APPLYING TO DAY LETTERS: In further consideration of the reduced rate for this special "Day Letter" service, the following special terms in- addition to those enu- - Letter shall be delivered on the day of its date absolutely and ate 4.1 events; but that the Company's obligation in this respect isSubj,ee to the condition that there shall remain sufficient time for the ,traa. mission and delivery of such Day Letter on the dayofits -date (Liv.U) regular office hours, subject to the priority of the transmission of ular telegrams under the conditions named above. No employee of the Company is authorized to vary the foregoing. NIGHT LETTERS Accepted up to 2.00 A.M. for delivery on the morning of the ensin business day, at rates still lower than standard night message rates, follows: The standard day rate for 10 words shall be charged for the t ra" mission of 50 words or less, and one-fifth of such standard day rate for words_ shall be charged for each additional 10 words or less. merated 'above are hereby agreed to: A. Day Letters may be forwarded by the Telegraph Company as a deferred service and the transmission and delivery of such Day Letters is, in all respects, subordinate to the priority of transmission and ,. I ' delivery of regular telegrams. - B Day Letters shall be written in plain English. Code language is not permissible. c. This Day Letter may be delivered by the Telegraph Company by telephoning the same to the addressee, and such delivery shall be a complete discharge of the obligation of the Telegraph Company to deliver. This Day Letter is received subject to the express understanding and agreement that the Company does not undertake that a Day D. SPECIAL TERMS APPLYING TO NIGHT LETTERS: In further consideration of the reduced rate for this special "Ni Letter" service, the following special terms in addition to tit( enumerated above are hereby agreed to: Night Letters may at the option of the Telegraph Cornpa be mailed at destination to the addressees, and the Company be deemed to have discharged its obligation in such cases with resr to delivery by mailing such Night Letters at destination, po. prepaid. Night Letters shall be written in plain English. Code is not permissible. No employee of the Company is authorized to vary the foregoi (e7 Denver, Colorado, April 4, 1917. COFNIDMITIAL. L77r 11,1,1(7. Dear Judge: LAY mmig 141,- Yours of the 30th is just received; also the various enclosures. iKAIS K VtrW1Rtt I am telegraphingvim today as per enclosed copies. . The foreign arrangements must, of course, be submitted to the Governors at this meeting and I hope the program for handling the account as 1 roughly outlined it some months ago will also be submitted. About the 2,,; certificates of indebtedness, agree entirely with the attitude of the Board as to the way this matter was handled by the Secretary, but 1 think had I been there i might have recommended that no resolution be prepared, at any rate in exactly the form as finally drafted. ..Personally, I would like to have talked this over with EicAdoo to get his point of view before taking action. In the first place, he is wider great pressure and in the second Place I think he is not very well posted on transactions of this Character and possibly has not had time to get information from those who might be of assistance to him. The British Government borrows immense sums of money even In times of peace on short bills of various kinds. Sometimes these are placed in the market on tenders, in fact i VhilIK that is the usual procedure. Announce- ment is made by the Bank of England that they will receive tenders for so many millions at 30 days, so many at 90 days, so many at 6 months. Bids are made on the basis of a rate of discount and allotments are made by the england to the bidders, acdording to the rates bid.. rowing conducted by Bank of The other type of bor- the British Government is directly from the Bank of England. 2. April 4, 1917. To-* Ur. Curtis. This is an operation that is constantly taking place and instead of re.... quiring in each instance a protracted negotiation by custom the ,kwernmaat always pays the Bank of Isagland 1/2 of 1'4 less than tho bank's minimum discount rate. Our minimum aiscount rate is 4 our maximum Oa consequently our arrangement would be 1/2 of 1:i bolas the mean rate. The mean rate being as the rate for bills 3, would make the rate on those borrowings 2-l/2' I is uniform with all Aeserve banks, it would applyoxivally to each lender. I am writing 1.2r. Jay a letter on the subject of Government borrowings and enclose a snare copy of this paragraph of my letter to you which you might hand him. The real complaint which can be made about the Secretary's course is net so much the rate, which was 1/2 of 14 too low, but rather the fact 411. that he went ahoad and established a rate and fixed the terms without con- sulting the lenders at all. This should not be allowed to haupen again. ( Now as to mg separate telegram addressed to you at ;.ashine,ton about foreign negotiations, I do not like to butt in on the Dreasury Departments plans, portioularly when it involves what might appear to be an egotistical assumotion of the ability to do something which licAdoo may not be ready to accept. The fact is, however, that Iry ,ping to London. and Paris just when I did a year ago - that is during the pressure at Verdun - at a time when things really looked very black, and proposing financial arrangements to the Bank of Enaland and the Bark of France, as well as the part which by chance I was obis to take in the Rsglish-Prench negotiations here when Lord Reading came over, would I believe give me a splendid opportunity to do some good work over there on the most fsvored nation basis. You can imagine how keen I am 3. April 4, 1917. To - Mr. Curtis. to get at it, Particularly as all of these international loans in which our government is interested Should be handled, so far as banking arrangements are concerned, through the Bank of England and the Bank of Prance abroad pnd the Federal Reserve Banks in this country. some suegestion along this line had not I was rather disapnointed that been made in connection with the Danish transaction, where we could have been of servide I think. I am writing confidentially to Fred Delano on this subject, but to no one else. it. If you can get something started. I would greatly appreciate 3o far as health is concerned, the trip would do me good rather than harm and Dr. Sewall would certainly not object. All of these recent developments emphasize the necessity for con.. eluding our gold arrangements with the Treasury and the sooner, the better. Many thanks for your letter. Please keen me posted. Faithfully yours, J. P. Curtis, Esq., Federal Reserve Sank, New York City. BS/CC VcAL Denver, Colorado, April 4, 1917. I conratulate Iarburg Thank you for your note and the clipping. upon his broadminded attitude in arranging for the appointment of the Bank of England and the Bank of rance as our correspondents. I am glad to hoar that they are after Buchanan et al, but do not recall that we had any signed Minutes you refer to the bearing on Very sincerely J. V. Curtis, Esq., Federal Reserve Bank, BS/CC Possibly docrimpnt in Which they charged us with all sorts of outrageous things. I will be ,lad to hear how New York City. the matter. the matter turns out. yours, Denver, Colorado, April 6, 1917. iy dear Judge: Just a line to exchange mutual felicitations and congratulations ,hat the time has at last arrived Where you and I can both look a German in the eye and call him a savage. I suppose your blood is at fever heat and that you are expecting to go off in an aeroplane or with a mosquito fleet, or something of that sort, but, frankly, you have no right to do it, when there are millions of young fellows without families, who have no obligations of the character you have to disolinarge in the line of your present work. Ben is with his regiment at Trenton for the moment, but will probably be shipped off somewhere before ver7 long. Delano, asking him to investigate what is I have written Fred necessary to be done to have him transferred to some special training corps so as to get a commission. He is bright and capable and aould make a good Lieutenant. any suggestions. I would Guard about E and besides that has like to hear them. Ben enlisted in the National year ago and has had that much training with his Company taken the military course at Princeton. should be Isn't it ridiaulous, inconsistent and intolerable that I fooling my time away out here, olaying golf Ben is training to get himself in and going to pink shape to get shot. teas, when I am well enough to go home and should be home, and the only thing that has restrained me so far has been the fear that you and the others will get up on your hind legs and bark at me until I was shamed into a condition of complete irresponsibility, but you are going to see me back before very long, unless 2. April 6, 1917. To - Mr. Curtis. I am mistaken. I hope you understood my telegram to Washington. It aould be a calamity if some political commission was sent to Europe just now to loo u aftor financial arrangements over there, when it ought to be done, at least to a large extent, through the _Reserve BanMI System. Those people over there after the Anglo-French loan negotiations, and largely as a result of my trip, are all very warm friends of mine and I certainly don't want to miss the opportunity of availinb of the relationship. This is the time for us to get in some grand licks in the matter of our organization and I hope you do it soon. Best regards to you all. Faithfully yours, J. F. Curtis, Esq., Federal Reserve Bank, New York City, N. Y. 411 BS/CC Denver, Colorado, April 9, 1917. Dear Mr. Curtis: Yours of the 3d, enclosing copy of the letter sent to the Banco de la Nacion Argentina, is just received. of the letter to make nor, in I have no criticism fact, does paragraph 4 appear particu- larly dangerous as to the interests of the member banks, so long as we don't act under it. buy bills or we are not going to. As i wrote Warburg, we are either _ If we buy them, we compete with our members; if we don't buy them, we don't compete. Business is now moving smoothly down there and rates are i understand fair and this paragraph 4 would doubtless be construed as being for use only in emergency or When rates and conditions made it difficult for our member banks to handle the business. The President's message was certainly a corker. I only wish we had started our work of preparation earlier because I believe from all . hear out here that there is no possibility of our giving any military assistance to the allies in less than a year. On the o President's patience during the past two years has not put him in an unasailable position and the best evidence of this is the freedom with which Congress is granting him extraordinary powers. I sent a brief cable to Cunliffe and Pallain, with greetings, just as soon as Congress passed the joint resolution, and their replies are as follows: 2. To April 9, 1917. iJr. Curtis. "Warmest thanks and a hearty welcome to our splendid new ally (Sg.) Ounliffe." whose cooperation !nsans much to us. "Profondement Touche de votre message mous ezprime notre joie de voir L'unatie seculaire qui lie les etatsunis et la france aboutir a une c000sration devant assurer le triomphe de notro commun ideal de justice et de liberte stop. Veuiliez croire a men ,ien cordial attachment et aux voeus sinceres que je forme (Bg.) Georges Pallain". pour vous. Best regards. Faithfully yours, J. F. Curtis. Esq., ?sclera! Resofve New York City. BS/CC Denver, Colorado, April 9, 1917. Dear Judge: Thank you for your telegram from Uashington and for having a word with Secretary McAdoo on the subject of my wire. About a bond issue of possibly several billions, Mr. Jay spoke of a possible bond issue when he telephoned me the other night, but I did not gather from what he said that it would be of any such proportions. But the letter I sent him was very hastily written and in view of your telegram, should be revised. If Secretary McAdoo contemplates a bond issue of some billions, I hope that he and his associates will realize that there will be a good many difficulties to overcome in handling such a loan at anything like the rates of interest which have heretofore Prevailed on our Government loans and, particularly, the absence of the patriotic enthusiasm throughout the country generally, which has made it possible for England and France to place huge loans during the past two years. I feel very strongly that the cost of this war should be largely paid out of taxes and as such taxes cannot be collected under a period of some months or a year, that a considerable part of the borrowing should in the meantime be in the form of short notes of the Government, to be paid off out of taxes as collected. of finance. That I think should be the general scheme The country is rich enough to pay a considerable part, if not all, of our participation in the war out of taxes and avoid piling up a big funded debt, except to the extent that we lend money to our allies. 2. April 9, 1917. To - Lir. Curtis. As to such bonds as are issued, 1107 idea is that they should be generally of the following character: They should not from the surtax. be exempt from income tax, or at any rate Issues of Government bonds that are free of taxation have the effect of creating a preferred class of wealthy people who escape the payment of taxation and besides that it puts the Government in position of entering into obligations with its bond holders, to violate Which would be no less than repudiation. England has avoided this mistake and France has likewise, to a great extent. We should pay the higher rate of interest and collect income tax on bonds. suppose our friends at Washington will I do not agree to this. Bonds issues should be convertible into subsequent issues, Which might be made at higher rates of interest. They should have either early maturity, say five or ten 3ars, or possibly a somewhat longer maturity, the Government reserving the right to redeem them at par at the end of five or ten years. There should be no currency privilege attached to the Janda. Sinking fund provisions for new issues, as well as for those now outstanding, should be incorporated in the statute authorizing bond issues at this time, and my idea would be to have the sinking dund ap- plied to making purchases of bonds in the open market, rather than towards redeeming them at par by drawings. The rate of interest will, of course, depend upon the 3. To - Mr. Curtis. April 9, 1917. length of time the bonds have to run and Whether they are to be tax exempt or not. Of course, 3-1/2;. is the lowest possible rate at which a tax exempt bond could be sold and when one considers the sale of some billions, it would be out of the question to market them at any such rate, in my opinion. England made a bond issues in fixing too low a rate of interest. issue a bond at first serious mistake in her Our Government should par, fixing an interest rate Which will result in the bonds commanding a premium at once. Subsequent financing will then be made much easier, and ever-' experienced bond man will agree as to the wisdom of insuring the premium on an issue with the optimism and en- thusiasm that goes with it. Something, it seems So much for the terms of the bonds. should be done to take care of the old 2's. 3-1/2%, or possibly in time a unfortunate to have the think that the 0, to me, If the Government issues a bond for war purposes, it will be most 2's decline to corresponding levels and I National Banks should be given the privilege of exchanging the 2's Which carry the currency provision for the new bonds without the currency provision, under some restriction Which will not effect a contraction of bank note currency too rapidly. This would not be difficult to bring about and in justice to the National banks should be done. I am also of the opinion that the position of the Reserve banks as purchasers of large amounts of the 2's for conversion, should also be carefully safe-guarded. It would be a great deal better for the country, as a whole, if these matters are dealt with promptly and in a broad-minded way, than to have a lot of patch-work applied as we go along. as well as the National Banks, should be absolutely The Reserve banks, protected against loss 4. April 9, 1917. To - Mr. Curtis. through a possible decline in Government bonds. When it comes to marketing an issue of some billions, if the loan is to be successful it must be handled with a great deal of skill and must be preceded by an educational campaign of huge proportions. Other- wise, I would expect to see the loan fail just thvouda inertia and indifference on the part of people generally Who have no such enthusiasm as will be stirred up if there is actnnl fighting going on in the country or on our border. Assuming that an attractive it should be possible to organize the if necessary, with interest country into twelve districts, more a view to having subscriptions made through the National, State and Private bankers and bond houses, through Post Offices and Sub-Treasuries. rate is authorized, the Federal Reserve Banks, To stir up the necessar; enthusiasm and educate the public, I should think that all of the responsible bond houses of the country should be organized to conduct a campaign. r--- should be purchased by vestors can investors and not by the banks. be made accessible to These bonds And if private in- the Government through the data, invest- ment lists, etc., of the bond houses, it might be well to suggest the development of an organization through the various Federal Reserve districts. formation of committees in the This selling organisation in each district would, of course, Pe expected to tabulate all the insurance com- panies, trust companies, savings banks and similar institutions, with a view, if possible, to making preliminary sales in large blocks; that is the best advertising of a bond issue that can be made. The proceeds of the offering of a large bond issue could not be paid into the Government or to the Reserve Banks, without great disturbance to 5. e - Mr. April 9, 1917. Curtis. money conditions, unless distributed over quite a period. The way to handle that is not simply by having the subscriptions payable in installments, but by deferring the nayment for as long a period as possible. Meantime the Government of which correspond pauable. borrowing money on short notes, the maturities with the dates on which the bond subscriptions are In that way, one hand will wash the other and disturbance to the money market is avoided. Of course the proceeds should be paid to the Federal Reserve Banks end it would be desirable, if possible, to have the payments made through the member banks principally, as the Reserve banks could then finance such payments by discounting paper, if needed. Having subscriptionsand payments handled throughout t'le country by districts would result in a minimum disturbance, Distsict and be available each Federal Reserve until checked out by the exercise to the banks of that district Government and, of course, the Government would care to see that funds were disbursed, because the proceeds would stay within to as great It seems to' me highly in the respective Federal Reserve Districts extent as possible, in important that the proceeds of any loans made to the allied powers should be handled through the with our arrangements so nearly completed with should be no Bank of France, there ment in arranging Reserve banks. the Bank of Lngland that a foreign loan should be handled and the in that nay. the only safe way in which huge Government loans can be placed in this country market, Surely, hesitation on the part of the Govern- I am strongly of the opinion that to the money those distructs. just now, without disturbance will be by the temporary use of short borrowings, to which I have referred above. 3, 6, 9 & 12 months' bills should be authorized 6. April 9, 1917. To - Mr. Curtiss, and sold from day to day as the Government needs money. They can then be -.laid off out of taxes Alen they _come in and out of the proceeds of sales of long time bonds when made, and the adjustment becomes very largely one of bookkeeping. I do hope McAdoo realizes this because failure to regard this point as of controlling importance might result i such serious money disturbances as to defeat the whole financial program. will be glad to have any about this matter. further particulars Meantime, hope the above rough suggestions may some points of interest. Very F Curtis, Fee., Federal Reserve Bank, New York City. BS/6C N. that you can get sincerely yours, present Denver, Colorado, April 10, 1917. Dear Judge: Your letter from 1718 H. Street has just come and I have read it with deep interest. I am glad you had opportunity to convey my message to McAdoo, as I feel so thoroughly helpless just now that I look on myself as a slacker. About the big bond issue I will make the following comments on your remarks aria the memorandum you send: It would be a fatal mistake to invite tenders for such an issue of bonds. The Government should fix the rate and make it sufficiently at- tractive so that the issue would be over subscribed at once and sell at-a the lists were closed. The experience abroad should be sufficient to demonstrate this, particularly in England. ,remium before is the very lowest ratecould be at Which the bonds 3-1/2 placed and I have some doubt of a ver7 large issue goiug at that rate. Certainly it would not if the war situation and enthusiasm were allowed to cool. Possible We belong to that class of stupid nations that require education by expensive experience before learning and, if so, the people on Capitol Hill have the power to indulge themselves in that luxury. agree that 500,000,000 a)uld be sold at 3-1/2, possibly even a billion, but much beyond that I think very doubtful. It would be a fatal blunder to accumulate Government loan like this in depositaries in the proceeds of a huge advance of disbursement. Of 2. Amril 10, 1917. To - Mr. Curtis. course the turn over will be immense any way and, if the Reserve banks are the only direct fiscal agents of the Government, they will need to exercise a good deal of skill and should have wide discretion in appointing sub-depositaries. The employment of Short loans, as the British Govern- ment has done, is a skillful way of handling such transactions because it contraction. mitigates the evil of expansion and With some reservations, I ah deposits of the proceeds to the extent members of the Federal Reserve System. inclined to the view that special necessary should only be made with I have hesitated to say this posi- tively because we are in a national emergency where discrimination of that sort should be avoided but, Government funds with time of war. State after all a l;tderal law autherizing deposits of banks is a pretty radical proposal, even in Possibly the best plan would be to have either the Reserve banks or the Secretary of the Treasury in position to exercise discretion in that matter, as it seems Impossible to forecast what the requirements of the situation miijit be from time to time. A memorandum of Mr. Kenzel's report on ineuiries among certain bankers indicated to me. that the selection of those of Whom inquiry was made had been rather hastily tions Which 1 considered. I have sent Mr. Ja.y some sugges- hone he will regard and possibly these imiuiries mi-tt be made very quietly through Important member banks in the other large cities of the State. I sympathize with McAdoo's difficulties as to the But certainly we should have no difficulty in getting any desires from New York bankers, including Jack Morgans. money trust, etc. opinions that he a. To - Mx. Curtis. O. April 10, 1917. I am personally strongly of the view that the cost of the war should be paid largely out of taxes, but I think these taxes should be equitably distributed and am delighted to observe that ILICAdoo's mind is running toward a considerable reduction of the exemption figure in the income tax. 7. McAdoo is absolutely right in stating that this is going to be a difficult and delicate situation to handle. I do hope that political considerations are eliminated and sound business judgment is used to decourse termine that thOccet shall be. Most important of all, the first loan must be a suecess. As to personal mttters. little cold during the I au getting along ell right, except for a last fey, days and I am no more restless than the situation and my own circumstances justify. Of course I want to see Ben who is with his segiment, but for the present at any rate have abandoned any thought of returning before June and even then I exnect to give you a splendid exhibition of shirking the heavy work. About your own plans. It is so exceedingly important that the bank should not be crippled that I do hone you are not tempted into soLle war acti- vities, which would really be of less importance to the country than your work at the bank. If we can see our part of the job successful* conductod, our consciences will be satisfied, even though there will be no spectacular stuff about it and no glory. Besides that, you and I are too old for military duty end we should admit it. Many thanks for your letter Sincerely yours, Y. Curtis, Esq., Pederal Reserve Bank, New York City. J and for all the news. Denver, Colorado, April 16, 1917. Dear Judge: I have yours of the 9th, enclosing copy of your letter to Secretary McAdoo, which strikes me as excellent. My view about tqlaltion on Government bonds you understand and, frankly, I do not think the gentlemen wia.: attended that meeting have thought enough about it or investigated the subject thoroughly enough to see the force of my own position, which really is unanswerable in the case of a country like Eagland or France. Commenting by paragraphs: Just about my views, except for taxation. I thoroughly agree. Ditto. Ditto. Ditto. Ditto. With this paragraph I do not agree. at one stroke is too heavy. A billion dollar transfer I am enclosing copy of a letter just written to Aiken at his request which refers to this matter and I will not repeat. See also Aiken's letter. You will observe that on the whole and with the exceptions stated, we are in almost absolute agreement. In handling this matter I suggest correspondence, etc., be entirely in one man's hands. It seems to be yours at the moment and I hope you con- tinue to look after it. Many thanks for keeping me posted. Very sincerely yours, J. F. Curtis, Esq., Federal Reserve Bank, New York City. Dnver, Colorado, April 16, 191Y. Dear Judge: I am grateful to you for your nice, long, personal letter of the 12th. The book "The Fireecial Administration of Great Britain" has reached me and I have just started reading it. Will write you later of any im- pressions I gather and sand a copy to Jerome Greene, I suggest your urging Jay to see that Ex. Schiff is consulted in these Government bond matters. It will come back from Jashington, of course, through Warburg if he is not and it is important that his views be obtained. I don't agree with you about only subsequent purchases of 3's by Reserve banks being convertible. logical as to but don't both At first glance that would see Reserve banks and National banks that hold the 2's, forget that the most important consideration to the Government during war times is to preserve unimpaired the economic strength of the country, because the country's business pays the taxes going normally and without shock, at any cost. and it must be kept The ownership of over $700,000,000 of P's by the National banks is a menace to the economic stability of the Government if by chance their value should be reduced comearably to the reduction in the value of British consols. I think that within reasonable limits the Therefore, National banks should be protected. About the Vanderlip dinner - I would like to have seen the Reserve bank move first in that matter, particularly as it was our own suggestion, made over a year ago, to have those meetings with the Clearing House. hope it is arranged to have them at our own office. hope, realize that a bank like ours I Mr. Saunders will, I cannot be run from Washington. 2/ To - Mr. Curtis. April 16, 1917. My letter to Aiken covers the ground about this matter of depositing money with State banks. 50 years in order to get It is a close point and we must go back over banks precedent for Government deposits with State and then, if you investigate the record of those days, you will find it filled with some of the most scandalous chanters in the Government's finan- cial history. I wrote Mr. Treman some time ago about bills bearing German names, particularly South American. That is a good subject to put in the hands of our new Credit man for investigation. As to the duration of the war, tell Dr. Carrel to stick to his last; the war will be over this year unless I am mistaken very greatly in my estimate of German canacity to see the hand writing on the wall. The only possibility of its lasting two or three years longer is as a result of Russia making a separate peace, which would be a disaster. 1 hope you don't enlist, or to put it differently - that you are not allowed to enlist and for the latter hone I rely partly upon Laura and partly upon the enlightened common sense of the rely upon you with Government. I wish I could equal assurance, but you are a bloodthirsty chap and I know hanker to kill some Germans. Glad to hear the drills, etc., are working all right. 1 suggest that our organization be built up now rather than later when pressure is on. AeA. the boys to consider what shape we are in to handle 4500,000 or 41,000,000 subscription to a bond issue, in case we should be asked to do so. April 16, 1917. To - Mr. Curtis. am still hanging on here by mu eye-lids. Have just returned from a four or five days' outing with some friends and devote today to cleaning up accumulated mails. Faithfully yours, J. F. Curtis, Esq., Federal Reserve Bank, New York: City. BS/CC Denver, Colorado, April 17, 1917. Dear Ur. Curtis: Thank you for yours or the 12th, with various enclosures. In order to preserve a good chronological record of the various steps of our Aiglish arrangement, I suggest that Miss Par12r be cmked to Prepare a file of various letter and memoranda, to be bound up carefully and put in the archives. Of course I shall return to New York to see Lord C/2nliffe he is in this country and await word as to his plans before making my own. In reading over the .'ress statenent, 1 am strUke with the fact that it appears to be e bit cold. Possibly that cannet be avoided without going into more detail than we feel justified In doint. I an sorry that it was not brought out a little more clearly that the negotiations for this arrangement wore undertaken a year ago, as the,t -eould help sot straight the unfOrtunate announcement about ñi1.ch we complained. Please koep me advised of Lord Cunliffe's nlans tnd mdvomente. Best regards. Faithfully yours, J. F. Curtis, Deg., Federal Reserve Bans:, New Yoric City. Denver, Colorado, April 18, 1917. Dear Judge: The enclosed correspondence and copy of my letter to Captain Logan all explain themselves. Will you do whatever the needful may be? Very sincerely yours, J. F. Curtis, Nsq.,'r Federal Reserve Bank, New York City, N. Y. Ns:\ 88/00 .DICS Denver, Colorado, April 22, 1917. Dear Judge: Thanks for yours of the 17th, enclosing copy of Minutes of the tenth Conference of Governors. Very sincerely yours, J. F. Curtis, Esq., Federal Reserve Bank, New York City. BS/CC U. J NIONTVIEW BOULEVARD DENVER, COLO. Denver, Colorado, May 18, 1917. CONFIDELITI AL. Dear Mr. Curtis: Enclosed is the statement handed to me by Mx. Seymour, out- lining the procedure which has been devised for supervising foreign exchange transactions in London. I have read this carefully and suggest now that you add it to the file of papers on this subject, making sure that it is not accessible in the office, as it was handed to me in great confidence. The memorandum I left with you covers all the suggestions that occurred to me at the time and I now further suggest that you keep posted on the progress of the legislation in Washington relating to this matter. Meantime communicate with Er. Prank Polk of the State Department to ascertain their wishes, etc. There is no doubt of the advisability of starting something as soon as possible. It should center in New York and be under the super- vision of the Reserve Bank. Very sincerely yours, J. F. Curtis, Esq., Federal Reserve Bank, New York City. BS/CC Bac. oatfa, 9ixt."1.5 /r tr it&c. Denver, Colorado, May 22, 1917. Lear Judge: I have been over the diagram of the Liberty Loan organization idth great interest and it looks to me very good indeed. So good in fact that the only suggestions I can make are of quite minor importance. Tor one thing, I see no provision for a woman's organization, no evidence of an official connection vitt the organization of the American Bankers Association, no provision for organizing children in the work of selling bonds, particularly school children, and What possibly is more important than any of these - no provision as to permanent organization, which would naturally come along later any way. shall be I am returning the chart as I returning myself in a few days and but forward these modest sug- aations for you and jr.L Jay to consider. Very sincerely yours, J. F. Curtis, Deg., Federal Reserve Bank, Nev York City. BS/CC Denver, Colorado, July 23, 1917. Dear Judge: Many thanks for yours n Dr. Pratt - possibly it was suppressed at the me. ico. am gr por legislat to send copi of the 16th. 00 telegram has , d and disappointed that this matter of .g trade with the enemy is not, appar- t should be. Light it not be dole if you please, or at my request, , in this matter to. Polk, tell them that you are submitiO.ng the mat or to rtments in the belief that it is of suffioi uportan. be a1t with in the pending bill introduced by 1,1r. Adamson, rn if they deem it desirable, I will be very glad to meet wi licAdoo, Dr. the departments-on my return east, ington on the 15th of August. as I oct to be in Wash- in the meantime the proposed amendment might be polished up by 1noluding any ideas that Jir.. Kent has. am enclosing a letter which might bO sent to Lord Oanliffe (first page to be re-written on the Bank letterhead). Please as7,z. Mr. Jaw and Lr. 2raman to show you my letters of today on other matters. A heavy mail today makes this brief. With my best to you all, Yours very truly, Denver, Colorado, July 26, 1917. age: Thank yet or yours of the 21st. I will start sitym- those letter at once and return them when finished. The Chang is all right approval in Whington and that sort of o&a1izod authority in the Federal 2opervo oral Reserve Banks I presume these matters must not require a ioi)t not be delayed by o Wy. business is done in the delay of constant Now York, action is require reference tu ld be i Be-aes that, it is a matter which 4b.ou1d be dealt with ur.der ti general authority ef the Secretary of the '2reasury rather tha thc e Board.. Best regards to you and many t r following up this matter. Sincerely yours, J. P. Curtis, Eng" Federal Resurve Bank, New York City. BIVCC Denver, Colorado, July 51, 1917. Dear Judge: - Thank you lo:c yours of the 27th. This reply may not reach Iderstand you aro headed for a holiday, which do1flt3 me exec) lgly. The only 'Iticism I have of the proposed amendment to will supervision of tanco. It io --lemy Bill" is the possibility that it d attempting too great a detailed h are being conducted at a dieto have the authority, but much depends the legislation g000 much red tape and regulati is exercied. After to maL pate altogether too k :actieal and simple, You ask' what I think of the war situ ion. T. me it looks very bad indeed. I 300 no hope of an concluzion of the war and a possibility of cone breakdown he meantime, and possibly before we are prepared to put our leight under the load. I wish our various complicatod organizations for conducting the war could be centralized, consolidated and more authority nut in one head man. -- Incidentally, it appears to me that all of the suggestions mhich-were .diseudsed at that meeting at ilagnolin are being gradu- ally Dutinto effect, with the exception of the International Council, Which to my mind io the most important of all. Best rehttp://fraser.stlouisfed.org/ gOeds to yen and Laura. Federal Reserve Bank of St. Louis November 1S, 1917. Mr. J. F. Curtis ';UNii DEA Federal Reserve Bunk rew York City. 'Jo., Dear Mr. Curtis: -. I have yours of the 7th enclosing Chan'I. Clark clippings and will shortly mail you copy of my reply to his letter, tofrether with his. Mich for the office news. Replying to yours of the 9th in regard to the foteign trade banks, my opinion is thtlt they should -,-be-gVen the rate established for the acoeptanees of mem71er banks, the reasons being as follows: First, they are, in fact, organized for the purrose of enabling member banks, through a separate corporation, to do a type of business coliewtively which they are not able to do individually and shou.10. not be discriminated against in rates. Second, there is no competitive situation to deal with referentially as between member and nonmember banks. Third, in general, they are established for the purpose of developing a business where favorable rates should be a part of the plan of,encouragoment. Contr1;;-, Fourth, their timulremette with the restric- tions imposed by the Reserve Board should be considered as equivalent to membership. Er. J. P. Curtis I told Mr. Xonzel that that was in general my view and asked him to have the question submitted through you to the Committee or the Board. and I hope very mAch that the Board will accept this view, making It apply to the Mercantile Bank, the American Foreign Banking Cor,)eration and the International Banking Corporation. AsILso suggest to our Board that if we 00 not favor those institutions with the best rate they will be at a disadvantage in competing with foreign banks which have agencies in Lew York. au hupIng to see you and the family down hol.o Lot me know what the prospect 113* With best regards, Vory sincerely. yours Woods Hole, Mase., August 12, 1918. Dear Jim: I was glad to gat yours of the 9th. to get anything like a decent report from you, I wen It took three telegrame or Jay, or anybody and in a great rage about it until your letter oasts. Of course it soldier idea. it+ perfectly obvious that there is nothing in the It is also perfectly obvious that there is nothing serious the matter with you, and equally obvious that what you need is just what the doctor orders, 66M8 rest and recreation and fresh air. will try and run up to Manchester while you are tners, but to had to abandon the trip with Charley Norton because I have too much do here. I do not believe that Mr. Beyer would fill the bill in Mr. Grey's plane. Mae it occurred to you that with Warburg's leaving the Federal Reserve Board Chapman may be releared, and, if so, we might find for him? I am writing a place Warburg about it. I do hope that pressure is regularly exerted to get that pace, otherwise we are in a bad hole. ei_-te take care of yourself and don't worry about the office. With best regards, Sincerely, James F. Curtiogsq., rsarerwrtilrr, ass. BS.MSB September 5, 1918. Dear Jim: --- I wrote Laura from Woods Hole a couple of days ago, explaining that I had been obliged to make an unexpected trip to 'Washington after returning almost to Woods Hole, that is as far as Boston, which made it impossible for me to got up to Mandhester as I had hoped to do. Unfortunately her letter was delayed in reaching me, which accounts for the delay in my reply. Now I have yours of the 25th and really feel very sorry indeed that I coed:sot hive a visit, because I fear from your letter that you are a bit blue and not feeling very well. That won't do: There is nothing to be blue about. Certainly you have no such excuse for the blues as I have on the score of health, and your job is to loaf about until you are feeling fit enough to come down here and spell me a bit. This morning I am back on the job, as are most of the others at the bank, Treman being the only one away, so don't you worry about the ihop, but submit to reasonable regulations of an affectionate family who are simply doing what we all want thrall) do -- putting you back on your feet. Many of the problems that have been troubling us in connection with the loan, etc., are grad:sally working out and think I begin to see daylight. The only real difficult job seems to be to convince the New York bankers that there is always going to be enough money to go 'round. They have chronic attacks of "cold feet" but the new arrangement of the money pool, I hope, will serve as a hot water bag. Please give my love to Laura, and my best to you. Faithfully yours, James F. Ourtis, Esq.. Massachusetts. September 6, 1918. Dear Jim: This is my first onance to tell you a bit of What's doing at the bank, without any desire, however, to suggest your returning, or any thought of it, but rather to let you know that we are getting along all right, but, nevertheless, miss you from the daily councils. The wind up of my holiday was disturbed, as I wrote you, by an unexpected trip to Waehington, but I have been on the job since Tuesday and find things movinn: along pretty well. Treman is here; Jay is spending two or three days in Washington; and Case went off last night for his vacation. Otherwise the force is fairly intact. The Liberty Loan Organization is well ahead on its work save in one or two particulars, such, for instance, as this wretched part-payment plan. We have worked out a temporary solution for this loan which our friends of the War Savings Organization feel is something in the nature of sticking the knife into their corpse, the death blow having been inflicted at th time of the Third Loan. I have a telegram from Vaederlip to-day, however, which announces the intention of the Treasurer to bring the nar Savings Organization under the general direction of the eederal :Reserve Bank, and asking me to take the matter ur with their committeemen at once. 'needless to say we will de it. I only wish we had room in which to put them. You will rejoice at the announcement which will appear in the morning paters to the effect that the Loney Jommittee proposes to take a rather absolute and arbitrary control of stock exchange loans. We expect to get reports of borrowings by all stock exchange houses daily and when they indicate a tendency to borrow toe much, simply tell them to atop and Abut down on them. One must deal with the devil with his own weapons, and these Prussian methods are only excusable on that ground. Zeantime I hear in the club up-town that there are more than a fow people in this neighborhood who think we are boesinn the job rather vigorously. ay last letter from Ben was e brief note expressing his trepidation on the eve of examinations fir a commission. I have entire confidence that he will pass all right. Our loans lately have been bouncing up and down, with fluctuations of 70,0e0,000 or more, and, in that connection, we have about concluded arrangements with the sixty-eight faithful banks permitting the Money Committee to control roughly :1,600,Cone,Jnn of *their stock sic:henna loans. I have forsaken golf for tennis recently, agrees-a letter better with a violent disposition. finding that the latter Mr. Curtis 9/6/18. Please give my love to Laura, and my best to your good self. Don't forget that rest makes people well and after that exercise makes them strong. Your job just now is to rest. Ancerely. James 4:nester, was. ,43$/Za33 September 18, 1918. Dear Jim: I have not written you, not wanting to turn your thoughts in the direction of the bank, but it seems as though you would certainly be interested in the enclosed copy of a letter to Judge Ingram and the resolution of our Board regarding the selective draft, also the enclosed communication which I am addressing to all men liable to military service. All of the material was rather hastily prepared as we learned only the day before the registration was to be made that one of the questions on the registration card had material bearing upon subsequent exemption procedure. We have decided that it is necessary, for the benefit of the organization, to tae matters pretty generally into our own hands and decide which men should and which should not claim exemption. I sincerely hope that you agree with the general tenor of the papers enclosed. We are busy, but I think comparison with previous loans. very well ahead of the program in The vacation schedule is pretty well completed and I think all will be back at the bank by the end of this week or next week, so don't worry about your own absence. If you come down to Glen Cove, I am going to insist that you stay there and do not permit yourself to be drawn into the machine until I have had a talk with you myself, and, if necessary, with your advisors, medical and otherwise. Above all things, don't get restless. We are all keen to see you at your best and at the bank, but not too soon. the first of Sincerely, James F. Curtis, Esq., Manchester, Mass. BS/M3B Enos. September 18, 1918. :Year Laura: Pardon a dictated note to send you the enclosed If you think it is all, right to pass addressed to Jim. on to him, please do so. Sincerely, Mrs. James F. Curtis, Glen CoVe, Doug Island. BS/USB Enc. October 11, 1918. ,Qar Jim: Thanks for your letter of Saturday, which I really answered in person. You hqve been advised of the action of the Board, and now I insist that you accept the decision of the Board cheerfully and make it your business to get well. I have been through this, and worse, and I um sure that you can do it. Sincerely, Jam21.4.4aurti4,,,,g#4**, Glen Gove, Long Island, Y. BSPISB aila-441 Fliali4(1 Van. Lake George, N. Y., February 3, 1919. aaar It was very quiet after you and Laura and the rest of the party left, but, as I wrote I have your illtrbrtire'Skt_Januari 23rd and 27th. Laura, I spent a !seek up at Schroon Lake ice fishing with some friends and managed to have a pretty good time. I gather from What Laura said that Mrs. Jay was greatly concerned about Pierre's health. Treman has talked with her and has written me quite fully. Won't you make it your duty to watch him and see that we don't add another to our list If there is any danger I am coming back. of cripsples? About the proposed pamphlet - in a word my idea was to publish a digest of the various circulare, regulations, etc., relating to transactions with the reserve bank as fiscal agent of the Government as a guide both to member banks and to -the public. It is a very simple thing to prepare because the instructions would relate particularly to qualifying as Government depositaries, handling certificates of indebtedness, handling Government bonds and coupons, making transfers, interchanges, etc., etc. all specifically laid out and would principally consist of a digest in plain language of Treasury Department circulars and of our oan. Just now these various instructions are covered by a multitude of circulars and amended circulars ahich have become so voluminous and complicated that find it necessary frequently to write and make inquiry institutions although the information is in their hands already. I am enclosing a check for $277; $40 covering my °hare of the ilowers sent to Dorothy Straight and $237 being the additional in awatment I Mr. Curtis Sheet No. 2 2.3.19. .V(1 nr.7,1AN am making in George Marvin, without hope of financia4:phys4ca; ar moral I :1) return thereon. nalE.111,Prr'rnIrn-1",,,a, The skating continues fine and I am keeping at it overyEaay. My best to n11 at the office. Sincerely yours, I. F. Curtis, ltsq., Deputy Governor, Federal Reserve Bank of Ner York, 15 Nassau Street, New York. BS.MSB DZP71. i.:21] -LAI, 11 PrzrnTre, eee, Dear I have yours of the fifth, difficult Propositions, namely p- which calls for a reply as to two very Anderson and Williams. As to the first - I am not sure he needs petting on the back. Lake George, N. Y., February 7, 1919. that I -agree with your suggestion that The suggestion was natural enough because I guess you are unfamiliar with a lot that has preceded the present written Arthur that I would expect to see him on the situation. I have fourteenth When I come down. The fact is that some months ago I had this Whole thing out with him and with his nartners. The situation res fully explained to all of them, and particularly Lamont, and all made it just as difficult as possible for us to arrangement with Anderson. to continue the But, nevertheless, we did continue it, with a understanding all 'round of the importance of his remaining on the job. thorough ithin a few weeks Lamont calmly goes abroad, taking with himAnderson's assistant and throwing the Whole situation into ihowing us more confusion. Primarily, I blame Lamont for not consideration, vhich he could have done by chasing another tary for his work abroad rather than secre- George Whitney, but I also blame Anderson because if he asserted himself as much with his people at 23 Tall Street as he does with us, Lamont, I have no doubt, could have been arrangement than to take Anderson's My first impulse, right hand on hearing of man away at beut some of these things as a than by dorrespondence. other this time. all this from Anderson, was to go right to New York end try and get Sweezy to take the job. I wrote him that I would talk it induced to make some over on the On further consideration, fourteenth. He is as pig-headed mule and I would rather tackle him face to face Ur. Curtis 2.7.19. I think you will find he has had a very frank talk with Mrs. Pratt about his rork in the organization, and she writes me that he invited himself to dinner with the family one night and, after44746,ntea 44iii.scussion, he seemed to be satisfied to go ahead and do the best he could. It is just as well right now to say nothingriber about it, i believe, until I get down. You little know the ;MOi'int4f-176dav4ImMnt arid difficulty have had between various members of that head-strong bunch. About Tilliems r I am in much doubt. Your own suggestion I don't believe is a good one should it come as a voluntary contribution to the discussion. On the other hand, if Senator Weeks bill to abolish the Comptroller' e Office revehes the point 'here the Senate Committee has a hearing, then it could be easily arraneed to get e unanimous expreesion from the governors of the reserve bunks. You see, the reeson Why volunteering an opinion would be of no value is because VAlliaes :.oliiiinstantly say in reply that the reserve banks were attempting to grasp too much power, even the power now exercised by the Comptroller, and that pretty soon they would be running the Whole Treasury. I have thought, and have recently written Jay suggesting Whether it might not be a good plan for ma to write Carter Glees a personal End thoroughly frank letter on this subject. Still another method would be to hav a grout of bankers Whose character and pesition eould insure their being beyond reproach as to motive, to ask all of the banks of the country for a °referendum vote. The devil of it is that nllimes will make it a persona] metter. It should not be approeched on that ground at ell, but that ground cannot be escaped on account of his personality. Very forceful arguments could be advanced for do- ing away with the Cometroller's Office and if be were a big enough man he would advance them himself end be the strongest advocate of doing so. I have never been able to understand why the Federal Reserve Board hasn't done something about this matter. be at it. They are the ones to do it, end should Mr. Curtis 2. 7. 19. 44)7, I guess I'm getting old - At any rate i've lost my4sire to fight , 11; with that fellow such as I had in the earlier days. -1.1Z 240_ Talk it over with Jay and 13t me know how he feels. Faithfully yours, J. F. Curtis, Oss., Deputy Governor, Federal Reserve Bank of Nov York, 15 Nassau Street, New York. BS.VSB PTf i4INC :,-1) Lake George, N. Y., February 8, 1919. FEDERAL RE5EriVE 1.77:_nK Dear Jim: I have just read in the newspapers that reeks is pressing his bill to abolish the Comptroller's Office and expects to have some hearings. only way in which the The reserve banks can appear safely in the matter would be to have the committee call upon the governors for expressions of their views. know weeks, matter. but I don't see Why I should be made the victim or cat's paw in the Furthermore, I think Weeks is making a serious blunder in attacking the subject on the two grounds which he has announced; one the abolishment disqualification of duplication of function; and the other the temperamental of the present incumbent. He had better leave the latter alone, for he get licked on it. 'ere I asked for a frank opinion about the rill Comptroller, a veil-balanced, judicial reply would necessitate my saying in brief that he is an honest, conscientious and energetic men, and has been the victim of a lot of rather unintelligent and spiteful criticism; that he really desires, and has sought in his own' way to establish better banking methods. On the other hand, that temnerementelly he is led to employ arbitrary, and in some cases, abusive methods Which have led to a great personal dislike and the part of the banks, and that The mere fact that you antagonism on there has been much fault on both sides. and I differ rith i11iams in many of his theories of banking and in the conduct of his office is no justification for claiming that he should not be reapPointed. Hs has done some highly emotional and passionate things, but I believe it would be difficult to Prove disqualification in an atmosoherethat is so surcharged with personal animosities. They are his protection. If I ere Senator Weeks, I rould base the rhole procedure upon the Mr. Curtis theory that the establishment 2.8.19. of the Federal Reserve System resulted in a lot of unnecessary duplications Vhich can now be eliminatei.,because established and in competent hands. The four great the system is vol duplaiithie Check Collection Clearing Houses The Subtreasury System eforred to are' 1,1) The Comptroller's Functions as Ciiiiii4144rmit the currency and supervisor of banking. IF.hy not lump the Whole thing together, and appeal to Congress on the sound safe ground of eliminating duplication and expense! and Upon that ground appeal can be made to the bankers of the country for support and all personalities can I think reeks is avoided. rather stupid in his program. I wish you would talk over with Jay the possible advisability of a discussion of this matter with Glees. Faithfully yours, J. T. Curtis, Deputy Governor, Federal Reserve sank of New York, 15 Nassau Street, New York. ES.VSB Dictated but not reed. be ,417;ou, k Dt Lake George, N. Y., February 17, 1919. RESERVE, Deer Judge: Y.:Menke for yours of the twenty ourth, regarding real estate and tenents. After discussing matters with Vr. Trowbridge, I em dispesed to push the building program someWhat, and think re should get to work on the-tenents pretty soon. I En disturbed hbout the uncertainties as to the Ely title. Does that mean e long drawn out procedure to quiet the title! rr. Trowbridge has sug- gested that if the title difficulty is to indefinitely postpone our accluisition of the 131y title, word to that effect should be conveyed indirectly (so that it would not be known as coming from us) to Cohen and his associates. It would make him pretty tired to get hung up on a high price with the end piece if A defective title intervenes between him and us, so that it makes it impossible for us.to.buy him out. There ie an old saying about being hoisted by your on petard, that might apply. In my opinion, Cohen is bound to lose money on his purchase, unleee we 1111116$ see him out, because he has purchased real estate, undoubtedly at such a price that it can not be made to nay without modern improvements, etc., and he heen' %Pk enough land to put up a big building. Your very formal letter to the other governors may, as you say, arouse the ire of the Federal Reserve Board. l'hy didn't you just drop them a poreonal note, asking if they would stay over 4 day or trp for some semi-social, semibusiners diecussiont James F. Curtis, '7n., (Pr'r1e)r Faithfully yours, ernl Reserve Bank, Lake George, March 1, 1919. Y., Dear Jim: have your note of the trenty7seventh, and am enclosing my check for '449., covering my share of the expense of the dinner in honor of the Secretary. after my end of it. Thanks for looking Faithfully yours, Deputy Governor, Federal Reserve Bank of tier York, 15 Nassau Street, Nev York. (signed in Mr. Strong's absence) VSB Tnc. - Check No. 1004 - 149.00 Misc. 4 '2fice Correspondence To FEDERAL RESERVE BANK OF NEW YORK Mr. Uurtis Date-J-Une _30, 1919. Subject' 1,113IN Benj, Strong IOM JUL I Your new partner spoke to me about a now in Joe Oottun's office, and Mr. Treman firsA4WgilliireRiii. BANK has just spoken to me of a Mr. Paine, of White and Case. Will you have a word with me about this at the opportunity? BS/MSB 1919 first December 10, 1919. Dear M, friend :,oberts -alter, of Mite (11.Fe, some time su6dest, 1 that your friend Freund, hho 11,as been acrkIng with the Railroe.d Administr4t.Lon, mijht be a likely ,artaar for a youn6 JAwrIr. I think I spoke to you about it, but he mentioned it ain tod y uld I Anted to make sure that I had not ovrlooked it, hence this n-,te. 1careLy, F. CuItii, i440, New lork City. Form 1207 CLASS OF SERVICE DESIRED Telegram e Letter .dight Message Night Letter Patrons should mark an X opposite the class of service desired; OTHERWISE THE MESSAGE WILL BE TRANSMITTED AS A FULL-RATE TELEGRAM WESTE70,41NA UNION AM TEL NEVVCOMEI CARLTON. PRESIDENT Time Filed pril 8, 1221 Mrs. James F. Curtis Street and No. Place Chock GEORGE W. E. ATKINS, FIRST VICE-PRESIDENT Send the following message, subject to the terms on back hereof, which are hereby agreed to To Receiver's No. - FLclyn, Long Island Dear Laura I am distressed about your loss and propose that we give a donatigin_p_rty gifts limited to solid silver and other articles attractive to burglars SENDER'S ADDRESS Digitized forFOR ANSWER FRASER Benj. Strong SENDER'S TELEPHONE NUMBER 19 lir ALL MESSAGES TAKEN BY THIS COMPANY ARE SUBJECT TO THE FOLLOWING TERMS: To guard against mistakes or delays, the sender of a message should order it REPEATED, that is, telegraphed back to the originating office for compart..., or this, one-half the unrepeated message rate is charged in addition. Unless otherwise indicated on its face, THIS IS AN UNREPEATED MESSAGE AND PAID FOR AS SUCH, in consideration whereof it is agreed between the sender of the message and this Company as follows: The Company shall not be liable for mistakes or delays in the transmission or delivery, or for non-delivery' of any UNREPEATED message, beyond the am'' received for sending the same; nor for mistakes or delays in the transmission or delivery, or for non-delivery, of any REPEATED message, beyond fifty times the sum rec._ fed for sending the same, unless specially valued; nor in any case for delays arising from unavoidable interruption in the working of its lines; nor for errors in cipher or obscure messages. In any event the Company shall not be liable for damages for any mistakes or delays in the transmission or delivery, or for the non-delivery, of this message whether caused by the negligence of its servants or otherwise, beyond the sum of FIFTY DOLLARS, at which amount this message is hereby valued, unless a greater value is stated in writing hereon at the time the message is offered to the Company for transmission, and an additional sum paid or agreed to be paid based on such value equal to one-tenth of one per cent. thereof. The Company is hereby made the agent of the sender, without liability, to forward this message over the lines of any other Company when necessary to reach its destination. Messages will be delivered free within one-half mile of the Company's office in towns of 5,000 population or less, and within one mile of such office in other cities or towns. Beyond these limits the Company does not undertake to make delivery, but will, without liability, at the sender's request, as his agent and at his expense endeavor to contract for him for such delivery at a reasonable price. No responsibility attaches to this Company concerning messages until the same are accepted at one of its transmitting offices; and if a message is sentto such office by one of the Company's messengers, he acts for that purpose as the agent of the sender. The Company will not be liable for damages or statutory penalties in any case where the claim is not presented in writing within sixty days after the message is filed with the Company for transmission. Special terms governing the transmission of messages under the classes of messages enumerated below shall apply to messages in each of such respective classes in addition to all foregoing terms. No employee of the Company is authorized to vary the foregoing. THE WESTERN UNION TELEGRAPH COMPANY INCORPORATED NEWCOMB CARLTON, PRESIDENT CLASSES OF SERVICE TELEGRAMS A full-rate expedited service. NIGHT MESSAGES Accepted up to 2.00 A.M. at reduced rates to be sent during the night and delivered not earlier than the morning of the ensuing business day. DAY LETTERS A deferred day service at rates lower than the standard tele- gram rates as follows: One and one-half times the standard Night Letter rate for the transmission of 50 words or less and one-fifth of the initial rates for each additional 10 words or less. SPECIAL TERMS APPLYING TO DAY LETTERS: In further consideration of the reduced rate for this special "Day Letter" service, the following special terms in addition to those enumerated above are hereby agreed to: Day Letters may be forwarded by the Telegraph Company as a deferred service and the transmission and delivery of such Day Letters is, in all respects, subordinate to the priority of transmission and Letter shall be delivered on the day of its date absolutely and at all events; but that the Company's obligation in this respect is subject to the condition that there shall remain sufficient time for the transmission and delivery of such Day Letter on the day of its date during regular office hours, subject to the priority of the transmission of regular telegrams under the conditions named above. No employee of the Company is authorized to vary the foregoing. NIGHT LETTERS Accepted up to 2.00 A.M. for delivery on the morning of the ensuing business day, at rates still lower than standard night message rates, as follows: The standard telegram rate for 10 words shall be charged for the transmission of 50 words or less, and one-fifth of such standard telegram rate for 10 words shall be charged for each additional 10 words or less. SPECIAL TERMS APPLYING TO NIGHT LETTERS: In further consideration of the reduced rate for this special "Night Letter" service, the following special terms in addition to those delivery of regular telegrams. enumerated above are hereby agreed to: is not permissible. c. This Day Letter may be delivered by the Telegraph Company by telephoning the same to the addressee, and such delivery shall be a be deemed to have discharged its obligation in such cases with respect Day Letters shall be written in plain English. Code language complete discharge of the obligation of the Telegraph Company to deliver. This Day Letter is received subject to the express understanding and agreement that the Company does not undertake that a Day D. Night Letters may at the option of the Telegraph Company be mailed at destination to the addressees, and the Company shall to delivery by mailing such Night Letters at destination, postage prepaid. Night Letters shall be written in plain English. Code language is not permissible. No employee of the Company is authorized to vary the foregoing. December 23, 1921. 4- svilif My dear Mr. Curtis: Mr._ Strong has asked me to send you the enclosed as a little Christmas remembrance for J- mes F. Curtis, Jr. With kind greetings Your James P urtis Esq., Woolworth Buil ing, NOT York City. Enc. elieve me, very truly, a') Je,nuary 14, 1.122. Dear Jim: Todey for the first time I cm taki% a crack at a little reek or ten dhps, after which mail, ?reparatory to going awfty for I expect to be back at the office. I can't tell yeu how much 1 apprecieted .A that received at the hospital from you end Laera, inclwAini< yeur twe lettees, some flowers, end a lovely plant which seemed to have a certain tenacity of life thht outleetod everything else that I had in thet line. They told me a day or SD ago that you had been good enough to call here Kt the house to see me, - all ef which transpired after you had left. The fact ia that I have been shut off entirely from callers, and, urtil the lest day or two from eny oonversetion, because the Doctor wanted my tongue to be free of any unnecessery motion. As he expressed it, I was no more entitled to une my tongue than a man was jestTfied in walking or. That was the reason why they broken leg that was only half knit. But WS will make visit with you and Please ziv e Laura my love and tell gave you the meseue;e. it all up on my return, and I hope to have a fine Laura, and kiss her I will write going. the 'god-son. her en extra apeciel just as SJA1 S.S Iet my fist With my best to you both, Sincerely yours, J. F. Curtis, 44., wooly/North Building, New York City. Dictated but not read. January 30, 19??. Dear Jim: This is my first day at business, and among other items and a large accumulation of mail, I must promptly answer yours of January 12. I do not know what eomment you have heard Nith rsspact to my views on the subject of the amendment ef the Federal Reserve Act, recently aassed by the Senate. I do recall the provisions af the se-canoe Burtun Lill very ctearly, althaugh I have not it before me nt the moment. Do yo' remember 7,t, the Plaza Fotel, when I sat, done up in plaster, my having stated that if a definition of "clacs represeataticn" of the Federal Reserve Board as to be made, it ehauld be sufficiently comprehensive to be free from the possibility of criticism. I have no objection whatever to having a farmer on the Federal heserve Board, end I do not think that as the leg vill read, with tha Senate amendment passed, that it is open to objection on that ground alone. Wy objection relates more to the method of dealing with the matter, and more specifically to the rumor, which may not be the fact, that the arrangement for the passage of the amendment as the result of a bargain, or underetanding, that a farmer mould be appointed. Let us have the farmer; but do not let's tie the hands of the appointing polar except under the constitutional provision as to confirmation. I gould rather have no definition in the his, than to have a bargain of that character made, although I cannot say definitely that any suoh bargain was made. or men Another ground of objection is that no reference is made to having a manAof banking experience on the Doard. That strikes me as unfortunate in the extreme. You may be surprised to learn that I have a good deal more sympathy for the so-called Agricultural Bloc than some people appear to have. That I January 30, 192. object to most strenuously is the employment of speoial.cualitions in such a way that the whole legislative program is held up. If they could only have been restrained for a reasonable time, I believe Lhat Gonreseman Anderson's Commission would have furnished the material to Cengresb for a mere thorough- going treatment of a11 these questions, thnn is pcesible in a piece-7,ea1 scheme of legislation. Of course, I recall that sliding oo1 rovielen in the Burton bill, which I confees was a fancy idea of my own - one the bright ones t'Int one gets after vioriini, until fuur o'clock in the niorning on vhat seems to be a.) impossible situation. But fallible 'mortals can change their views. I not regard it es a ?eculiarly vicieus 7:repose.,1 although I did not express it that way .then making thet infernal statement. The name of the school hresa, Arieonn. is The Evans. School; hut I am afraid that -le must write to Bishop Atwood to learn the name of the Head Master, which has completely gone cut of my head. I hope that you and Laura and the yc.eingsters are -veil, and that I will soon be able LI have a visit with you. Thanks for your letter. Yours sincerely, James F. Curtis, Esq., loolworth New York, N. Y. BS.UN. December 20, 1922. Dear Jim: I am enclosing a little Christmas present for that godson of mine, the delivery of which I hereby entrust to you. With it I am also sending a very Merry Christmas to all the family. Yours sincerely, James F. Curtie, Esq., fictrIVOrriTgrak., New !,:ork City. BS.MM Eno. (i60.01/1YJ December 22, 1922. Dear Jim: Thanks for your rote. I wish I could run down family party that will for Christmas Day, but I have a bi8 take ut the whole day. Flea,e give my love tc, Laura ar.d tc the kids, and a very Merry Christmas to all of you. Yours sincerely, Mr. J9mes F. Curtis, Mewerw..---ettrtts, FOsdick & Be11(11541, Woo 1 worth 91dg . , New York City. t3.9.MM December 20, 1923. Dear Jim: The enclosed is a little Christmas remembrance for that godson of mine, the delivery of which I Lm kindly entrusting to you. tith best wishes for a very Merry Christmas, believe me, Yours sincerely, Mr. James F. Curtis, 233 Broadway, New York, N. Y. . ) - ...->" ,) December 27, 1923. Dear Jim: Many thanks for your nice note. out evening engagements almost entirely. For a while I am cutting There are a few that I cannot absolutely escape, but I think until another month or so is past, that I must still go slow. If you ever lunch uptown, we might arrange to lunch together instead, as I am cultivating the habit of working uptown in the morning and then loafing in the aJternoon. Happy New Year to you. Sincerely, Mr. James F. Curtis, 233 Broadway, New York, N. Y. BS.AM October 2d, 1.. t2,4. Dear Jim: I hope you will understand my delay in ':Anstvering your letter which reached me at Colordeo I wee not very well Fihile there &ad did no letter writing, and unfortunittely our Ci'ommittee wc,.e.,in seesion when you we.me in yesterday, ,,,nd I could not to for a chat. I eln sending Maxie lctter on to P.idciy. Pleak,c come in ag:,.in when you a,re down in t:ie ne4hborhood. Sincerely, .iInes F. Curti.!, Dr:" tooliorth Building, trw YdrK, N. Y. P. 5. Your reierenct:; to Basil's w.ft&irs is rather dzyptle, and not sure that I unnerste.nd the reference. February 18, 1,;425. Dear Jim: I nm just bock from the 3outh todmy and am obliged by the usual accumulation of mil to send this typewritten regret to your note of the thirteenth. On the nineteentt the Trust Companies section of the American Bankers Association is giving its banoist, and. I am already committed to that. I am still being careful about evening engagements but now u,nd agmin feel obliged to accept invitations to these bank affairs. in sorry, though, to mit:in meeting General 6ir Frederick Maurice, and a. chance of so interesting a gathering. My best to you! sincerely, Mr. James F. Curtis, 233 Br)adway, Nta Nk,111 York. 0 0)))),X.4 Hot el Bright on, Atlantic City, N.J., Febtualy 21, 1928. Dear Jim: You may not have seen the :7nolosed note from I count it a fine production from a boy of his age, with evidences in it that his dad has an eye to his scholarship, just es he had to "those ones" at the Federal reserve bank in years gone by. We might have a little argument about the spelling of "affectionately," and whether Codson can be spelt zith a small "gee and show proper respect to the Deity. I am proud of the boy, just as you must be. Curtis. Sincerely yours, Mr. James F. Curtis, 67 lAtst 53rd Street, New York City. 57 EAST FIFTY-SECOND STREET 1 J A 11, 9 cfc).,2_1.&k Lch fr- . 19 fii c, AA- errtA.- Q-c-1 t"- / it241,.. 11-4-r-k t- 1)(-- (1)-Prijkrek,o 4-,j1 V Lkji- Ikat- larf_/L a-(2,2444.-% 0.A_ ()IN Cd` u. )11:r7A-Gt)- h-t f- a crr J- I /1- kri-' cA5-;.7 3-12- -4.4-4-a-Al, to- fkai.44. 4±, I 1 If ,,, ,-' " r)- A-j IL. t. kA,,,J-/ j t trek "V",k*C- /-0,4 Oct.Q. I 01,,,,r #_.(4 AA..4 criek ?kt_ at-}k Af t-1 :6,-e-A.... 4k-14"-L- 91,-,A.- c),A..- %._ 1-,,,-IL,tiL 0,, et,,,, '=" t n 6 -t; v 1; fra-jzTh. teAAA , . , E 4-- , tn,$) -n-. elkitituk, "1:1,44Vvi" lt,Ic- itA, M &Lk. 0-LTA-vkA-:-k-° tr\. #1,A: Lezt../3 futi,d-r\A S 0-1> 1 --iL_ '7'6 -1',' '3 EA-c_ 1----e- -g-- -,--L. t re.4ct/t,,t.y-** K. A- e-fil, 1,. 64 6-1,,,,Ac,,L -L eLe.4._ 1 if-got-cW. '-la\-tk -k- puiAii _rt,/\./ l<14^3t \LI" 9 ,,, c,,a+10 -E-K,e44- t ,t2c/44,_d + tcf-71,, 46,--y54,:i /ajA'A'At- (kT-tii" # ,(Lir-A__L i-,1, qt4 4eAt Iiii'+ IgAl 4k k- ' 7/1/4fAL flak/ C4 " k'- 2 i tue-kr-- --t- Lk-. trL 4 e 4/w4-14 tr,, c,up-fvv S0 44,k _1De_ 7. C76 4, t kmx- t I"' t:t"'"' IALq. 0 / ."CI-4.-$06.-/ cis( dsLeit44A___,Ce itt, 0 *- / -- -t e re/ , a i"-T-4.,,,k_1.4(t , 76 el.,,,, lat,-r-tt. 6-6,k ale it,',..1,,1_,4 tn,t-- ivi-ejc, LI' eu! u (61$4,,k,tk,.,4 5A- rtr,,,L, hJ( /IL . 1 ' 4 . oc bi- TIAAj( krA il,,, (,,,v),444,45-1,j 1,--L-Y- - i IwiLik( k,,,\ 5, 11,Wititi- 4.r: Li, ,.\b q,c/4- 4. kf-4A-4-1% \l'A 11-1 ,y,_ A 4-k_ 1 ti. L. ..t_ v4---ux, it P') et. ekA Vivsk ).1.., 11°C, Ct N\ c'mmti, OVIAv,--t,i4 - S'Arl'- 4611, ,Itrk- \ http://fraser.stlouisfed.org/DA-0,-1- '4.1"141. .k...., tr IA Federal Reserve Bank of St. Louis t wo rvrvs. vw,-,-It llinstlesmv r-5 c/.-1--N-$----- 0,4 S (, 61t. , ti&A,,r +frvo4114,444 'IA/v-14 , 1,,,,,,c,-4u ps CV ekA < :4,---c-.A., 7 1 FEDEA FySERVE BANK 1EW YORK 3p,M1 9\1 PERSMAL January 8, 1911. '7 dear Gov: I have your two letters of January 3rd. Before answering then, permit me to observe that your new stenographer (CC) apparently shares the erroneous view, somewhat current among others, that I am an employe of, a member of, or subject to the Federal Reserve Board, as I note that the said CC addresses me at the Federal Reserve Board, 'ew York City. It is true that the Board is very active in the affairs of the bank but they have not yet moved their office over here, so kindly keep me in my proper place for a little while longer. About the weekly reports I have to say that copies of the letters to you have not been Sent to the Federal Reserve Board for several months. It was a practice which began, I think at the suggestion of Delano, some time during the summer, when he found that we sent you a weekly synOpsis of affairs, as he thought it would save us trouble if we sent a copy to him. 7y impression was,at that tine that we sent him a copy with the un- derstanding that it was for his confidential information and not to go on the files of the Board. The practice was continued until the end of September when 7r. Jay decided that in view of some of the matters which were included in the reports, it would be unwise to continue sending them to 7r. Delano, and since that date, so far as I know, no copies have gone to the Board. About the Bank of England matter and natters in general at Washington, I agree with you that there seems to be nobody who understands the effect that words may have. With 7r. ilson I feel this is clearly based FEDERAL RESERVE BANK OF NEW YORK Benjamin Strong, Esq. 1/8/17. upon the fact that he does not himself translate words into deeds and, therefore, has lost touch with those wha do. He also gets wrapped up in the beauties of his own expressions and fails to make them express his meaning as clearly as he used to. "'ith the Board I think the case is somewhat different, although the I know they are having a very hard result comes to about the same thing. time there owing to the variety and strength of the cross-currents, concern- ing which you are not unaware, but it does seen that every time they open their mouth, they put their foot in it. (-7-7i;Tiou and I both eurmised, Davison was not the greatest diplomat on record, especially when asked haw many of the treasury bills they proposed to issue. His reply WAS to the effect that they pronosed to issue them without any limit and up to any amount that the banks would purchase, and when one member of the Board (who was friendly) said, "Do you mean absolutely up to the noint of saturation?" Davison replied, "Yes," and he would give no figures of any possible limit, excent such vague remarks as possibly half a billion ar a billion. Two days later the New York Tribune had a story that the amount to be issued was up to a billion, which apparently affected the Board. Commenting on this phase of the situation, Jack norgan told me that they had not intended to issue, as a natter of fact, more than the amount of gold held by the British government in Ottawa, which was something over a hundred A144.404 millions, and his only connent on the igthawa of the Tribune statement was that it was a new thing in his experience to learn that this administration took anything the Tribune said as grounds for conduct. At the conference one of the members of the Board, who wanted to . traighten things out, asked Davison if he could not nostpone any announce- ment or action for about a week, thinking that during that time the more Benjamin Strong, Esq. FEDERAL RESERVE BANK OF NEW YORK ZZ 0 1/8/17. violent members of the Board might be composed into a position of acquiescence. To this, however, Davison only replied that their arrangements were made and could not be held back, and that he was only telling these things to the ' Board as a natter of courtesy and not with the expectation of receiving any advice. Of course the Bank of England announcement was made to offset the treasury bill one, and the combination of the various announcements naturally tends to make everybody wag their heads sagely and say, "I told you so, political motives are still in control." However, our committee is going down to have a conference with them on 7ednesday, and 'I hope may accomplish In the meanwhile don't you want to draft a letter to the Bank some good. of England, putting the final touches on the understanding, so that we can really get busy? Perhaps you have already done this without its having come to my attention, as I have not been at the office for almost a week. As to resignations, there are so many of them fluttering in the breeze that I hope nobody sets the example by actually shipping one along. Delano told me confidentially that it was all they could do to persuade Harding from resigning when he got a very good offer the other day. He has been ill and under much criticism and apparently was about ready to throw up the sponge but they persuaded him that the fat would surely be in the fire if he did, and so he is staying on. I suppose if he did resign, Barney Baruch would be appointed in his place, in order to prove that the stories about his profits tt on the leak are base slanders. Nevertheless, I have sort of a feeling that 'qarney was short of the market at the correct time, although, like Tom Lawson, I couldn't prove it. By the way, permit me to assure you that the "A. Curtis," who wrote to Congressman ood, is not yours truly, nor even my distant relative, Allan. Apparently it was a name selected by a humorous letter writer because it sounded like somebody real, I suppose. It is still very amusing FEDERAL RESERVE BANK OF NEW YORK 4 Benjamin Strong, Esq. Ca to a Bostonian to see some people taking Tom Lawson seriously at this late day. I think Gus Gardner has the right idea of what happened, to the effect that some of the ticker news service people broke the confidence which apparently Lansing had placed in them. You don't know Barron as well as I do, but neither he nor his henchmen would hesitate to turn a little trick &I,A42144. 44,--1. 4 like that, especially when it was so easy to make a little money. The reason why this letter is so long and discursive is that I sit at home with my feet in a chair and have nothing else to do but talk. Have you seen a copy of the Board's proposed amendments, as shown sour 64. in Opus 944? In case you have not, I am sending you a c"Yr " im, 4.-et 014-4. t-41-4 f 2 ,n, I think their suggestionsconcerning the amendments to Section 19 are very good and I believe they have struck upon the right principle, except that I do not believe in the idea of requiring any amount of till money to be carried in the member banks' own vaults, as provided at the top of page 3 of Opus 945, in view of the other provisions of the amendment. The real effect of the change, with this sentence added, is to leave the reserve rea., al- 14.4"-A-4---r quirements the sameA(except as to the amount held against time deposits) and .it 5'1 of the reserves to be carried in deposits with Federal reserve barikepo gold certificates, silver certificates, greenbacks, Federal reserve notes, Federal reserve banks notes, national bank notes, or quarters, dimes or nickels which does not seem to me a very scientific provision. I would be more in favor of their original plan of having the only reserves required, a balance in the reserve bank, and let each member bank decide for itself the amount of till money which it considered necessary or desirable to have on hand for the conduct of its business. for the amendment shown on Opus 906-b, I an strongly opposed to it, as I believe the only time that the 73oard would exercise the function of increasing the reserve requirement would be when it was absolutely useless or 446.4 FEDERAL RESERVE SANK OF NEW YORK Benjamin Strong, Esq. 1/8/17. when such action would bring on A4 nanic,.vhich it was intended to prevent. I an also opnosed to Opus 947, as I don't believe in trying to tease the State banks into the system by. this sort of half-way bait. In my opinion it won't work and the Board will be in the position of nublicly asking for something that the State bankers will publicly refuse. On the other hand, if it does work, I think it will antagonize the national bankers, Tio will stPnd by and see the State bankers obtaining what will appear to be the only useful thing to be got imm out of the reserve system without paying the same price for it. I am in favor of the amendment to Section 17 of the Act, as pro- posed, and only wish the Board would go a little further still along this line. In Opus 950 I think they make a mistake not to correct the sections there and change No. 4 to 7o. 14 in the third line. I hope this letter has not overwhelmed you with its length and that you won't attempt to reply except on the instalment plan. I am still expecting to go West some time this month, although the exact date gets farther off the nearer it arproaches. the holiday season without mishap. Yours, as ever, Benjamin Strong, Esq., 4100 Montview Boulevard, Denver, Colo. JFC/CEP I trust you survived 3 FEDERAL RESERVE BANK OF NEW YORK January 13, 1917. JAN1 9 :.;11 7y dear Gov: Referring further to your letter of January 9th, you need not be disturbed in mind about the action of our board with respect to the Bank of ?ranee matter. Neither the board nor 7r. Treman contemplated asking the 2ederal Reserve 73aIrd for permission to negotiate with the Bank of France and his letter was misleading in this regard. All that was contemplated was to send down in the near future an application for permission to appoint the Bank of -2rance correspondent and agent, which would be made out in exactly the same form as the formal application with respect to the Bank of England. Referring to 7-our letter of December 24th, I want to say that I think you are under a misapprehension about the foreign paper money that So far as I am aware, nothing has been handed to has been given to me. me by 7r. Reixeotto. Of course, I have a little box filled with your paper money but I think it came to me from somebody at your apartment, although I may be wrong. I note that in both November and December I deposited E).20 to ::our credit at the Bankers Trust Company to take care of Piping Rock Club bills. Your note of December 7th, however, seems to indicate that the second one should have been for !8.50, so that I guess I owe you 2.30, which I will repay if it is the correct amount. Don't forget to advise me promptly what you want to do about Hot springs, Ark., as I an really very nearly on the wing now for the West. Benjamin Strong, Esq., 4100 Montview Boulevard, Denver, Colo. http://fraser.stlouisfed.org/ Ifli'P Federal Reserve Bank of St. Louis Sincerely yours, OSTAL TELEGRAPH. [FINEST COMMERCIAL CABLES TELEGRAM CRANIA. BUILDING 920 17y9 STREET DENVER. COLO. TELEPHONE: MAIN 4500 The . CLARENCE H. MACKAY: -PRESIDENT. RECEIVED AT MAIN OFFICE DELIVERy No. 73 r,k., Telegraph-Cable Company(Incorporated)transmits and delivers this message subject to the terms and conditions printed on the back of th, 150-29915 DESIGN PATENT Ile. 401111 7/i YJ F TELE, 57 cb jo 29 1019am M YewYork WED Jan 18 17 Benjamin Strong for Will 4100 MontView startAchandler Tanuary 26th. Blvd. Denver Jerome Greene also coming can you reserve room for him Suggest you join our train near Trinidad Will telegraph details later J F Curtis POSTAL I .EI int,sta -11 Walgrfr JAPAN OPERATOR'S b314 TIME SEW VANGOLIVE PACIFICCE AN COIC.K.HAMA SAN IRAN MIDWAY BERMUDA ATLANTIC OCEAN T V.114CFIT THE GREATEST TELEGRAPH AND CABLE SYSTEM IN THE WORLD. EXTENDS OVER TWO-THIRDS OF THE WAY AROUND THE EARTH. THE POSTAL TELEGRAPH-CABLE COMPANY %COS PORATE.) TRANSMITS AND DELIVERS THE WITHIN TELEGRAM SUBJECT TO THE FOLLOWING TERMS AND CONDITIONSI To guard against mistakes or delays, the sender of a telegram should order it REPEATED; that is, telegraphed back to the Comparison. For this, one-half the unrecorded telegram rate is charged in addition. Unless otherwise indicated on its face, THIS ISoriginating office for AN UNREPEATED TELEGRAM AND PAID FOR AS SUCH, in consideration whereof it is agreed between the sender of the telegram and this Company as follows: 1. The Company shall not be liable for mistakes or delays in the transmission or delivery, or for non-delivery, of any ,mount received for sending the same; nor for mistakes or delays in the transmission or delivery, or for non-delivery,UNREPEATED telegram, beyond the of any REPEATED telegram, beyond ,Ity times the sum received for sending the same,-UNLBSSSPECIALLY VALUED; orking of its lines; NOR FOR ERRORS IN CIPHER OR OBSCURE TELEGRAMS. nor in any case for delays arising from unavoidable interruption in the I. In any event the Company shall not be liable, for damages for any mistakes or delays in the transmission or delivery, or for the non-delivery of this legram, whether caused by the negligence of its servants otherwise, beyond-fifty REPEATED telegram rate, at this telegram, ,nt as a REPEATED telegram; la, hereby valued, unless or greater value is stated intimes thehereon at the time the telegramwhich amountthe Company if a Is offered to for Ansmission, and an additional Burn paid or agreed to be paid based on such valuewritingto one-tenth of one per cent. thereof. equal The Company is hereby made the agent of the sender, without liability, to forward this telegram over the lines of any other Company when reach its destination. necessary Messages will be delivered free within the established free delivery limits of the terminal office. For delivery at a greater distance a special charge will be ,ide to cover the cost of such delivery. _/_111, .. No responsibility regarding messages attaches to this Company until the accepted at one of its transmitting offices: and if any esiage is sent to Such Office by one of this company's. messengers, he acts as thesame'rre'presented and the agent of the sender for purpose of delivering the message and any notice or structions regarding it to the Company's agent in its said office.' The Company shall not be liable for damages or statutory penalties in any case where the claim is not presented in writing within Edify dar after ths legram 14,1,1 with the Company for transmission. 7. The al., ib terms and conditions shall be binding upon the receiver as well as the sender of this telegram. I. NO EMPLOYEE OF THIS COMPANY IS AUTHORIZED TO VARY THE FOREGOING. C. siARLES C. ADAMS, VICE-PRESIDENT. f CLARENCE H. MACKAY, PRESIDENT. EDWARD REYNOLDS, VICE-PREST. AND GENERAL MANAGER. CHARLES P. BRUCH, VICE-PRESIDENT. 'HICIASTEST TELEGRAPH SERVICE IN THE WORLD POSTAL TELEGRAPH TELEGRAM RECEIVED AT MAIN OFFICE CRAMMER .1.111.0ING O 17TH STREET D COMMERCIAL CABLES CLARENCE H. MACKAY, PRE$1DENT. .NER, COLO. TELEPHONE: MAIN 4000 DELIVERY NO. The Po talTelegraph-Cable Company(Incorporated)transmits and delivers this message subject to the terms and conditions printed on the back ol this Limit. 160-29018 97cbwh DESIGN NITENT 116, 101110 22 1114a CB.npwyork,Jan 19,17 vinjamin Strong 4100 Vontview Boulevard Woodward suggests adding at end or desirable end quote letter and Roberts J. F. Curtis enver, Colo Sy-- of letter the rfords as changed approval by Kent POSTAL TELEGRAPH-COMMERCIAL CABLES THE GREATEST TELEGRAPH AND CABLE SYSTEM IN THE WORLD. OPERATOR'S NOTATIONS, TIME SENT, ETC. EXTENDS OVER TWO-THIRDS OF THE WAY AROUND THE EARTH. THE POSTAL TELEGRAPH-CABLE-COMPANY (INCORPORATED) TRANSMITS AND DELIVERS THE WITHIN TELEGRAM SUBJECT TO THE FOLLOWING TERMS AND CONDITIONSI To guard against mistakes or delays, the sender of a telegram should order it REPEATED; that is, telegraphed back to the originating office for comparison. For this, one-half the nnrepeated telegram rate is charged in addition. Unless otherwise indicated on its face, THIS IS AN UNREPEATED TELEGRAM AND PAID FOR AS SUCH, in consideration whereof it is agreed between the sender of the telegram and this,Company as follows: I. The Company shall not be liable for mistakes oretelaye in the transmission.or delivery, or for non-delivery of any UNREPEATED telegram, beyond the amount received for sending the same; nor for mistakes or delays in the transmission or delivery, or for non-delivery, of any REPEATED telegram, beyond tlfty times the Sam received for sending the same, UNLESS SPECIALLY VALUED; nor in any case for delays arising from unavoidable interruption in the working of its lines; NOR FOR ERRORS IN CIPHER OR OBSCURE TELEGRAMS. 2, in any event the-Company shall not be liable for damages for any mistakes or delays in the transmission or delivery, or for the non-delivery of this telegram, whether caused by the negligence of its servants or otherwise, beyond fifty times the REPEATED telegram rate, at which amount this telegram, if sent as a REPEATED telegram, is hereby veined, unless a greater value is stated in writing hereon at the time the telegram is offered to the Company for tratierthasioS, and an additional sumpaid 10r Wiled to be paid based on such value equal to one-tenth of one per cent. thereof. The Company IS hereby tntde the agent ofilth' sender, without liability, to forward this telegram over the lines of any other Company when necessary reach its destination. 4. Messages will be delivered free within the established free delivery limits of the terminal office. For delivery at a greater distance a special charge will be made to cover the cost of such delivery. No responsibility regarding messages attaches to this Company until the;s9Tositt presented.aritATaceepted at one of its transmitting offices; and if any Message IS sent to such office by one of this Company's messengers, he acts as the agent of the sender for the purpose of delivering the ines_sage and any notice_or___ it to the Comps:WS *milt in ibiaeld office. B. The JP.y shall not be liable for damages or statutory penalties in any case where the claim is not presented in.writintwithin sixty /aim after the Wegrain is filed with the Company for transmission. $43 . S. The above terms and conditions shall be binding upon the receiver as well as the sender of this telegram. NO EMIAOTEE OF THIS COMPANY IS AUTHORIZED TO VARY THE FOREGOING. CLARENCE H. MACKAY. PRESIDENT. CHARL( . ADAMS, VICE-PRESIDENT. EDWARD REYNOLDS, VICE-PREST. AND GENERAL MANAGER. CHARLES P. BRUCH, VICE-PRESIDENT. THE FASTEST TELEGRAPH SERVICE IN THE WORLD rrm.rA, 4/7 40EAST FIFTY-SE t,PCi< 7;z Vo'h ./t eta ai-744/4-11_ X ak-d .4r,ri7kr, iv FEB2 0 1917 -0& by-7_2e' _ h_.(y /4t4, %440-44/' , ,Apt t/ e 0 4)-7/ hA-e IA /' 4)-22_to " WZ-Ze-t_tz Atzt_v pae-eck z . AA. a2 .444c_A-<-4-1 6,e,k,,tt6t4-c. Att,A4,1 6&f4 'PetCL 14?4,6( r,,V)t 57 East Fifty-Second Street Feb. 20th (1917) Dear Gov: Many thanks for your letter and also for attending to all the chores at Phoenix. straightened out. I will reimburse you as soon as I get my accounts In the meanwhile, may I trouble you to send me my cap and ask Miss Andrews if I left some socks and/or golf stockings behind in your house? Jerome Greene is back already. He says he was sick in San Francisco with vertigo for a few days but did telegraph us that he couldn't join us. Apparently he got sort of lonely and so came home ahead of time. Isn't it sad about Funston. He was a good man. I am making myself unpopular at the Bank by telling everyone they're no good. Jay was in Washington today to arrange for a confidential! handling of our French matters and telegraphed that he had met with success. So we will send the Pallain cable tomorrow. Treman tells me that Harding said to Aiken recently that he didn't think there was any use in having Governors' Conferences more than twice a year, but I am suggesting holding one in March just the same. Am drafting a very fierce rejoinder to Harding's "condone" letter of Feb. 6th, but I doubt if I can persuade the rest to stand for it, though I am violently opposed to leaving the record stand as though we had been in the wrongjand the Board maligned angels of forgiveness and light. Doubtless you have seen that Backus has died of mastoiditis in 15 minutes. Laura sends her love. Please give mine to your charming daughter whom I would like to challenge to another game of Parchesi. Have spent most of my time at Blackwell's Island and the Night Court since my return, trying to ameliorate the condition of the downtrodden prostitutes. It's a fine life! Yrs, J. F. C. (CURTIS) FEDERAL RESERVE BANK OF NEW YORK February 21, 1917. FEB2 G 1917 My dear Governor: In your letter of December 21, 1916, to Mr. Treman you suggest that arrangements be made, if they have not already been undertaken, to have the data which is now submitted at each meeting of the board of directors in the blue binders assembled in periods corresponding to our financial year, bound in a permanent leather binding with suitable inscription on the back and with an index which will make the contents readily accessible. I find that 7r. Jefferson has recently undertaken the binding of a large quantity of miscellaneous material.which is received periodically at the bank, such as the daily treasury statements, our weekly reports to the Federal Reserve Board, the Comptroller's statements, and all of our miscellaneous data that is in any way worth preserving. In connection with this he has also made arrangements to have the matters presented to the directors bound in accordance with your suggestions. As yoi . probably are aware, the practice in this regard has been, since the reports have been submitted in formal shape, for the auditor to certify to the reports submitted at each meeting and for the secretary to certify that a copy of such reports was presented to each director at the meeting. The certified copy is then handed to the auditor at the end of the meeting and kept by him under seal. Consequently, when these are bound up for each year, the volunes will contain complete and certified copies of all such reports of condition submitted to the directors. We are having the sane thing done with respect to the reports from Benjamin Strong, Esq. FEDERAL RESERVE RANK OF NEW YORK 2/21/17. the auditor that are submitted to the board, except that I do not certify to the fact of their submission but that fact now appears in the minutes of every board meeting, with a sufficiently accurate description of the auditor's report to identify it. In the old days the minutes only showed that the auditor submitted a report or reports, without identifying description, but our practice has improved in this regard. With respect to your suggestion that the contents be indexed, we are all of opinion that the index would be larger than the report itself and would be somewhat superfluous, as of course the data is always arranged in the same order and will appear in the bound volumes chronologically, so there should be no difficulty in finding any Particular piece of information required. course, this would not be true with respect to the names of banks for which rediscounts were made or for the names of makers or indorsers of acceptances or warrants, but all of these things can be readily found elsewhere in the bank. Very truly yours, Benjamin Strong, Esq., 4100 Montview Boulevard, Denver, Colorado. J20/CEP Of FEDERAL RESERVE BANK OF NEW YORK February 23, 1917. My dear Governor: FEB2 6 1917 On the 21st we sent a cablegram to M. Pallain in your name as follows: "Your letter December twenty seventh received Before sending rerly outlining our final and definite proposals we propose to make application to federal Reserve Board for its consent to our appointing Bank of France our agent and corresnondent stop If consent is granted announcement thereof without stating proposed terms would be made promptly in newspapers similar to announcement made of authority to appoint Bank of England stop 7i1l it be agreeable to you to have such announcement made prior to our arriving at a definite understanding of actual terms stop Please reply Federal Reserve Bank New York." stop to which we received to-day the following reply: Nous empressons "Recevons votre telegramne stop vous repondre que nous serait agreable vous voir prendre aussitot que possible dans merles conditions que pour Banque Angleterre initiative de la communication a faire stop Vous renercions une fois de plus de vos dispositions ami!es meilleurs compliments personnels." cales stop which I have translated as follows: We hasten to re"Your telegram received stop ply that we would be pleased to have you set in motion the communication as soon as possible under the same conditions 7e thank you once again as for the Bank of England stop ry best personal complifor your friendly actions stop ments." As I think you were advised the other day, Mr. Jay went to Washington and obtained an understanding from the Board that such an application from us with respect to the Bank of France would be acted upon promptly and favorably and that anyannouncement concerning it would be made only after advice to us. This afternoon Mr. Jay called up Mr. Warburg and told him of the FEDERAL RESERVE BANK OF NEW YORK 0 24t._ Benjamin StroAg, Esq. 2/23/17. receipt of the cablegram and read him a draft of application which we propose to send forward, as follows: "In accordance with the provisions of Paragraph E of Section 14 of the Federal Reserve Act, the Federal Reserve Bank of ITew York hereby respectfully makes application for the consent of the Federal Reserve Board to open and maintain an account with the Banque de France, an organization established under the laws of the French Republic, having its principal place of business in Paris, France, and to appoint the said Banque de France its correspondent and to establish the said Banque de France as its agent in said French Republic, and to open and maintain a banking account for the said Banque de France." Mr. Tarburg suggested that we do not forward this letter till tomorrow as the Board would not act on it on Saturday and he was going to be away and he would prefer to be present when the application was received, so this will be mailed some time during the day to-morrow and I will attempt to return to you with suggestions for changes the draft of the letter embodying our final proposals to L. Pallain. Rhoads was in for a little visit this morning but did not have much that was new to report. I tackled him on the committee report on Federal re- serve exchange, which he said simply represented a compromise and was in his opinion about the best they could have pulled out of the fire at the time. His personal view still is that the whole thing is unnecessary and that it would be better not to do anything at all. Very truly yours, Benjamin Strong, Esq., 4100 Montview Boulevard, Denver, Colo. JFC/CEP f-,i 01We4, 606, C(41/441440 UA- hiat e etk ..'r dtv;. ve4, 4raolz 200,4. &to 4e.? Kca ctIt4 FEDERAL RESERVE BANK 644141,64",, a:au" OF NEW YORK g chat' fq-Calf--) February 24, 1917. atibtivra " ektatt Lc' t My dear Governor: The draft of the letter and memorandum to be forwarded to the Bank of France has been given careful consideration by the officers of the bank, as well as by Messrs. Kent and. Roberts, and we have the following suggestions to make: IN T117 777MORANDUM Paragranh 6, line 2. Paragraph 8. Change the word "commission" to "commissions." The clause which limits the setting aside and earmark- ing of gold to a time "when rates of exchange will not allow withdrawals without loss to the creditor institution" meets with three criticism as follows: It is not entirely clear what the word "withdrawals" will be Interpreted to mean. It requires the Bank of France to set aside gold on the assumption that the Federal Reserve Bank of New York has determined for itself and from its own data (which cannot be verified by the Bank of France) that the situation described in the limitation actually exists. If there should be an active dealing in exchange, it would be extremely difficult even for the reserve bank to know exactly whether or not the whole or any designated portion of its credit balance could be withdrawn without loss, as of course the francs represented by the balance would have cost varying amounts of dollars. Mr. Kent thinks that this phrase might easily lead to misunderstandings and to suspicions on one side that the other institution was not playing quite fair. I have, therefore, drafted a suggested change, which would leave the paragraph reading as follows: "The debtor institution, at the request of the creditor institution, to set aside and earmark gold on a bullion basis representing balances due, and upon like request to ship gold in settlement of balances, all as set out below: 2/24/17. Benjamin Strong, Esq. FEDERAL RESERVE BANK OF NEW YORK "In the case of gold set aside and earmarked, the same to be separately packed and stored and clearly identified as to ownership. It should be understood that the amount of gold or coin to be set aside or earmarked during a given period is to be arranged for by the creditor institution with the debtor institution as far in advance of the request as practicable." Paragraph 11 (a). 7-)e have not been able to establish with finality the French mint rate and think this matter should be covered carefully in the letter. In the meanwhile I would suggest that 11 (a), (b) and (c) read as follows: The Bank of France to earmark and set aside refined gold bars, nine-tenths fine, for the Federal Reserve Bank of New York at the FRENCH MINT rate, which we understand is francs 3437 per kilogram of pure gold,-or When refined gold bars are not avlIpble, the Bank of France to earmark and set asidrpnited States gold coins for account of the Federal Reserve Bank of New York at their bullion value at a rate equivalent to the rate of francs 3437 per kilogram of pure gold,-or (-11(c) (i) The Bank of France to earmark and set asidrench gold coin at its bullion value at a rate equivalent to the rate of francs 3437 per kilogram of pure gold." Paragraph 12 (d). Mr. Kent thinks it would be wise to delay send- ing the letter until we can arrange for the abrogation of the remelting charge and thus eliminate the last two sentences, which he feels may upset the French equanimity. As you know, we are working on this but have not yet got a de- finite agreement from the Treasury Department. If we succeed in getting one in the next few days, we will telegraph you. Paragrarh 14, line 2. 'Insert after the word "undertaken" the words "by either institution for the other." This will remove any possible misun- derstanding through errors in translations, which might lead them to believe that we were binding ourselves with respect to other arrangements with banks of other nations. 2/24/17. Benjamin Strong, Esq. 3. FEDERAL RESERVE BANK OF NEW YORK If these changes meet with your approval, will you redraft the let- ter to suit yourself in final form,and for this purpose I enclose herewith some of our letter paper. Very truly yours, Benjamin Strong, Esq., 4100 Montview Boulevard, Denver, Colo. JFC/CEP Encs. eAkoL,v( CA,iit-&< c" 7L /I4A Cal - 7Ttl; C-44J-r t}te4 (d) eJ FEDERAL RESERVE BANK kOF NEW YORK February 27, 1917. wiNs3 My dear Governor: In the matter of the Bank of France we have received word from the Federal Reserve Board that they have approved our application for permission to appoint the Bank of France our correspondent and agent and open accounts with it, both abroad and at home, and have stated that they will make announcement to this effect in the morning papers of Thursday. We have accordingly cabled to H. Pallain as follows: "Greatly pleased to receive your message twenty We have received from Federal Reserve Board second stop. Their authority to appoint Bank of France our agent stop. action covers only formal authority to appoint leaving all Our details and terms to be agreed upon between us stop. views and proposals for such agreement go forward by mail This bank will make no anliwunca.-probably this week stop. ment until terms have been agreed upon between us but Re-: serve Board will announce in newspapers March first that our application for authority to appoint you as agent has been approved and will quote paragraph E. Section fourteen of Federal Reserve Act indicating business permitted to be done through such agency and will state that other Federal reserve banks may participate through us in agency relationship when established." which, as you will perceive, is intended to reconvey the notion that "all is not gold that glitters." I regret that awing to Woodward's absence, his suggestions have not been incorporated in the redraft of the letter which I sent you on Saturday but he is going over it to-night and will let me have his views to-morrow. There is not much else new in this part of the world. As Mr. Wickersham remarked to-day, he is prepared to stand behind the President if he can be sure that he won't get his toes mashed in the process. However, confirm I suppose these subtleynotions indicating a forward progress still you in your theory of the depth of his understanding. Benjapin Strong, Esq., 4100 Montview Boulevard, pener, JFC/CEP Colo. Yours as ever, FEDERAL RESERVE BANK YORK laSIPIEW mAR3 1911 February 28, 1917. Dear Gov: I enclose herewith a check for :308.50 composed of the following items: Loaned Piping Rock Club bills and 7fmi r)pir. lot; 16.35 for all of which nlease accept my grateful thagla.; " 4 104 IIiVPlitatX I told Mrs. 7cLaren that I did not understand about the Piping Rock Club bills as Laura and I abandoned the principle of signing your name down there some while ago and these things should not cone in to bother you. If you have the slips on which these charges are based, would you be so kind as to send them on to me so that I can see if somebody is putting one over on us. I kAimore than sorry to learn that you caught cold on the trip back from Phoenix and hope that you are shaking it off in good shape. T. B. tells me that we were very foolish not to go on to Globe and especially to the Magna Company's nine, where they have some very interesting new operations going on. I am afraid Mr. Cann's nlace will be hard to fill. Have you any suggestions as to a successor, either in his capacity of credit man or of foreign exchange expert. vverything is very quiet here and you would not know that we are on the verge of war. Perhaps we ain't! I have just received your letter of the 23rd and note that you have been led to write McAdoo a long letter containing a few modest suggestions, of FEDERAL RESERVE BANK OF NEW YORK Benjamin Strong, Esq. 2 2/28/17. which you have an extra copy for me but don't dare send it until after you I don't know what production you are refer- have first read my nroduction. ring to in this instance, as I haven't promised to advise anybody of anything, so far as I know. Please send me the extra copy, as I should like to see if my ideas as to how to run the Treasury Department are correct. I am sending you a copy of Maurice Low's "Blockade and Contraband." I agree with you that it is not very deep. I think his weakest point is attempting to justify the blockade of the Baltic ports of Germany against our commerce but leaving them open to trade with the Scandinavian nations, where he and Sir Edward Grey attempt to say that the situation is justifiable because the passage of commerce to a blockaded area across a land frontier or across an inland sea has never been held to interfere with the ef'.'ectiveness of the blockade. This really does not answer the criticism and seems to me a very foolish form of assertion, in the first place comparing the Baltic to an in- land sea and in the second, attempting to get away from the real proposition,. which is the blockading of definite ports on the Baltic. T?owever, I think in the main his pamphlet is correct. I don't think he fails to touch on the subject of the mails for the reason that yo" probably think he does. My idea is that there is no real question of the authority of Great Britain to censor the mails as she does. The book on the budget, which I promised you, has not yet been published but you shall have a copy as soon as it comes along. Sincerely yours, Benjamin Strong, Esq., 4100 Montview Boulevard, Denver, Colo. FEDERAL RESERVE BANK OF NEW YORK BANK OF FRANCE March 3, 1917. My dear Governor: e have just received a letter from M. Pallain, dated February 13, 1917, of which a rough and ready translation is as follows: 'Pear Mr. Strong: "The French consular agent at Denver has notified me that my letter of December 27th last, to which I made allusion in my telegram of the 29th, has been presented to him and that he has not been able to take delivery and give a discharge to the postal service. Perhaps the address on it was not sufficiently precise. In any event the letter has not been returned to me. "In case you have never received it, I enclose herewith a copy and ask you to excuse this entirely involuntary delay. "M. de Neuflize has told us of your expected return to New York. I hope very much that you are now entirely returned to good health and I am very glad over it. "Pleasc accept, dear Mr. Strong, my most cordial sentiments and regards. (Signed) G. Pallain." There was also enclosed a copy of the letter of December 27th. Very truly yours, Benjamin Strong, Esq., 4100 Montview Boulevard, Denver, Colo. JFC/CEP fu/ FEDERAL RESERVE BANK OF NEW YORK aff mAR 1 51917 March 6, 1917. My dear Governor: I have your letter of March 2nd with reference to the Bank of France and beg to reply as follows: I enclose herewith a memorandum of changes which I would sug- gest making in the memorandum and also a menorandum of changes which I would suggest making in your letter to M. Pallain. As to the various points you have raised, I will summarize them as follows: No. 1 on page 1 of your letter you will perceive has been adopted. All the points covered in your letter of February 11th to Mr. Treman have been attended to, as /To. 2. follows: Messrs. Roberts and Kent have advisea with us. 7e are advised that the Bank of France buys bar gold at francs 3437 per kilo. of pure gold, which is equivalent to the legal price of francs 3444.44 less the coinage charge of francs 7.44, which equals francs 3437. If this were translated into a rate for standard French gold coin, it would be francs 3093.3 for one kilogram, as the French gold coins are supposed to be 90% fine gold and However, owing to the 10% copper alloy. process used for mixing the gold and alloy, it is impossible to have all the coins uniformly 90% fine gold and because of this the mint allows a limit of tolerance of one onethousandths with respect to the fineness of Consequently, I would sugthe gold coins. gest that 'e leave the rate as it was suggested in my letter of February 24, 1917, i. e. relating only to pure gold. Changed, as you have already been advised. LIEMRATZUTI OF SUGGESTED CHANGES IN 11EMORANDUM RE BANK OF FRANCE. Change last sentence in No. 12 (e) to read: "French gold coins which are abraded below the limit of tolerance of 1/10 of 1% for hundred franc pieces and fifty franc pieces, 2/10 of 1% for twenty franc pieces and ten franc pieces, and 3/10 of 1% for five franc pieces, old or gold coin is availare not to be ship,,ed if able." %. Change No. 11(a) by striking out the words "which we understand is" and substituting therefor the word "of." Change paragraph 8 by making a period after the word "ownership" and a new sentence immediately-following. Place at the end of the last sentence a semi-colon with the following: "And in general the amount of obligation payable in gold, which may be incurred at any one time by one institution in favor of the other, is to be limited as stated in paragraph 16 below." ,7 Omit the last sentence of paragraph 21. Insert 4 new paragraph after 19, as follows: "Each institution agrees to waive the benefit of any moratorium or other law now or hereafter existing, which might prevent or delay the carrying out of any of the obligations of this contract." at 7EMORAIMU1t OF SUGGESTED CHANGES IN LETTER TO M. PALLAIN. Page 1, last line. Change "confirmation" to "confirmations." End 9f the sentence with the word "herewith," and add the following sentence,i "Nattrally we are delighted that we have received official authorization from the Federal Reserve Board to proceed with these negotiations to a conclusion." Page 2. Page consent." Strike out the first line. 3, lines 9 and 10. Strike ant the words "with the government's Change the next sentence to read as follows: "However, should our information be incorrect and should the exportation of gold require the assent of your government, I assume that it will be necessary to obtain the government's assent to our proposed arrangement which contemplates the settlement of the account by exportations of gold under certain contingencies." Add at the end of the letter a clause stating that our figures concerning the mint rate for gold bars and gold coins and the French limit of tolerance are in accordance with advices received in this country and if they are not cor-ect, they should be changed in the memorandum of agreement. FEDERAL RESERVE SANK OF NEW YORK Benjamin Strong, Esq. 3/6/17. The French limit of tolerance has been investigated and is covered in memorandum and letter. Same as to French law on gold exports. 77e have confirmed your understanding that French gold coins are 90% fine gold and 10% copper alloy. Covered by suggested changes in letter and memorandum. Same as (7). Mr. Jay submitted the details of the pro'Your No. 5) posed arrangement with the Bank of France to Mr. Warburg individually after the Board had approved our application for permission to appoint the bank our agent, and with the understanding that the draft of memorandum would not In fact it was returned go on the files of the Board. by Mr. Warburg under date of March 2nd with a letter in which he said that without submitting the matter formally to his colleagues he had given them an opportunity individually to look it over, and neither they nor he had any comment to make, and that the memorandum appeared He also added, not satisfactorily to cover the case. by way of criticism, that he did not quite understand why broad emphasis -should be laid upon French bills drawn or indorsed by American firms and vice versa dollar bills on America drawn by French firms, and I understand Mr. Jay has given him an explanation of the underlying thoughts in this connection. As to whether the Assay Office can be persuaded to waive the 500 charge for bars, I cannot say, but I think we should send the letter and memorandum forward even with You have doubtthis troublesome point left undecided. less seen Mr. Jay's letter of March 3rd to Secretary McAdoo, but '1 doubt if we get a reply to it for at least a couple of weeks. ) Your other suggestions, covered by your Nos. 8-14 inclusive, will receive attention in due course. I trust that this sufficiently covers the situation. hesitate to fire when ready. Yours sincerely, Benjamin Strong, Esq., 4100 Montview Boulevard, Denver, Colo. If not, do not POSTAL TELEGRAPH RECEIVED AT MAIN OFFICE RT CRAMMER BUILDING 17TH STREET DENVER. COLO. TELEPHONE: MAIN 4500 COMMERCIAL CABLES CLARENCE H. MACKAY PRESIDENT. TELEGRAM DELIVERY NO. 7/2 The Postal Telegraph-Cable Company(Incorporated)transmits and delivers this message subject to the terms and conditions printed on the back of this blank. 180-29m8 495-chho 88 OMNI PATENT SA ANWIN 1249p cb New York mar 7-17 Benj Strong 4100 Montview Blvd Denver Colo Your letter march third and enclosures received we note paragraph eleven D states abraded coin are not to be earmarked or shipped if other gold or coin is available whereas paragraph twelve E states abraded coin are not to be shipped stop Is omission of word earmarked in twelve E intentional or shall we insert it stop Same divergence appears in our English letter stop Shall we include a paragraph mutually waiving benefit of future moratoriums stop We are advised existing moratorium 3 F Curtis, does not apply please wire answer. POSTAL TELEGRAPHIMMERCIAL CABLES ENGLAND ,NEWPOUNDLANO 1.111POINaffer" 4 ATLANTIC OCEAN VINCISAIT THE GREATEST TELEGRAPH AND CABLE SYSTEM IN THE WORLD. EXTENDS OVER TWO-THIRDS OF THE WAY AROUND THE EARTH. THE POSTAL TELEGRAPH-CABLE COMPANY (INCORPORATED) TRANSMITS AND DELIVERS THE WITHIN TELEGRAM SUBJECT TO THE FOLLOWING TERMS AND CONDITIONS: To guard against mistakes* or delays, the sender of a telegram should order it REPEATED; that is, telegraphed back to the originating office for comparison. For this, one-half the tuirep.ted telegram rate is charged in addition. Unless otherwise indicated on its face, THIS IS AN UNREPEATED TELEGRAM AND PAID FOR AS SUCH, in consideration whereof it is agreed between the sender of the telegram and this Company as follows: 1. The Company shall not be liable for mista'kes or delays in the transmission or delivery, or for non-delivery, of any 17NREPEATED telegram, beyond the amount received for sending the same; nor for mistakes or delays in the transmission or delivery, or for non-delivery, of any REPEATED telegram, beyond fifty times the sum received for sending the-Sante, UNLESS SPECIADLK VALUED-; nor in any case for delays arising from unavoidable interruption in the working of its lines ; NOR FOR ERRORS IN CIPHER OR OBSCIITIle'VELEGRAMS. I. In any event tret °tympany shall not be liable for damages for any mistakes or delays in the transmission or delivery, or for the non-delivery of this telegram, whether edified by the negligence of its servants or otherwise, beyond fifty times the REPEATED telegram rate, at which amountthis telegram, if sent as a REPEATED telegram, is hereby valued, unless a greater value is stated in writing hereon at the time the telegram i8 offered to the Company for transmission, and an additional sum paid or agreed to be paid based on such value equal to one-tenth of one per cent. thereof. S. The Company L3 hereby meide the agetit Of the sender, without lia7blltty, to forward this telegram over the linee of any other Company when necessary to reach its destination. 4. Messages will be delivered free within the established free delivery limits of the terminal office. For delivery at a greater distance a special charge will be made to cover the cost of such delivery. I. No Felponsibility regarding messages attaches to this Company until the eame:are presented and accepted at one of its transmitting offices; and if any mesaagedesent to such office by one of this Company's messengers, he acts as the agent of the sender for the purpose of delivering the message and any notice or mstruetio,' -legardiWgItifddiT,Company's agent in its said office. & Tlik_i,mpany shall not be liable for damages or statutory penalties in any case where the claim is not presented in writing within sixty days after the telegram is bled with the Company for transmission. 7. The above terms and conditions shall be binding upon the receiver as well as the sender of this telegram. & NO EMPLOYEE-OF-THIS COMPANY IS AUTHORIZED TO VARY. THE FOREGOING. ..... ADAMS, VICE-PRESIDENT. CLARENCE H. MACKAY, PRESIDENT EDWARD REYNOLDS, VICE-PREST. AND GENERAL MANAGER. CHARLES P. BRUCH, VICE-PRESIDENT. THE FASTEST TELEGRAPH SERVICE IN THE WORLD OPERATOR'S NOTATIONS, .TrKE S5r4T, Etc. if t- /1( 91%---7(11 11 ,7 11- 14 /44111 STREET MARI r171317* 434'74 Cri-f(,(N \olt f liwiret" 2 -*c Oat-ez ivi/fiwt_ j-cc4-t LL E /i ear-LUC do- iZZ 4.--4 (IL--.-74. Jot() (IYA. /Ltitc-t, 4..( 4...L-0 ;1.-*---4J 43 £.07ir ) L 1L0 11,, y-.1--_9-eL7/ //VA". J7 k 71-T PC) 0 p, tv-tr_Lc 45 0 , r3 _41-5s)(-- Zt- /iL I :,L:t v4-A.-LA. FEDERAL RESERVE BANK OF NEW YORK rch 16, 1917. My dear Governor: I enclose herewith a draft of a letter Which has been prepared in the bank, after considerable conversation to-day and yesterday with 7::r. Warburg, who was here. It presents a comrosite of his views and those of Messrs. Trenan, Jay, Peabody and myself. You will obser omitted -os. 5 and 6 of your draft, as we were not quite clear what the scope of the suggestions might be considered to be by the Banco de la Nacion Argentina, nor exactly what advantages would accrue from including then. Possibly, if necessary, they could be taken up at a later time in the negotiations, if you think they are important. We have also added a qualification to your No. 2 in order to make clear that we do not wish to compete with the commercial banks in ordinary commercial transactions. That would you think of omitting Ito. 2 entirely and merely suggesting the possibility of handling items for collection and thus open the subject up-for discussion, without making any tentative offer? As to No. 3 (e), further consideration would seem to indicate that this ought to be in the nature of a general remark pnd not be a subdision of No. 3; also that perhaps we should not offer to take custody of gold for a consideration, unless we make the offer as a separate suggestion to go into effect only if the general reciprocal and mutual arrangements are not entered into. As to No. 4, T1r. Warburg's thought seems to be that the principal profitable exchange business for our member bank branches in the Argentine will consist of arranging credits and getting the commissions, rather than ..ERVE BANK OF NEW YORK Benjamin Strong, Esq. in purchasing bills of exchange, and consequently that we could go into the exchange market and buy long bills there without creating competitive conditions. In fact, he thinks that the public knowledge that "dollar exchange" was eligible for purchase by our Federal reserve banks and would be purchased there by them on occasions, when necessary, would assist our member bank branches in establishing dollar exchange. He felt, however, that we would, of course, use this judiciously and only when fair rates were not readily obtainable in the Argentine for dollar drafts. With respect to the mutual indorsement of the bills purchased, we are wondering what your views are as to whether we would ever be required to purchase bills here for the Argentine bank, and if so, what kind of bills. In other words, would this requirement of our indorsement ever place us in an embarrassing positionl You will note that we have toned down somewhat the restrictive language of No. 4 by striking out the word "emergency," but to offset this we have inserted that the transactions in question should only be undertaken when both institutions are of opinion that the international situation between the two countries requires some action. As Mr. rarburg feels a little sensitive over the amount of time which has elapsed since his first suggestions to us were made, we would like to get your reactions upon this draft at the earliest possible moment, by Wednesday next if that is practicable, when we hope to have an executive committee meeting. Please excuse the somewhat sketchy form in which the draft is sent you, which is caused by our desire to save time. We would hope to be in a position to make up final letter after getting your views. VerY truly yours, Benjamin Strong, Esq., 4100 Montview Boulevard, http://fraser.stlouisfed.org/ 717R, COLO. Federal Reserve Bank of 90pp St. Louis Pyle. FEDERAL RESERVE BANK OF NEW YORK Wrir. CONFIDENTLAI wip,o t My dear Governor: 1911 V.7,1:_.!NO1 7?,DErtAt 'DEPT. 411 March 17, 1917. tittrtAlt D.Og There are a variety of matters which you probably would like to hear about which have been lying fallow for some while. In the first place, on the question of reorganizing the efforts of the officers of the bank I enclose herewith a memorandum which I have given to Messrs. Treman and Jay with the hope that we may possibly reform ourselves. I have been very anxious to get at this matter but the opportune time never seems to arrive, which, as you know, is one of the things which need most to be reformed. However, I expect next week, after the governors' committee on Federal reserve drafts has completed its labors, we can sit down and thrash this matter out. Ir. Jay has handed me your letter of March 2nd with reference to the way in which the gold bar proposition has been neglected, and I am preparing a report on this matter attempting to distribute praise and blame in an impartial manner. So far I have found no praise to be distributed. I think it is a case where you would be justified in enjoying a complete loss of td.me and doubtless you have already had that pleasure. iN I would like to get your reaction on the board's recent recantation of its French and English Treasury bill pronunciamento of last November. It seems as though they had now reversed their position completely under the guise of claiming that the public had misunderstood them. Joe Cotton told me yester- day, however, very confidentially that he was informed by a very "high" democrat close to the administration as positive truth that the President himself had -2 The system which in practice prevails, although known to be opposed to the theory of the office, is that the time of the other officers with whom a given one is conferring is less important than the time of the individual calling by telephone or in person. The senior officers do not organize their work so that the routine is disposed of early in the day and by a given time. The officers have not a proper "Concept of selective values." In other words, too great a proportion of their time is taken up with matters of comparative insignificance. The decisions reached by the senior officers with respect to the policy to govern detail operations of the bank should be transmitted through the cashier, with written memoranda, to the other officers interested. The circulating letterbook, containing copies of letters sent out the preceding day, should circulate. The only way in which I see this book, nine times out of ten, is by sending especially for it. The remedy suggested is to make the reading of the book a necessary preliminary to the JFC/CEP day's work of each officer. FEDERAL RESERVE BANK OF NEW YORK Benjamin Strong, Esq., 2 3/17/17. written or inspired that utterance of the board's, which, if true, might account for some of the subsequent squirmings. source of his information; Joe says he believes it awing to the and, of course, there is this point to be consider- ed - that Davison, I believe, had an interview with the President just before his interview with the board, so possibly there is something in it. With respect to the Banco de la Nacion Argentina matter, I am at a slight loss to understand the sudden turnabout of my associates. On February 27th our executive committee voted that, in view of existing international situations, it was inadvisable at the present time to take up negotiations with banks in countries other than England and France. rectors approved this action. On February 28th our board of di- However, the day before yesterday Mr. Warburg came to the office and was very anxious for negotiations to be begun with the Argentine and when I arrived at the conference I found everybody agreed that we must get a letter right off to them, apparently because 1. had felt hurt in his feelings that we had not taken any speedier action. I told Mr. Treman to re- mind him that our application for permission to appoint the Bank of England our agent had lain at the Federal Reserve Board's office unacted upon from August 29th till December 25th and that, in view of this delay, six weeks Consideration of the Argentine matter, concerning which you and he were in such disaccord on one of the principal points, did not seem to me very serious. However, we now seem to be engaged in bustling off a letter to the Argentine in spite of my efforts to have it delayed until it can be well considered, especially by yourself. We are calling an executive committee meeting for Wednesday to go over this matter, although I doubt if we can have your reply by that date. As far as I can make out after talking somewhat fully with 'Ir. Warburg, your views and his on the Argentine proposals are not quite so divergent as they appear at first sight. ris idea, apparently, is not so much to have the bills purchased there for our account as a regular thing but to establish the fact that we are ready to purchase them at a fair rate and thus, not only assist in 3 _ DERAL RESERVE BANK OF NEW YORK 3/17/17. Benjamin Strong, Esq., establishing a stable market but also in getting away from the situation where the agencies of our member banks deal in their own acceptances. If we could phrase this proposal in such a way as to tie it down to approximately that sug7estion, I think it might be all right. I urged that we ask the member banks in question (both the City Bank and the First National of Boston) how they would feel about it, but Mr. Warburg thinks this would be inadvisable, although he bases his argument on the statement of what he thinks would be for the advantage of the member banks. It seems to me that the easiest way to find out what their feelings of their advantages are is to ask them, and I hope we shall do this before the letter actually goes forward. What do you think of the Russian upheaval? It looks as thougA it was a great thing for the Allies and the cause of democracy generally. The President seems to be reaping, or rather the country is, the results of his surrender of last summer. Yours sincerely, Benjamin Strong, Esq., 4100 Montview Boulevard; Denver, Colorado. JFC/PE IrInc =torten= OF Direrms IN BM .0jtGATTIM'ION CONFI1VNTWe 1. There is a leek of proper distrnution of functions among the officers. nth the exoeption of matters similar to applications under the Clayton Act, the issue of Federal reserve notes and other activities which are by law placed upon the Federal reserve agent, there is practically no subJect in connection with the operation of the bank which is not from tine to tine 'handled by all the senior officers. Take as an exariple the following: The sale of French gold coin. On this natter work was being done simultaneously by ressrs. Treman, Jay, Curtis, 9aller and 7iggins. Investigation of best method of obtaining gold bars. ork has been done on this natter simultaneously by Mesere, Trenun, Jay, Certin and Cann. (0) Investigation of method adonted by lank of ?ranee in nUrchasine gold coins and bars. done on this rlatter simultaneously by 7essrs. Treman, Jay, Curtis, If/J.1er, Cann and Crane. (d) Method for inaugurating Federal reserve bank drafts. work has been dome on this eimultareOusly by 1.1essrs. 'fireman, 'Jay, Woodward, Curtis and Yendricks. 2. There is no method or system by which any particular matter will be automatically referred to any particular officer. 3. The senior officers de not delegate enough of their work to the junior officers. 4. !Then work or powers are delegated, they should be delegated with finality and the person to whom delegated should be held responsible for results.. 5. Conferences between the senior officers, as well as conferences between all officers, are remitted to be interrupted. (e) By telephone calls, 1. 6,4 °is/ tos2S FEDERAL RESERVE BANK OF NEW YORK March 20, 1917. My dear Governor: I have your letter of the 15th with reference to the Bank of France communication, and note your difficulties in fitting in the language used with the correspondence apparently at hand. You show a keen analytical sense and highly developed powers of deduction in the second sentence of your letter, in which you state that apparently the changes mentioned in my letter of the 6th, with the accompanying memoranda, could not have referred to the signed conies which you mailed to the bank on the 2nd. My letter is all very true. This of the 6th had re- ference to your draft of letter to M. Pallain and memorandum of agreement which accompanied your letter to 'Er. Treman of February 11, 1917, forwarded from Phoenix, Ariz., and consequently all of the references are to those documents. This letter Of mine was mailed on March 6th. of the final letter to M. Pallain and memorandum of agreement, which you say in yours of the 15th you mailed to the bank on March 2nd, appear to have been accompanied by a letter from you dated March 3rd, and in any event did not reach the bank until March 7th, just after my letter of the 6th had gone forward. As Practically all of the sugc-estions that I made on the 6th had already been incorporated in your signed redraft, which accomnanied yours of the 3rd, we adopted your letter and memorandum as it was, with only the slight changes that I think have already been indicated to you by telegraph and otherwise. If you have retained, as I assume you have, a copy of your FEDERAL RESERVE BANK OF NEW YORK 2. Benjamin Strong, Esq. 3/20/17. letter to M. Pallain, dated March 5, 1917, and marked "Registered," you will find that that is an exact copy of what was forwarded to him on the "Rochambeau" through the French Embassy pouch and on the "Monterey" by registered mail, except that at the end of the letter, on the bottom of page. 4, the following was added: We are advised that the French limit of tolerance upon abraded French coins is 1/10 of )(7, for one hundred franc pieces and fifty franc pieces, 2/10 of 1% for twenty franc pieces and ten franc nieces, and If our advices are 3/10 of 1% for five franc pieces. incorrect, paragraph 12 (e) should be changed in order to include a correct statement of what the limit of tolerance is." "P. S. If you have preserved a copy of the memorandum marked "Confidential" and entitled "Memorandum of terms and conditions suggested to apply to proposed relations between the Federal Reserve Bank of New York and the Banque de France," which accompanied the aforesaid letter addressed to M. Pallain, you will find it is an exact copy of what went forward to him by the two methods of communication above set forth, with the following exceptions: On page 4 of your memorandum, on line 5, the word "gold" has been inserted between the words "or" and "coin" making that line read "or shipped if other gold or gold coin is available." On page 5, line 6, the words "earmarked or" have been inserted between the words "be" and "shipped," making the line read 'which are abraded below the French limit of tolerance not to be earmarked or shipped." I hope this straightens out all your difficulties. Very truly yours' Benjamin Strong, Esq., 4100 Montview Boulevard, Denver, Colorado. JFC/CEP Ii Form 1201 UNION 1- CLASS OF SERVICE SYN ')L Message utter ...Mit Message Nito AM N I_ Night Letter If no of these three symbols fter the check number of appe symbol a npearing after the check. Day Message NEWCOMB CARLTON, PRESIDcNT Day Letter Blue Night Message Blue a day message. Otherword wise ifs character is indicated by the CLASS OF SERVICE SYMBOL Rite NL If none of these three symbols Night Letter appears after the check number of words)this is a day message. Otherwise its character is indicated by the symbol appearing atter the cheek. GEORGE W. E. ATKINS, FIRST VICE,RESIDENT RECEIVED AT 915-919 SEVENTEENTH ST., DENVER, COLO. ALWAYS B18 NY CP 118 NL - t NEWYORK MAR 22 1917 BENJAMIN STROALI3.4.47A/ 11.1 410-i) MONTVIEW BOULEVARD DENVtRtOter--- REPLYING YOUR TELEGRAM ON ENGLISH SIX IT SEEMS INADVISABLE TO be.22ii/J 0 MEMO TAKE FOLLOWING SUGGESTIONS CHANGE OPENING SENTENCE AND PARAGRAPH TWELVE OF WAR AND SUBSTITUTING A o.\, _\_ i3. BY OMITTING REFERENCE TO CONCLUSION DATE TO BE MUTUALLY AGREED UPON STOP PARAGRAPH HAVE EARMARKING GOLD DONE ONLY CONVENIENCE OF DEBTOR INSTITUTION INSTEAD AT OF A REQUEST OF CREDITOR SAME UNDER A GENERAL UNDERSTANDING AS TO AMOUNTS STOP PARAGRAPH TEN SUGGESTION AS ABOVE WITH RESPECT TO WORD VOLUNTARY STOP PARAGRAPH TWELVE UNLIOUIDATED BALANCES SHOULD BE SETTLED IN GOLD IN ANY EVENT ND NOT QUOTE IF SO AGREED END QUOTE STOP OTHERWISE CHANGES SEEMS REASONABLE STOP WE WILL USE CUNLIFFES LETTER AS ADDITIONAL ARGUMENT Form 1201 - VVESTE TEL BOL Blue 4iNsuN Nite UNION WESTERN UNION 11&" vtifir )1! NI throe symbols heck number of . nessage. Other.er ks indicated by the app ring after the check. NEWCOMB CARLTON, PRESIDENT CLASS OF SERVICE SYMBOL Day Message Blue Night Message AM Day Letter Nite NL If none of these three symbols Night Letter appears after the check number of GEORGE W. E. ATKINS. FIRST VICE-PRESIDENT words) this is a day message. Otherwise its character is indicated by the symbol appearing after the cheek. CE .IVED AT 915-919 SEVENTEENTH ST., DENVER, COLO. =Zs Ei18 NY, CP SHEET 2 TO OBTAIN WAIVER OF ASSAY OFFICE CHARGE FROM TREASURY DEPARTMENT J F CURTIS Po, MAR 23 130AM B;(7/6e_J FEDERAL RESERVE BANK OF NEW YORK APR2 191/ March 28, 1917. My dear Governor: I give below copy of a cablegram just received from Lord Ounliffe, which seems very satisfactory: "Answering your cable agree in principle to your three suggestions as we here understand them and beg you to mail proposals for consideration. If you have any suggestions as to phraseology to be used in the final draft of the proposal, please send them on without delay. Very truly yours, ' enjamin Strong, Esq., 4100 TIontview Boulevard, Denver, Colo. JFC/CEP FEDERAL RESERVE BANK OF NEW YORK March 26, 1917. MAR2 9 1917 My dear Governor: I meant to write you a long letter to-day also yesterday, and possibly the day before - but haven't seemed to get around to it. I enclose herewith a copy of cablegram which is going forward this afternoon to Lord Cunliffe and hope you approve. Yours sincerely, Benjamin Strong, Esq., 410n Montview Boulevard, Denver, Colo. JFC/CEP Enc. FEDERAL RESERVE BANK OF NEW YORK -arch 30, 1917. y dear Governor: I enclose herewith the changes which we are proposing to suggest to Lord Cunliffe in the final draft of the memorandum of agreement. -ill you please telegraph if this language meets with your approval. If it does not, please tele- graph any additional suggestions. Very truly yours, Benjamin Strong; Esq., 4100 lIontview Boulevard, Denver, Colo. J3C/CEP Fnc. Change opening paragraph to read as follows: The following points confidentially and tentatively agreed upon for submission and ratification by the respective institutions with a view to being put into operation when mutually convenient:/-0( t (railw-s 6. GOLD. : Subject to such limitations as may have been agreed upon under the provisions of clause 10, and as below stated, the debtor institution will, at the request of the creditor institution, set aside and earmark gold on po,,,0 ,bullion basis representing balances due, such gold to be clearly identified as to ownership. dac,r,izt / 0 "8 Iree0-7-v-r : 10. The intention of the arrangement is that all transactions in gold (other than earmarked gold) between the two institutions shall be upon exactly equal terms as to each, provided that either party nay limit the amount of its obligation to earmark and set aside gold,and/or to settle its debit balances in goldlto definite amounts for definite periods,in advance. In the absence of the establishment of any such limitation, all balances shall be settled in gold, if desired by the creditor institution. /2. a_4( vqp-e6r,,x 12. This arrangement is to be subject to cancelation by either institution, in whole or in part, except as to transactions in process, on notice by letter or cable; it being understood that subject to tions as may have been agreed upon under the provisions of clause 10, any unliquidated balance either way will be settled in gold, if desired by the creditor institution. FEDERAL RESERVE BANK OF NEW YORK 4,01 ot,: 191744. CONFIDPNTIAL t 6F;Y;11117. My dear Governor: I enclose herewith a copy of the programme for the governors' conference to be held on April 4th in Washington. If you have any sug- This programme has been somewhat. gestions to make, please let me know. hastily arranged owing to lack of time. You will note 17o. 15, Foreign Arrangements. My view is that the. time has arrived for us to tell the governors the exact status of our various foreign proposals, giving them copies of the agreements that are in process of negotiation, with the request that they obtain from their boards of directors authorization to advise us whether, and if so for how much, they desire to go into the proposed transactions. r!e have got to make the plans Some time and it seems to me that our arrangements are now so near completion that we night as well take the others into our.confidence, even though it includes having 144 people know the exact terms of the proposed contracts. Of course, it would be done under a stri8t nledge of secrecy and confidence. 'Till you let me know whether you think this is wise and if not, what you would suggest in its place. I understand that 17r. Trenan has already written you fully about the 2 ninety-day certificates of indebtedness, which Mr. Mei:do° wished upon us. Our board of directors, while desiring to comply with the re- quest of the Government, felt very strongly that this was not a proper.way to have the financing done and agreed to so exnress itself in a preamble and resolution. I enclose herewith what night technically be called the ...YERAL RESERVE BANK OF NEW YORK 2 Benjamin Stron7, Esq. 3/30/17. rake's progress, indicating the various forms in Which this resolution evoluted from the somewhat snappy and straight from the shoulder legal form of 7r. Locke through the various stages of diplomacy and smoothness, as shown by its final rhythmic measure. I think the point to make is pretty well set forth in language that will not tend to rile the Secretary unnecessarily, but I believe it was very necessary to make the point, especially in view of the fact that the newspapers seem to indicate that we are to be asked to subscribe to 50,000,000. more in a I have your letters. of March 15th, 21st and 26th, none of which have I answered. In the matter of handling the gold bars, I have completed my labors and made a report which has been handed to Messrs. Trenan and Jay, and of 46-4vFl- I:very day we are proposing to get at this matter, as well as the general reorganization of the office and the functions of its personnel, but we haven't yet got around to having any definite results in this regard. The Bank of ngland matter seems to be moving very smoothly and by the end of the week I think we ought to be able to put all counter proposals in definite form for going forward- I have been spending a little time running down the contract which 77essrs. A. Iselin & Company have made with the Carranza government for the purchase of gold and having it coined at the Philadelphia Mint to the extent of "!'10,000,000. worth, which we were asked to look up by our friends in Wash- ington owing to the fact that a man named Stallforth was mixed up in the transaction. Stallforth is a German who was in with Rantelen on some of the passport frauds and other German activities over here. However, -7rnest Iselin tells me Stallforth has really very little to do with this mat- ter, their principal outside negotiator being a man named Osterheld. ,..7,DERAL. RESERVE BANK OF NEW YORK 3 Benjamin Strong, Esq. 3/30/17 If you know anything about these men or this proposition, let me know. have man then down pretty well here and think I know the scope of their activities fairly closely. As Iselin & Company keep complete control as to the disposition of the money when minted, I think the transaction is perfectly safe. Sincerely yours Benjamin Strong, Esq., 4100 Montview Boulevard, Denver, Colorado. ( 4,66.4 (,4-6(1. ()& JFC/CEP ","ncs. FEDERAL RESERVE BANK OF NEW YORK March l, 1917. ceived from J. F. Curtis, Counsel o the Federal Reserve Bank of New York, a document purporting to be the minutes of a meeting of the Executive Committee of the National Industrial Peace Conference held in the City of Washington on July 31, 1915, with the signatures indorsed thereon of H. Robert Fowler, Chairman, and H. B. Martin, Secretary; to be returned upon request. Executive The luaileg.Ifinciel committee elected at the convention of the National Industrial Peace Conference held in the City of Washington on July 31st, 1915, at which were present the representatives and delegates of the Farmers' National Grange, National Society of E4uity, National Farmers' Union, including five million organized farmers, and delegates re-presenting the central labor bodies of the principal cities in the United States, comprising two and one-half million members, in pursuance of the instructions contained in the resolution of the National Industri- al Peace Conference creating the Committee, and acting under authority therein conferred, does hereby make the following report and recommendations: Continuance of the -European war means a most tremendous catastrophe to civilization and humanity. The best energies and efforts of all should be exerted to stop it immediately. The war is being kept alive to-day only by the United States pouring in on a transcendently great scale all its resources in and money, war supplies, food, clothing, transport animals /vessels. All this is being done at the behest of the overlords of the great criminal trusts which for years have afflicted the country. To break the strangle hold of these vultures and bloodsuckers upon the financial resources of themuntry, and to destroy their malign influence, now forcing our people day by day along the bloody path of slaughter and desolution, will require direct action by the people at large. PRES= CONDITIONS The committee has absolutely convincing proof that a group of men now in control of the great trusts' conspiracies, headed by members ofthefirm of J. P. Morgan & Company, who are and have been for years past robbing the people of this country of several millions of dollars a day, are in possession of contracts for war materials and supplies of various kinds from the governments of Great Britain, France and Russia, on a scale so transcendently enormous as to guarantee to the contract mongers a profit of more than four hundred millions of dollars, and that in return for these contracts and the profits flowing from them, the masters of the great trusts' conspiracies have entered into undertakings to obtain loans of money from the banks of the Federal Reserve System for account of 1-eat Britain and her allies, to the amount of, at least, a billion and a half dollars. By various devices and juggles these contract mongers have already extracted from the banks in the Federal Reserve System more than five hundred million dollars, and are now making sedulous efforts to secure immediately, at least, an equal additional amount from the national banks embraced in the Federal Reserve System. The Federal Reserve Board, Sei3e#ay-4).4".-414e-ga,eagiapy-a144-Gem- t,vol;44-4) -411(4-41,1,pPRey not only refuse to put a stop to these transactions, but a.11-4)-f-44em exhibit a willingness to allow the entire money and credit resources of the banks in the Federal Reserve System to be used without limit in furnishing money for use in buying munitions and supplies by which the European war is fed and kept alive. The Federal Reserve System was designed and organized by Congress for the express purpose of destroying the Morgan money trust power. Nevertheless, this same sinister power still exercises an effective control over the moneys and credit resources of the people, as embraced in the Federal Reserve System. Complete evidence of this may be found in the conditions which obtain in the Federal Reserve Bank of New York. The Governor institution is Benjamin Strong, Jr., who up to the time of his election as such was President of the Bankers Trust Company-of New York. This concern, with resources of '210,000,000. is a citadel of the Morgan money power, and no man could be its president except he did the absolute bidding of Morgan and his allies. Before the Congressional Committee investigating the money trust H. P. Davison, a member of Morgan & Company, testified that the Bankers Trust Company was controlled by a voting trust managed by Morgan & Company. That the Morgan money trust power completely dominates the Federal Reserve System to-day is well evidenced by the fact that a man like Strong got to be governor of a Federal reserve bank holding onehalf of the total moneys of the system. Since the beginning of the present European war there has been added to the public debts of the European governments the sum of over twenty-five billion 4 dollars, and this debt is increasing at the rate of seventy million dollars each day, a condition that spells but one -3- result - bankruptcy of the warring European nations, and, as things now are, the bankruptcy of the institutions in the Federal Reserve System in the United States, because the proceedings of Morgan and those acting with him now being carried on with full concurrence of the officers of the Government, will create a condition in the national banks and the Federal reserve banks resulting in these institutuons having practically their entire lending resources tied up in loans to agents of European governments, whose bankruptcy past inevitably occur in the very near future. A high principle of international law forbids a neutral coun- try from furnishing in time of war aid in money to belligerent governments. Should the present policy of the banks in the Federal Reserve System be continued such conditions will inevitably subject the United States to the payment of an enormous indemnity of probably more than a thousand million dollars. Certainly should the question of such an in- demnity be referred to an international court of arbitration the decision would be adverse to the United States, largely because of the contentions advanced by our own government in the Alabama case following the Civil War, which were upheld by the international arbitration court, and, at the instance of our own government, written into the body of international law. The foregoing constitute a truthful statement of conditions as they are and of what the country may look forward to if the money trust power is permitted to continue in their foul work of feeding and keeping alive the European War. The people of this country, peace loving and animated by an all-pervading desire to keep this country out of war and see our nation take the load in bringing peace to the war distracted nations of Europe, are confronted with the necessity of striking directly at the heart and eourse of the one great influence and power which aims to defeat these Purposes. By direct action of the people alone can the money trust power exerted over the banks in the Federal Reserve System an4-144'e-41asupaRag eQw13a144es be destroyed. The accomplishment of such a task would be a Jerk great in fruitful good to humanity and civilization. The National banks in the Federal Reserve System are using 0 your money deposited in their hands to enable the warring European governments to purchase in this country munitions of war, which kill each day many thousands of human beings. You can stop this at once and see to it that the moneys of the people deposited in banks are applied to benign and peaceful purposes for the benefit of the masses of the people. The most crying need of the day in this regard is the furnishing and creation in each State of a rural credit system, by which the farmer may obtain from banks operated under state charters loans upon reasonable and fair terms, the objedt of such loans being to facilitate and encourage a healthy increase in farm ownership and production, thereby cheapening the cost of living and encouraging a very great legitimate interest. This committee recommends as follows: TO ALL AMERICANS, REGARDLESS OF SECTION OR PARTY, -WHO DESIRE TO END THE PRESENT WAR IN EUROPE AND :::,.1,11TAIIT AN HONORABLE PEACE WITH ALL NATIONS THROUGH THE FIRM AND IMPARTIAL MTFOROMENT OF OUR EXISTING NEUTRALITY LAWS: You are advised to immediately take the following action: Withdraw any personal deposit you may now have in a national bank, and redeposit same in a bank operating under state charter, whose officers will pledge themselves to remain free from any affiliation with war mongers or their undertakings. Revest the officers of your savings bank to withdraw any savings bank moneys on deposit with a national bank and redeposit same in some solvent bank operating under state charter, whose officers will pledge themselves as indicated herein. Communicate personally or by letter with your City, County, and State Treasurer, requesting each of these officers to draw out any moneys now on deposit with a national bank and redeposit same in some solvent bank operating under state charter, whose officers will give a pledge as herein indicated. Resolutions adopted at the National Convention of the Farmers' Union at Lincoln, Neb., Sept. 9, 1915: Whereas the Wall Street banking agents of warring European powers are securing the aid of Federal reserve banks throughout the United States to .help them finance loans of hundreds of millions of dollars to these -5- nearly bankrupt belligerent governments, in gross violation of international law and involving the peril of the most disastrous financial panic and loss for this country; and whereas this is a warning to our people of the gravest danger to the financial safety of the United States and a gravely added danger of involving our country in the European war, and whereas the glaring contrast afforded by this Federal Reserve System proposing to loan 500 million dollars to wild war speculation and a poor 30 million dollars to move the billion dollar 'cotton crop of the South, is so striking that it must be clear to all that this Federal Reserve Bank System as now organized furnishes no equitable aid-to the farmers. There- fore to the end that we may cause the early adoption of a better and more equitable system; Resolved that we recommend that the vast body of our people who favor peace and who need this money here in the United States for handling the legitimate business of Agriculture and Commerce, should transfer their deposits from Federal Reserve System banks to state banks who will pledge themselves to allow none of the banks' or the depositors' money to be used in the unlawful and most dangerous business of financing foreign wars between other nations. 'Resolved that we empower and direct our national officers and national executive committee to confer and cooperate with the committees of the Uational Industrial Peace Council, and the various other agricultural, industrial, reform and business organizations of the United States who favor keeping the United States out of war and bringing the calamitous war in Europe to an early close; with a view to devising the most effective means of quickly ending the war and securing a universal permanent peace. Resolved that we hereby recommend that all friends of peace oppose the election to the office of President, Vice-President, Senator or Representative of the United,States any candidate 174ho refuses to vote and pledge himself for the Government ownership exclusively of all arms and munitions works and forever put an end to private profit in the makIng of any of the instrumentalities of war within the United States. . RF FEDERAL RESERVE BANK OF NEW YORK March 31, 1917. Dear Gov: As you are possibly not a subscriber to that estimable sheet now run by 77r. prank A. NUnsey, I take pleasure in enclosing herewith copy of an article appearing in to-day's issue, and invite your particular attention to the parentage of the plan for annointing the Banksof rngland and France representatives of the deralBeserve System. In connection with the trial of Messrs. Buchanan, Monett, Fowler, -artin, et al.. I had a chat with United States Attorney -71-shal1 the other day, who has asked us to let him have the signed copy of the minutes of the meeting of the executive cmmlittee of the National Industrial Committee's conference, which I am accordingly doing. This trial is set for Anril 16th and I believe ought to be one of the most important of the trials against the pro-German sympathizers. Sincerely yours, Benjamin Strong, "sq., 4100 Montview Boulevard, Denver, Colo. JPc/c117, FEDERAL RESERVE BANK OF NEW YORK April 3, 1917. APR9 1917 Dear Governor: I enclose herewith a copy of the final draft of letter to the President of the Banco de la :Taejon Argentina, -hich I understand T7r. Trenan is signing and sending forward to-day, accompanied by a Spanish translation which !Ir. Warburg has had made. The latter is letter to Mr. De Iriondo, which will go forward at the sane time. I hone that the restrictions placed about Mo. 4, on pages 2 and 3, will appeal to you as being sufficient protection against interfering adversely with our member banks. We are off this afternoon to the governors' conference. Wasn't that a fine message? Yours sincerely, Benjamin Strong, Esq., 4100 Montview Boulevard, Denver, Colo. JFC/CEP inc. Form 1201 %SS OF SERVICE SYMBOL oy Message Blue Night Message NL .t none of these three symbols appears after the check number of words)th is is a day message. Otherits character is indicated by the symbol 'wise appearing after the check. NEWCOMB. CARLTON, PRESIDENT GEORGE W. E. ATKINS, FIRST VICE-PRESIDENT SYMBOL Day Message Day Letter WESTERN UNION Nite Night Letter WESTE0/3,sm UNION TEL AM CLASS OF SERVI CF. Night Message Night Letter If biae Nile NL none of these three s appears after the check number of words)this is a day message. Otherwise its character is indicated by the symbol appearing after the check. RECEIVED AT 915-919 SEVENTEENTH ST., DENVER, COLO. =ZS YSQ 1LZaOD ;.$ 4 TXLJ re"' Q NEYORK NY 341P APR 3 1917 MIN STRONG . 4100 OW-VIEW BLVD DENVER COLO ELEGRAM RECEIVED JUST LEAVING FOR WASHINGTON TO DO NOT THINK r NECESSARY OR ADVISABLE FOR YOU/COME ON NOW SUGGEST OUR wimITING TILL AFTER WASHINGTON CONFERENCES ARE OVER JAY WILL TELEPHONE YOU THIS EVENING J F CURTIS 212PM .v1is 74° ", f/V) 7/1 -1 aae lit-44 a 6eA-'4.,4) tv-4_4-#&,1)T t4-a--1,L6L Q-15 LA._ ij);"4,4ke /36-4(i tr---4.,Y ede LI/ 't 76-0 6/11 Le6 dzi et- ijji 0-/_,2/, Z-74) LiL c4-- d -eer ,/ e-',A%- e P,ALK-2-4. L,--f 401 4.-7 fr -441 A-- e A}_e - Ft-4 ezrA 2,s, r 74,L A../7-/e lit Kt 01 ettY LtA_ t<t.16 / e-4-((--)< C 0 P Y(handwritten letter) Shoreham, Apr.4,6 PM 114 Dear jay _ Here we are still at it + not a dish washed, so to speak. Wold would like of you adrs. Van Z has telegraphed Ramsey to find out what he wants but hasn't 750 heard from him yet. We spent the whole morning with the Board. McAdoo handed out a crticism of our resolution on the 2% certificates + elaborated a defense of his actions. He then outlined in a general way what lay in his mind as to govt. financing which was discussed to a certain extent. Delano + Attebury have been with us for an hour + we are still discussing the collection system. I think sentiment is swinging towards going after the state banks by express, but no conclusions have been reached. Have not yet reached the topics of Fed. Res bank drafts ot amendments to the Act. We are to meet with the Board again at 10:30 tomorrow + I don't see any chance of an adjournment tomorrow. McAdoo asked for information as to whether the Reserve Banks would like to be offered the next $50,000,000 of short time ctftes, but he was called away from the meetinpl before he got the replies which were unanimously to the effect that they should be offered through the reserve banks but not to them. Everybody is here except Wells + Miller. Warburg struck me as very depressed. Delano says Strong has gained 29 pounds + seems to be in fine fettle. Sorry not to be able to report better progress. Yrs. JFC[Curtis] Form 1204 CLASS OF SERVICE SYMBOL Do y Message Letter Blue Night Message MIV1, NL If none of these three symbols AM 11.4,0ffl' .rs after the check number of up, w this is a day message. Otherwis, .s character Is indicated by the symbol appearing after the check. NEWCOMB CARLTON. PRESIDENT 9D BY 5L 4EX BENJ STRONG 4100 MONTVIEW DENVER COLO PRESENT PROSPECT FOR A FOREIGN 'MISS ION BUT APPRECIATE YOUR OFFER AND WILL KEEP IT IN OP CONFERECES JUST ENDED HAVE YOU SOME NEWS NEWY Blue Nile NL Night Letter If none of these three symbols appears after the check number of words) this is a day message. Otherwise its character is indicated by the symbol appearing after the check. M1C WASHINGTON D C APL 6 1917 A Day Letter TELEPHONS YORK 2545. DUP OF FONE MESSAGE ;ECRETARY SAYS THERE IS NO ND ISSUED OF SBVERAL STOP BILLIONS,IF SO WRITE US ORK STOP EVERYTHING PRETTY QUIET JIX CURTIS APL 7 SYMBOL Day Message ber BRANCH MICE, 2?0/ Id RECEIVED AT D CLASS OF SERVICE Night Message WESTERN UNION Nite Night Letter 11P1111, OaNA UNION nk- 905 AM LT 76-_ akt, 7 LLE ) 441,, (=afre7 L APR]. 0 1917 r7Z_ ) 0-& - e 4-e )( cet 2 e erA A /v/r-x.--t zv-rE-14 (rt. 44k e- k* U C4,4_117 1 9"-4- c4214-4,/,( / /..JeA t,//t4 41, kr`e 74-1- clee , a j_e_ALe-le-m4 3 4_, /J-2-(- 4FJL C' ,2J W<7- / Art _ 31 Ar-4 ,4° a'q krra 144 tt,c Ja za< C°4-2e 70( 4 Ae_.,/ \Of2.1 4,4 6-d t cz_c_ QC' 4Le ifeA, - ( -7115 4, /t-t- it L. 4, A-- A...46 r,%, a 7L,Y&A 4-,Zes- 7( Sc--- to-4 v i nr1,1 d-)e 7/7 0_4[/?( - `q))Y s-1" Cre <ye c lec.. 0-z-, X, s Fietp ,e 71cetk /-; -9(1- 4c_ 7ft_t (L et" /4 z,_-/)( 74' 1-4 i,J7j( 2)1-- ei, /4-171 r_d_ .7( 4 1, 141,-: \ /e (-7 6 at_ _ 7-- /-7 t"- 7/& J-00/ coo, 4 It Z-7,/- A47?-d a_ ,)-v-x-,( prz,AA-V .< April 7, 1917 Dear Gov. It took me 20 hours to get in to see McAdoo, but I finally did and telegraphed the result last night. He seemed quite confident that everything would be arranged on this side, but I think he may well be mistaken. He appreciated your offer and will carry it in mind. We spent a good part of our time discussing, at his request, the proposed bond issue which he intimated would be for between 2 and 4 billions. I enclose herewith a memo which represents the general views of the Governors in this regard. McAdoo said one thing which I think is very foolish, i.e., that he was firmly convinced that the price should not be offered flat, but that there should be tenders for price as well as dmount. I think with an issue of this size this would be a terrible mistake as either (a) there would result enormous confusion or (b) which is more probably) nobody would feel like bidding a premium and the country would be in the rather sorry position of having asked for a premium and had it turned down. The other points of infortance were the rate -- McAdoo apparently himself being in favor of around 3 1/2%, though saying there was a strong sentiment on the hill for 3%; the convertibility, on which M. was all right, but again he thought the Congress might balk; the method of handling, ie., making all of the Reserve Banks as the only direct fiscal agents of the Government, where he seemed favorable but lukewarm; and the handling of the actual payments on subscriptions. This the Governors found the hardest nut to crack, as the amounts will be so large that everything will get thrown out of gear unless' great care is used. Do you think it would be wise to leave this money on deposit only with members of the Federal Reserve System? I am incl view, though, of course, in the case of non-member banks and trust companies we would be asking them to work like dogs on a piece of work, the net result of which would be to draw their deposits out and put them into their nearby rivals. However, of course, they have the remedy in their own hands by joining the System, and I believe that this discrimination (which seems to me entirely justifiable on sound banking principles) would act as an additional lever to the wavering patriotic impulse of the better State banks and trust companies and bring them into our midst. What say you? Please give your best thoughts to these problems, as there will be plenty of time to do things even after McAdoo makes his recommendations as the House and Senate will, I think, Want to be enlightened on some of these fiscal matters. Incidentally, McAdoo told me that he couldn't publicly write the big bankers and financiers to confer with him, though he is anxious to get their views, because then the politicians on the hill would howl that the Bankers had arranged a high rate to suit themselves and get the profit and had taken McAdoo into camp. He said it was already intimated here that he was the friend of Wall Street!( I only smiled -- not laughed.) So I said if he fe a method of getting the views of the bankers quietly without their coming to Washington, and he replied that he wished I would see some of them and explain the political situation of which he is afraid and get their views as best we could, which will begin to do on Monday. McAdoo said that he did not think there would be immediate action on this matter, At the but he was anxious to have the public mind prepared for a good big issue. of the Governors McAdoo gave a ver conference yesterday afternoon with about 7 good talk on the seriousness and bigness of the undertaking we are starting on, the necessity for sacrifices and economy, especially in the matter of waste of food, etc., and that the people must make up their minds to universal liability of property se service as well as military and outlined some good stiff increases in the income taxes as well as lowering of the exemption to $1,500 or 31,000. It was a very good -2- speech and I must say showed insight, imagination, and a high conception of obligations. Everybody concurred in the necessity for financing a large part of the war by taxation, though I donft think the rest go quite so far as you and I do. It seemed to shock McDougal to hear me suggest taking 50% of incomes of over $500,000, for example. But I think we will come to it, and probably the figure will be lower than $500,000. Now a word on personal matters. First as to yourself. You ought not to come on as yet. Great calm prevails and there is no present financial distrubance in sight. We will keep you thoroughly polsted as to events. If you came on now, you would likely get exhausted before the real problems break on us and thus do both you and the Bank, not to mention the Government, a great injury, by being out of commission when you are most needed. So just keep your shirt on for another seven weeks. 2nd as to myself. As you know, I have a (customarily) vague feeling of desire to take a more artive and less sedentary part in this conflict. On the other hand, no one knows better than I do that I'm getting a trifle oldish fat, and short of breath and that at least for the present it is clearly my duty to stay and help the Bank get into shape for handling the vast sums that will pour in through the N.Y. District. But that won't last forever, and I want to be looking ahead a bit. Let me know what thoughts the clear mountain air brings you. Best wishes for a Happy Easter. Yrs. J. A. C. FEDERAL RESERVE BANK OF NEW YORK 6/9/i April 9, 1917. My dear Gov: I enclose herewith a copy of a letter I an sending to-day to Secretary McAdoo, which explains itself. Those present at the meeting were "essrs. Vanderlip, Davison, Banks, Farris, "urphy, "itc'nell, Alexander, Jay of the Guaranty Trust Company, Jay and myself. 7r. Jay has just received your let- ter on the subject of Government bond issues, and we note that you concur in most of the ideas contained in thispenorandum except as to having the bonds tak exempt. I have also received your letter of recent date, which I will not attempt to reply to in detail at the present time owing to the lateness of the hour. Portions of it have already been anomered by my handwritten letter from 7ashington of last Saturday. I will write you more fully to-morrow. Yours sincerely, Benjamin Strong, 7sq., 4100 Mont view 7ou1evard, 7.enver, Colo. JFC/CEP Enc . FEDERAL RESERVE BANK OF NEW YORK 7ERSONAL April 12, 1917. My dear Gov: I feel much distressed at having failed to answer the variety of your letters for the last ten days, but circumstances over which I have but slight control have interfered. I have read with much interest the treatise which you forwarded to the Secretary of the Treasury on the matter of budget making, which is extremely good. I hope he has time to read it and act upon it, but I am afraid budgets and other such-like dry topics will all go whistling down the wind for some years now. However, I have requested the Institute for Government Research to send you as soon as possible the first of the series of books concerning which I spoke to you, which is entitled "The Financial Administration of Great Britain," and is prepared by Willoughby, 7i1loughby Lindsey and published under the auspices of the institute. Doubtless you will find all of your views fully sustained in this book, which I hope you will read with pleasure And profit. Affairs at the bank move forward with a certain acceleration of pace but not as much as you would think. I wrote you concerning our conference on bond issues, the only result of which so far has been an indignant wail from Mr. Jacob H. Schiff to Mr. Jay, plaintively and indignantly inquiring why his firm was omitted when we were having the conference. 7r. Jay spent some three-quarters of and hour in pacifying the old gentleman yesterday afternoon and exnlaining to him that it wasn't much of a conference anyway. tary has not yet been acknowledged. 7y letter to the secre- FEDERAL RESERVE BANK OF NEW YORK Benjamin Strong, Esq. 2. 4/12/17. We are about to try to get conversion 3s added to the list of bonds which are to be included with the new issues at 3 1/2% or higher if higher rates are got out during the war, but I don't think we shall have any success in this regard. Of course, our plan would include only the conversion 3s to be subsequently issued, as everybody must concede that bonds that have already been sold have passed under the bridge and should not be considered. Last night Mr. Vanderlip had a dinner at the Metropolitan Club for the prrpose of bringing together the directors and officers of this institution with the Clearing House Committee. All the committee were there and also all of our directors except Mr. Locke, and also Jack Morgan and Alexander. We had a very agreeable dinner and all hands agreed that it would advisable to have stated meetings between the Clearing House Committee and the reserve bank directors or executive comnittee for the purpose of conferring on topics of vital interest to the banking community, and that these should begin now before any troubled times appear, so that no comment will be caused by such cooperative meetings being known. Our new director, Mr. Saunders, made a suggestion that before -such an arrangement be made it would be advisable to consult with Washington. Vanderlir said, "That is very interesting. Why do you feel that?" to which Saunders renlied that he felt that his boss was in Washington, which had rather a startling effect on the rest of the company, and we spent most of the balance of the evening in trying to dispel that impression, I think with some success, but the episode was very entertaining. We did not have time to talk very much about the bond issue. What do you think about limiting the depositaries of the money collected to members of the Federal Reserve System? bated at the present time. This is one of the points being chiefly de- my view is that it is not an unfair discrimina- tion and is one that should be made, as the Government has no control over FEDERAL RESERVE BANK OF NEW YORK Benjamin Strong, Esq. 3.. 4/12/17. state banks and trust companies that are not members, and while it would perhaps lessen their ardor in disposing of the bonds and getting subscriptions, still it might be a sufficient inducement to result best ones over the line into the system, in bringing some of the on the basis of an enlightened self- interest coupled with patriotism. Mr. Jay suddenly decided to go to Washington to talk with the Reserve T3oard about amendments and also other matters, including bond issues and the rractice to be adopted by the bank in discriminating against acceptances bearing German names. Our present plan is not to purchase any ac- ceptances that contain any evidence of having been owned by or used for the benefit of any German institutions or persons. Of course, this question only affects very few of the bills we buy, principally the ones from South America, but I think our practice should continue as above outlined and it will do so unless there is some objection raised from Washington. Jay is going to try to get a copy of the British bladklist from Sir Richard Crawford, which we can use for our guidance. I note that your sons are becoming more bloodthirsty than I ever have been, and I guess you won't either be able or have an inclination to restrain them. Dr. Alexid Carrel says that the present generation will not see the finish f the war. He has just returned from France and ought to know what he is talking about but I hope he doesn't. It seems to me the war will finish within a couple of years now, because after the submarine campaign fails, as it seems to be failing, the people of Germany will gradually wake up to the fact that the odds are too heavy against then. So far I haven't allowed my war-like spirits to take complete possession of me. The most that I have done is to join a college men's training corps, which is to hold drills and lectures and give instructions for super-educated, otherwise ineligible, individuals, two or three evenings FEDERAL RESERVE BANK OF NEW YORK 4..._ Benjamin Strong, Esq. 4/12/17. I went to the first lecture night before last and there were seven- a week. hundred men there, much to my astonishment. We learned that there were three sorts of discharges in the Army, not counting:those when a bomb goes off prematurely. We also learned a lot of other relevant facts, all of which I have no doubt are useful. We have inaugurated a drill at the bank, which seems to work pretty well. Then the gong rings, everybody takes his proper station and nobody gets shot; the main vault is closed in two minutes after the money counters' cash is put in, and the auxiliary vault is closed in four and a half minutes after all the money and securities from up-stairs are put in. During the course of these four and a half minutes no place could be more unsafe than the main floor, as there are fifteen men with revolvers and four with rifles in the mezzanine ready to victimize the unsuspecting intruder or some of the more unpopular of the officers. However, in order to insure greater safety for ourselves, all those who have revolvers and rifles and don't know how to shoot are being taught at the 71st Armory or some other safe place. I an glad to hear you boast a little bit about your golf!. That not only means returning strength and vigor for you but a steady incone of dollars and golf balls for me, and I-welcome it accordingly on both grounds. Foning you are the same, I remain, Sincerely yours Benjamin strong, 7sq., 4100 T'ontview Boulevard, Denver, Colo. JFC/CEP P. S. --- Since writing the above your two letters of April 9th have come in. FEDERAL RESERVE BANK OF NEW YORK 5 Benjamin Strong, Esq. 4/12/17. I see in your long one you cover most of the points about the bond issue. I am sending it to Aiken, who is going to Washington on Saturday to be there a week with his wife and children and who is going to take up these matters again with the Board and the Secretary and keep us advised. J. F. C. FEDERAL RESERVE BANK OF NEW YORK April 23, 1917. Dear Gov: I have your note of April 18th, enclosing communications to and from Jimmy Logan, who by the way is a major and not a captain. He seems to have been about as accurate on your title and occupation as you were on his. I have also had a letter from Logan concerning various ones of these French officers who are coming over to teach at Harvard and other places, and will endeavor to get in touch with them. Major Adzan, however, went right through New York to Boston and so I have not been able to see them as yet. I had the good fortune to see the British commissioners arriving in Washington yesterday afternoon, although I did not have an opportunity of meeting any of them. It was a great sight: We will get in touch with Lord Cunliffe as soon as possible and keep you advised of what their plans are. Yours sincerely, Benjamin Strong, Esq., 4100 Montview Boulevard, Denver, Colo. ,JC/CEP C' _ UNI OF SERVICE SYMBOL .essage Day Letter Blue Night Message Nit. TEL -ht Letter NL of these three symbols If appears after the check number of words )this is a day message. Otherwise its character is indicated by the symbol appearing after the check. NEWCOM B CARLTON, PRESIDENT CLASS OF SERVICE SYMBOL Day Message Day Letter AM Blue Night Message Nits Night Letter NL If none of theea three symbols appears after the check number of words)this Is aday message. Otherwise its character is Indicated by the GEORGE W. E. ATKINS, FIRST VICEPRESIDENT symbol appearing after the check. RECEIVED AT 117-41 - 't CY TnzmIcr7n TVIR351V 1917 APR 23 J-316A ,18 Q NEWYORK NY 123P 23 BENJ STRONG 1114 4100 MONTVI PI BLVD DENVER COLO, I: ) be IU CALL YOU JiN TELEPHONE AT TO THIRTY THIS AFTERNOON OUR TIME UNLESS YOU ADVISE TO CONTRARY J F CURTIS PM 5 42 FEDERAL RESERVE BANK OF NEW YORK April 23, 1917. ly dear Governor: Vie have been trying to reach you by telephone for about four hours but so far have been unsuccessful. I send you herewith a copy of a letter which we have to-day forwarded to Lord Cunliffe at Vashington. 7r. Jay has arranged to see him there to-morrow morning, and both Mr. Jay and Mr. Treman are to meet him at a dinner given by the Secretary of the 7.reasury in Uashington to-morrow night. 7ery truly yours, Benjamin Strong, Esq., 4100 Montview Boulevard, Denver, Colo. JFC/CEP Enc. FEDERAL RESERVE BANK OF NEW YORK April 23, 1917. ny dear Governor: I have your letter of April 37th with respect to the Bank of England matter. I agree with your sug- gestion as to making a good chronological record of the various steps of this arrangement, and will have this done forthwith. Very truly yours, Benjamin Strong, Esq., 4100 nontview Boulevard, Denver, Colo. JFC/CEP JF SERVICE SYMBOL CLASS OF SERVICE SYMBOL `sy Message essage Ater Blue ,,it Message has Letter WESTERN UNION TEL Night Letter NL If none of these three symbols ak. s after the check nuher of wot this Ise day message 'Aloe its character is indicated by the . 111. 1-1.7 Nib AM Night Letter appears after the check (number of words)this Is a day message. Otherwise its character Is indicated by the symbol appearing atter the check. cymbal appearing after the check. RECEIVED AT C174CHO§fLICAT7- C, 17151272(177D TITI"t$It Q NEW YORK NY 231P 25 1.L.L52 A7 to be 969 BENJAMIN STRONG 4100 MONTVIEW BOULEVARD DENVER COLO EMAN AND AGREE THAT IF YOUR HEALTH PERMITS IT Is ADVISABLE FOR I YOU TO JOIN CONFERENCES AT WASHINGTON WHERE EVENTS ARE MOVING RAPIDLY YOU DECIDE PLEASE WIRE US YOUR DECISION AND TRAVELING SCHEDULE IF OME EAST J F CURTIS. NL If none of these three symbols NEWCOMB CARLTON, PRESIDENT [917 APR Blue Message FEDERAL RESERVE BANK OF NEW YORK July 16, 1917. PERSO7AL Dear Governor: I have neglected writing you about affairs at the bank because there did not seem to be very much to say. I have tried to move forward the amendment to the trading with the enemy bill but with very little success. I sent a copy to Leland Harrison, who told me by telephone that he felt he could not do anything about it, as the original bill had been drafted by the Departments of State, Treasury, Comerce and Justice, and he did not think one department could very well try to have it amended without the others. He seemed to think that you ought to come back and go before the committee. I pointed out to him that it seemed somewhat extraordinary that a private citizen should be asked to travel 2,000 miles for the purpose of coordinating four departments in "Tash- ington, but I don't think I made much impression or headway. He also said he understood Pratt had sent you a telegram asking you to come, to which I replied that I hoped you mould not pay any attention to it. I also tried to get an expression of suggestions or criticisms from David Hunter Miller, who is acting for the State Department in getting information of gold exports from New York through the United States Attorney's Office, and he is giving me copies of everything he gets. Miller, however, said he felt he could not give me any suggestions, as he was tied up with the State Department, so I got nothing useful from him. Finally I sent a copy of my amendment to Senator Fletcher, with a letter urging that it be adopted, as it appeared that nobody else was going to take any initiative in the matter. ...,ERYE BANK OF NEW YORK 2 Benjamlu. 3trong, Esq. I had some talks with Kent on this matter, and he thought the amend- ment fairly good but suggested getting in touch with Pratt, which I haven't done as yet but will try to do some time this week. I notice you have broken into print and have read your article with great pleasure. We are having a series of meetings this week on Liberty loan and war savings plans, which will take up most of our time, I think. matters are very quiet. Otherwise I hope you are forgetting business and getting a real rest. Yours, as ever, Benjamin Strong, Esq., 128 Gilpin Street, Denver, Colorado. a rd.( 076 CcX- AP-A 911_444_ 11,1---0Pp P. S. --- I aM enclosing herewith a letter from Lord Cunliffe, which I am sending on for your attention, as I believe it is your intention to handle this correspondence yourself. I have not acknowledged receipt of the letter. Form 1201 CLASS OF SERVICE SYMBOL '", Message _ ter anght Message Clue Nite NL ,f these three symbols Night Letter If rr , app ter the check number af words) .,,,s is a day message. Other. wise its character is indicated by thd WESTE4,17A1 UNION 111\\V" AM E WES'IERN UNION GEORGE W. E. ATKINS, FIRST VICE-PRESIDENT symbol appearing after the check.1 CLASS OF SERVICE SYMBOL Day Message Day Letter Night Message . Nght)./ etter ,,-Th/1 If none 4f t'pia 152NY OC 36 Q NEWYORK NY 150P JULY 19 1917 BENJ STRONG GlIW7ST DENVER COLO MAJORITY OF GOVERNORS THINK IT ESSENTIAL TO HAVE A CONFERENCE BEFORE NEXT LOAN CAMPAIGN AND HAVE SUGGESTED AUGUST FIFTEENTH AT WASHINGTON IN ORDER TO BE NEAR TREASURY DEPARTMENT WOULD THIS BE AGREEABLE TO YOU PLEASE WIRE J F CURTIS 1211PM ree sprat. ftgrPth e dee* number of word his-Ise daV message. Otherwise scfiaractertAihdicated byahe symbol ;appearing after the cheek. appear RECEIVED AT 91-519:251 9 EVENTEENTH ST., DENVER, COLO. AI6ZZS 128 Blue kite 1-4-N LI 01 ESTEOA& UNION sYMBOL Blue Night Message Nits NL If none of these throe symbols Night Letter appears after the check number of words, this is a day message. Otherwise Its character is indicated by the cARLTON, PRESIDENT character is indicated by the symbol appearing after the check. RECEIVED AT illirC247CH Day Letter TENEkj". AM ,7iS is a day message. Other- aymbel appearing after the check. IIIL Day Message WESTERN UNION Nits itiLetter NL rale of these three symbols after the check number of _message As. CLASS OF SERVICE 138 GOVT WASHINGTON DC 725P 25 4A4) STRBNG jR1298 4100 MONTVIEW BOULEVARD DENVER COLO SHOULD LIKE TO SEE YOU TWENTY SEVOND MUCH AS.I -ANIKS YOUR LET1ER TRH) FOR YOUR RISKING THE FEEL THAT THERE IS ANY OCCAS'lON CANNOT TODAY DISCUSSUNG GENERAL BOARD HAD LONG MEETING WITH CUNLIFFE INTERESTED WAS NOT NEGOTIATION IN WHICH YOU ARE CONDITIONS SPECIAL IS PRACTICALLY OUCHED UPON IT APPEARS TO ME THAT NEGOTIATION THINK WOULD HAVE TO DO NOR DO COMPLETE AND THERE IS NOTHING WE YOU AND CUNLIFFE WOULD ADFW7 ANY PERSONAL CONFERENCE BETWEEN ). I 4 6 FEDERAL RESERVE BANK OF NEW YORK "C) dl w. 411j. sOquly 20, 1917. t Dear Governor: I enclose herewith a draft of a report of a con,,fe/n/ce held this week with respect to the next Liberty Loan campaign. /It is proposed to lay this before Mr. McAdoo early next week, but before/doing so we would like to /, obtain your views. May we impose upon your leisure by asking you to read it through and telegraph us your suggestion We also held a meeting on war atixings, which was very successful. I will send you a copy of the report as" soon as it is ready. With respect to our inter961 organization for the next campaign, our executive committee has voted to have a permanent Bond Issue Division organized under Mr. Sailer's direction, on the understanding that he is to be relieved of.a large portion of his present duties, which are to be dis- trnuted among the assistant cashiers (obtaining a new assistant cashier for this purpose, if necessary), and that he select a new assistant cashier to take immediate charce of the division and that Mr. Gregory will be retained in an advisory capacity with compensation. ,I hope you approve of this plan. It is the result of much travail of thought and meets the views of Messrs. Treman, Jay, Sailer and myself, as well as those of such of the executive committee as have passed upon it. I trust the weather you are having is better than ours, which is getting a little torrid. Sincerely yours, 19enjamin Strong, Esq., 128 Gilpin Street, Denver, Colo. LIBERTY LOAN CONFERENCE. Report of a conference held in at whieh the following named gentlemen New York City, Jtzly 17 and 18, 1917, were presents A. L. Aiken, Governor, Federal Reserve Bank of Boston. C. J. Rhoads, Governor, Federal Reserve Bank of Philadelphia, George J. Seay, Governor, federal Reserve Bank of Richmond. E. R. Fancher, Governor, Federal Reserve Bank of Cleveland. J. B. Meougal, Governor, Federal Reserve Bank of Chicago. Pierre Jay, Chairman, Federal Reserve Bank of New York. J. F. Curtis, Secretary, Federal Reserve Bank of New York. N. P. Hallowell, Lee Higginson & Co., Boston, Vice Chairman of the Liberty Loan Committee of New England. J. R. Macomber, President, Harris, Forbes Co. of Boston, and member of Executive Committee of Liberty Loan Committee. Phillip Stockton, President, Old Colony Trust Co. member of ExecntI7o :),mmittee of and representative of the Best:on of Boston, and Liberty Lean Onelittee, Clearing House. Robert R. S. reeks, Harris, Forbes & Co. of Boston, and Publicity Committee. member of John K. Allen, tro)d, Putnam & ood, Executive Manager of Publicity Committee. C. S. Millen, Assistant Cashier, Federal Reserve Bank of Boston. C. E. Perkins, Lee Higgins= & Co. of Boston and Secretary of Liberty loan Committee. D. Jay, Vice President, Guaranty Trust Co. of New York, and member of ecutive Committee of Liberty Loan Committee. National City Bank of New York, and Manager of the Bond Issue Division of the Liberty Loan G. E. Gregory, Vice President, Committee of New York. Ggy Enerson, Vice President, National Bank of Commerce in New York, and Secretary of Publicity Committee of Liberty Loan Committee of New York. E. Mitchell, President, National City Company of New York, and member of Distribution mittee of New York. Committee of Liberty Loan Com- E. B. Sweezy, Harris, Forbes & Co. of New York, and member of Distribution Committee of Liberty Loan Committee of New York. J. Ward, Cassatt & Co., Philadelphia, and me7ber Executive Committee of the Selling Campaign. W. C. Janney, Montgomery, Clothier & Tyler of Philadelphia, and General Manager of Selling Campaign. P. M. Hardt, Cashier, Federal Reserve Bank of Philadelphia. Lewis H. Parsons, Graham, Parsonn & Co., Philadelphia, and member of Executive Committee of Sellin C.e4paign. J. F. Bruton, Director, Federal Reserve Bank of Richmond, and President of First National Bank of Wilson, N. C. Charming Rudd, Alexander Brown & Son, Baltimore, and Chairman of Liberty Loan Committee for Maryland. L. B. Williams, Hayden, Miller & Co. of Cleveland, and Vice Chairman of Liberty Loan Committee of District No. 4. L. W. Manning, 2neretary, Federal Reserve Bank of Cleveland. Allard Smith, General Manager, Cleveland Telephone Co., and member of Publicity Committee of Liberty Loan Committee of District NO. 4. L. Stuart, Halsey, Stuart & Co., Chicago, and member of Publicity Committee ,f Liberty Loan Committee of Chicago W. M. J. Fisk, William A. Read & Co., Chicago, and Chairman of Distribution Committee of Liberty Loan Committee of Chiaagp. Edward Clifford, retired, Assistant to Chairman, Prblicity Com, mittee ef Liberty Loan Committee of Chicago. Lewis B. Franklin, Treasury Department, Washington, D. C. J. A. Broderick, Chief Examiner for the Federal Reserve Board. The conference organized by appointing Mr. Aiken as chairman and Mk. Curtis as secretary, and adopted a programme which included a discussion of the terms of the bonds and certificates and the selling and other organizations relating to the flotation of Liberty Loans. After the adoption of the programme the four committees, every member of the conference conference was being a divided into member of one of such committees. rach committee prepared awritten renert covering the assigned to it, which was in detail. submitted to The following is a ference after consideration of topics the general conference, and discussed report of the final action taken the committee by the con- reports: ...1=j_aIC.ONS OF Nxya ISSUE OF LIBERTY BONDS. 1. Amount of Issue and Rate of Interest. Recommendation - at Comment That the .1ext issue of bonds be three billion dollars three and one-half per cent.* This reoommendation is based on the assumption that the present issue of Liberty Loan bonds will be selling approximately at par at the time the new offering is made, and that the Government will take the necessary steps to maintain the market price at par for the outstanding issue while the campaign is in progress. 2. Date of Issue. Recemmendation - That the selling campaign begin not earlier than October 1, 1917. Reasons The last payment for the first loan is not due until gust 2cOth and the various Federal Reserve banks will be in communioation with the banks in their districts tive to the first loan well into September. There should be a breathing spell of at least a month between the ending of one loan and the beginning of another. rela- During September many of the cereal crops are being moved, which usually means high rates of money. 71oveever, the farmelis absorbed in moving his crops and would be hard to approach on the subject of investment. For both these reasons a selling campaign during this time should be avoided. September and August are without question the worst investment months in the year. Bank presidents and directors, mill owners, corporation heads, etc., who would be large buyers of these bonds, are not back from their vacations in September. Their absence will decrease their awn subscriptions but also materially reduce the perchases of their companies. Three members of the committee of thirteen which considered successful flotation also depended upon the Federal reserve banks naming a ninety day rediscount rate on nailer secured by these bonds at a rate of three and one-quarter per cent.) *(Note: the selling campaign felt that the 5. The number of bond salesmen in active business has been very materially reduced by war activities, miring the services of those remaining a very necessary factor in the selling campaign. Many of these men also will still be away on vacations and net available before October let. All in all, September seems a most unfortunate month in which to begin a drive on the largest loan ever issued by this country. Maintenance of Price at Par. Recomendationh. That a sinking fund be provided under which bonds will have the benefit of a fund of say one-eighth of one per cent. a month for making purchases in any month when the Issue sells below par. This sinking fund not to be accumulative. Comment The experience of Great Britain with a similar provision In the terms of the last loan has been very satisfactory. - .12.2_1Mi Recommendation - Instalments. That an intitial payment of two per cent. upon application be required and that subscribers be given the option of paying instalments, provided that under no circumstances shall they be permitted to alter or amend the terms of their original subscription, except that any subscriber who has elected to pay in instalments may pay in fall, without notice, upon any instalment date. either in full or in Delivery of Bonds. Recommendation - That definitive bonds or interim certificates in small denominations be prepared and ready for delivery at the beginning of the selling campaign. TERMS_AND CONDITIONS OF 'ISSUE OF CERTIFICATES OF INDEBTEDNESS. Time and Method of Offering. Recommendation - That certificates of indebtedness be offered for subscription every fortnight; that payment for them be made by credit on the books of the subscribing bank, the certificates being held as security by the Federal reserve bank; the banks be not required to pay interest on such deposits; and if practicable, that a schedule of withdrawals be agreed upon in advance. that Rate of interest. Recommendation - That the rate of interest be determined by the market and other donditions existing at the time of offering. In the opinion of the conference it is not only advisable but necessary that Congress should give the Secretary of the Treasary complete authority to determine the rate of interest at which short time certificates of indebtedness shall be issued from time to time. Comment 3. Retirement. Recommendation - That certificates of indebtedness should be callable at par and interest, at the discretion of the Secretary of the Treasury, on ten days notice.' TIME SCHEDULE OF SELLING CAMPAIGN. Alosiofakaooks. Recommendation - Corxaent - All subscription books to close 27 days after the openOctober 1 to October 27, inclusive. ing of the campaign. By "opening of campaign" is meant the date that Government circulars, application blanks, etc., are distributed by the various Federal reserve banks. kar Recommendation - of Closing_gubscrIption Books. until the close That the subscription books remaia open of business or the last day of the campaign, and that the various subscription agencies be allawed to receive subscriptions up to that hour. Report Recommendation - of Subscriptions to Federal Reserve Banks. That the period during which banks and trust companies must tabulate and report their subsdriptions to Federal reserve banks on prescribed forms be fixed at 5 days -October,28th to November let inclusive. Reports by Federal Reserve Banks to Treasury Recommendation - Department. That the period during which Federal reserve banks must subscriptions to the Treasury Depar'eaent be fixed at 7 days -- November 2nd to November 8th inclusive. report their Allotment by Treasury Department. Recommendation - That the period within which the Treasury Department will barke be fixed at 3 days -- November 9th to 11th inclusive. mhke allotment tele report to the Federal reserve Paymeut of First Instalment. Recommendation - That the period within which the Federal reserve banks shall prepare allotment letters to be sent to the subscribing banks, and within which subscribing banks shall make payment to the Federal reserve banks, shall be fixed at 15 days -- November 12th to November 26th inclusive. 7. Other Instalment Payments. Recommendation - That the second instalment be made payable December 20th and the third on January 17th. EXPENSE OF LOAN CAlglIGN. Recommendation That the Treasury Department apportion among the districts,, at least 30 days before the opening of the campaign, the funds available to meet the expenses of placing the issue. Comment It is the unanimous opinion of the conference that if the present organization is to be effectively maintained and the next campaign made a success, additional funds equal to another 1/10 of one per cent. of the amount of the loan must be provided to meet the necessary expenses of the campaign; and the Secretary of the Treasury is earnestly requested to take steps to provide such funds, even to the extreme of asking Congress to amend the Act for this purpose. FRANKING PRIVILEGE. Recommendation - That the Secretary of the Treasury be requested to obtain the most liberal franking privilege possible in behalf of all Liberty Loan natter put out by Liberty Loan committees and the Federal reserve banks. ORGANIZATION OF CSNTaAL LIBERTY LOAN COMMITTEES. Recommendation - That each rederal reserve bank exercise its discretion with respect to the character of its Liberty Loan Committees. Comment The conference is of the opinion that conditions in the several Federal reserve districts are so varying as to call The committees esfor different forma of organization. tablished by the various reserve banks were found to be in the main highly effective, and their experience will enable them to eliminate the weak spots and increase their efficiency without attempting uniformity of organization. ORGANIZATION OF FIELD FORCE. Recommendation That each rederal reserve bank call for volunteer experienced salesmen for the campaign, the call and reoommendation for appointment to be subject to the approval of the Liberty Recommendation for apLoan Committee from each district. pointment of salesmen to be forwarded by the rederel reserve banks to the Secretary of the Treasury, by whom all appointments will finally be made. Suitable insignia for salesmen and others designated by the Federal reserve banks and the Liberty Loan committees acting together to be furnished by the Treasury Department. DISTRIBUTION OF LITERATURE. To Liberty Loan Committees. Recommendation - That the Treasury Department send all of its official eirculars only to eedenal reserve banks, and that the reserve banks should undertake the distribution of such circulars to all subordinate Liberty Loan Committees. To other bRnkinR institutions. Recommendation That the Treasury Department send to every bank and t-ust company and other banking institution in the country its official circulars relating to the Liberty Loans. Comment It was stated to the conference that the Treasury Department had under consideration the preparation of a communication to be addressed to each bank and trust company in the country requesting to be advised of the number of its depositors in order to enable the Secretary of the Treasury to furnish such banks, to be forwarded to each depositor, circulars explaining the Liberty Loan and appealing to the depositor to purchase the bonds. This plan met with the hearty approval of the conference, and in connection therewith it is suggested that the Treasury Department advise the various Federal reserve banks of the names of the banks which furnish this information so that the matter may be followed up further by the Liberty Loan Committees. FURTHER CONFERENCES. Recommendation That represeltatives of the twelve central Liberty Loan Committees meet in Washington with representatives of the Treasury Department prior to the campaign, for the purpose of discussing and coordinating methods; and that this conference arrange for proper contact with the Treasury Department to facilitate operations during the campaign. TECHNICAL ADITINISTRATION. A special committee of technical serve banks has been formed to make represe tatives of the Federal re- recommendations of the receipt and payment of subscriptions, and definitive bonds; in regard to the details deliveries of interim certificates also, all matters relating to deposits of Government funds in connection with the sale of Liberty Loan bonds. The report of this committee will be submitted to the Secretary of the Treasury as promptly as possible. -8APPENDICES. There are appended hereto reports of the Committee on Selling Organization (Appendix "A") and the Committee on Publicity (Appendix "B") which embody many suggestions interesting to the Federal reserve banks and Liberty Loan committees, but which do not deal with matters which must necessarily be passed upon by the Treasury Department. APPENDIX "A" SELLING ORGANIZATION. It is the opinion of the districts represented at this meeting, namely, Boston, New York, Philadelphia, Richmond, Cleveland and Chicago, that the most effective programme of selling is the one carried out in the last campaign, in general, as follows: Appointment of Central Committees by the Federal reserve bank, and the appointment of local committees covering all banking centers, which are to be assisted and directed by experienced bond salesmen. Each local district should be organized with the greatest possible detail. It is the opinion of the committee that this can be beat developed by the maximum amount of personal contact in every line of endeavor. For Instance, in large cities a chairman for each important trade should be appointed from that trade by the Liberty Loan Committees. This chairman An should then form a committee of his own to completely cover this trade. experienced salesman reporting to the Liberty Loan Committee should be made sponsor for this committee to help the chairman in every way. The method of covering a city by trades committees does not preclude the city being also covered by salesmen who shall be allotted various districts. Between the various Liberty Loan campaigns we recommend that each district maintain a skeleton organization at small expense in order to take care of any details which may come along, such as arranging reports, com- pleting the files and notifying chairmen of various local committees of any important decisions bearing on the Lierty Loan bonds, rendered in Washington. It is recommended that a representative, apneinted by the American Bankers Association, be added to the distribution committee, or some other suitable committee, in each Federal reserve district, in order that the various Liberty Loan Committees shall receive the benefi# of its valuable work and organization. That an effort be made to have all other organizations, including the women's organization, insurance companies, express companies, etc., cooperate with the various Liberty Loan Committees through their membership in any given localities. It is recomnended that in the agricultural territories farmers' organizations, county fair associations, and State, county and district school authorities be called Upon to use their influence to disseminate information and stimulate interest in the sale of bonds. It is our opinion that bond salesmen should be used to a greater extent than in the last campaign to organize and supervise local committees throughout the various districts, rather than to utilize these men for house to house canvass. This work can be covered by available persons not neces- sarily trained to the bond business. The "movie" campaign should be carried on with reels, slides and speakers, as heretofore, but with greater definiteness as to authority, especially as pertains to speakers at ,*movie" performances. It is our belief that the reels and slides should be furnished from a central bureau, but that speakers at movie performances should be furnished by the speakers' bureau of each district. In regard to meetings and speakers, it is our belief that the best results will be obtained by speakers' bureaus in each district, reporting to distributing rather than publicity committees. We recommend that the active manager of the publicity work should be made a member of the distribution committee. We believe that very important results come from meetings, and that these should be exiended beyond those of the past campaign. We strongly urge the desirability and necessity of simplifying the methods of subscription. e recommend that any prospectus or circular that is issued from Washington be so simple and concise in its language that it will be understood -3- by laymen, and that it be printed in bold type, on one side of paper only. We recommend that the whole machinery of the Post Office Department be used as a means of soliciting and taking subscriptions. It Is the sense of this committee that the apportionment of the amounts to be raised by the twelve Federal Reserve Districts, and reapportionment by such districts over towns and cities in their respective territories was a very potent factor in the development of subscriptions during the past camnaign, but it is also felt that the basis on which such appor- tionments were made among the twelve Federal Reserve Districts should be given further study, to the end that it nay be as nearly equitable as possible. We are of the opinion that the apportionment, within Federal Reserve Districts, should be left to the judgment of the Liberty Loan Committees controlling such districts. It is recommended that the smaller investors should be reached through some organization to which they belong, rather than by devoting the services of bond salesmen to soliciting 050 and 0100 subscriptions. A special committee should be appointed to devote itself exclusively to securing subscriptions from wealthy individuals and corporations, each individual and corporation being expected to contribute a,certain minimum. Al2E42.17, "B" PUBLICITY Discussion at the conference of publicity representatives has brought out the feet that the policy adopted in the last campaign as working in existing organizations is the most satisfactory that can be devised. The amount of work necessary, however, tn order to obtain the full cooperation of organizations skilled in the highly technical work of advertising, the supplying of news, etc., requires months of preparation and this Committee accordingly recommends that facilities be provided by the Federal reserve banks in each district for the immediate establishment of at least a small Liberty Loan Publicity headquarters. This will serve as a rail-ling point for the scores of people who want to help in the publicity of the next campaign and who are anxious to lay their lines plenty of time in advance in order to avoid confusion and unnecessary expense. Our Committee is unable at this time to attempt to cover the expen- ses and technical points with regard to the distribution of publicity material and other educational work undertaken by the last campaign, Publicity Committee (luring the These matters have been made the subject of separate reports in the districts of Chicago, New York and elsewhere and those particularly concerned will find these reports available. general tendency of all students of the namely that the general publicity dition and that It may be said, hewever, that the subject is machinery toward the same conclusion, exists in a highly organized the chief thing necessary to enable it to function in campaign to the highest degree of efficiency, is an immediate headquarters and duly constituted authorities. which go to make up the American publicity con- the next establishment of The hundreds of organizations machinery will then be informed definitely as to just what is required of them, thus enabling them to adopt a policy of preparedness. The Committee feels that one of the most important points to be con- sidered involves coordination PalicitrCommittee and all other between the This applies particularly to Liberty Loan sub-corraittees and agents. work of the Publicity Committee and that tee. or the Distribution or the Selling Commit- These two bodies are called upon to do work which in many of its features is identical. In the district of Yew tween educational .work; etc._, and the ly go and Yo7,k, the distinction largely lies be- such as advertising, news, moving pictures, posters, sell the bonds. personal solicitation on the part of trained men who could actual- During the last campaign the Speakers' Bureau was under the Distribution Committee in Boston and under the Publicity Committee in New York and .Chicago. No rule can be laid down in this natter. It is clear, however, that a definite understanding should be had at the outset as to a division of responsibility in all matters connected with bringing the loan to the attention of the public whether through the written It the spoken word. is our opinion, however, that there is no any crossing of wires mittee or between the selling and publicity committees. must know what the other is doing. one man responsible fundamental reason for Each com- It is largely a question of having for results in every committee and holding the managers of the selling and publicity committees responsible for a complete coordination of their respective line of work. - In this connection it should be said that the responsibility of estab- lishing committees in the various industries should lie directly with the General Liberty Loan Committee. When a committee of railroad men for example is established, this committee should be tile recognized medium for reaching railroad men both with regard to publicity and with regard to selling. Such -a committee should not be called primarily a selling committee any more than It should be called a publicity committee. a :Railway Liberty In our opinion i Loan Committee and it should then be the duty should be called of the managers of the Selling and Publicity Committees to-see that the Railway Committee thor oughly understands the campaign laid out and cooperate in full in selling the maximum number of bonds in every possible way. It goes without saying that every oammittee is anxious to cooperate in every possible way with such central organizations or steering committees as may be established in Washington. During the last campaign there was a 'greeter of Publicity in the Treasury Department who was able to cooperate with the various Liberty Loan Committees in seduring the assistance of the Gorernment Printing Office and in many other ways. It is impossible, however, for any human being, no matter how wide MP his experience, to farm a temporary organization in Washington which can enable or guide in detail the work of the various Liberty Loan Committees with their varirus local problems and requirements which differ. It is true, however, that if a director of publicity is to be appointed for the next loan, he should be appointed the Liberty imlJediately, Loan Committees may be able to cooperate with in order him from the that outset. It is, however, earnestly recommended that the Publicity Committee in each district be given an approximate idea much money it can spend. early in the campaign as to how Obviously $10,000. early in the campaign is of much more value than many times that amount toward the end of the campaign. With the view of making certain specific recommendations, the committee offers 1. the following concrete suggestions: ORGANIZATION. An ideal committee is one responsible to the executive committee of the district and composed of trained advertising men, a sales manager accustomed to selling merchandise to masses of people, representatives of bend houses, and an experienced newspaper man possessing the confidence of the city editors. (a) The publicity committee should be in constant and intimate con- tact with the distribution committee and speakers' bureau, both of which furnish much material for news publicity; (b) The Director of Publicity in the Treasur: Department can assist the district committees in several ways, but each district should be left to develop its own methods and not dppend upon anyone else for ideas or material, with the exception of buttons which shouad be ready in the hands of the secretary of the executive committee of each district before the loan opens. is important. (o) This The button should be given out when the subscription is made. Committee organization -- a chairman or executive manager who The publicity committee should have should give his entire time to the work and be responsible for all details. The inside organization may well bei The executive manager, A member responsible for advertising "copy," A member to handle the outside organization such as the Womens' Special Aid, etc. A member to put through spectacular things to gain publicity, A member to. handle the news publicity. This organization should be permanent until the close of the Government financing for war purposes. The executive manager can keep a skeleton organization in interim between campaigns. During the campaign there is work for all the members. In the larger cities in each district there might be local sub- committees on publicity to post advertising matter and attend to details in which the central committee may need assistance. (d) As news publicity is essential and newspaper advertising and news are interdependent, it is desirable, if possible, that some paid publicity should begin with the opening of the until its close. campaign and be continued, if possible, The cost of such a campaign may be provided for as each executive committee finds possible. In addition to daily newspaper advertising all merchants and other advertisers should cooperate by using references to the bonds in their awn advertising. All traction companies, steam and electric, should carry advertising posters in and on their cars. Posters on billboards, dead walls, hoardings and in store windows should be profusely used. Brief eduaational and inspirational leaflets should be distributed to the public with public service and commercial invoices in parcels, pay envelopes and other ways to gain entrance to homes. American citizens speaking other languages than English should be reached by the foreign language press and by posters and leaflets in foreign languages. In conclusion this committee desires to say that while it regards the problem of floating an additional loan in the fall as a most serious and difficult one, it believes that if case before suitable opportunity is given to put the the American people in a clear and intelligent way and if suitable offices and other facilities are promptly pravided, the next loan can be car red through even more successfully than was the last one. FEDERAL RESERVE BANK OF NEW YORK July 21, 1917. Dear Governor: I am sending under separate covers about four-hundred letters which I understand you want to sign personally. They are addressed to various peo- ple who have been ennloyed in the various Liberty Loan committees. The let- ters are divided into two groups, one representing persons whose employment has terminated; the other, those who are still at work. There is also a small group of Gregory's immediate assistants, who are addressed personally. I hope you don't get writer's cramp from attending to them. The governors' conference has been definitely called for August 15th. Referring to the amendment to the trading with the enemy bill, I have finally sent a copy to Harding, Crosby and Charles Warren of the Department of Justice, and urged them to get together with the State Department and Department of Commerce and get some action. Thi from 7arding, saying that he and Warburg have taken the matter up with Crosby and made a change, placing the authority in the Federal Reserve Board instead of with the Federal reserve banks, and adding that this was for submission to Secretary IcAdoo for administrative apnroval. I am writing him stating that either way suits me, provided we can get some action, and also saying that 7essrs. Kent and Rovensky have agreed to go to Washington, if call upon, to present a statement of the situation and of how it can be remedied. am also telling him that I am getting some data from Blackett as to the way it is handled in ngland. I think that possibly we may be able to make some headway now. Very truly yours, Penjamin Strong, Esq., 128 Gilpin Street, http://fraser.stlouisfed.org/ Denver, Colo. Federal Reserve Bank of St. Louis _cW YORK Benjamin Strong, Esq. 7/21/17. P. S. --- I enclose a letter from Mr. Ingalls Kimball, which has not been answered. J. F. C. FEDERAL RESERVE BANK OF NEW YORK 0 July 27, 1917. Dear Governor: I have just received your telegram of July 23rd addressed to me in Washington. Unfortunately our train was so late that I didn't go to 1718 H Street at all and so missed receiving it. Kent and I spent the morning trying to be heard by the sub-conmittee of which Senator Ransdell is chairman, which has the bill in charge, but as they only sat an hour and a half and adjourned at noon to meet again the folHowever, we did, lowing day, we had no success. I think, convince Crosby of the necessity for getting the billthrough and he is taking an active interest in it and in consultation with Warburg and others has made some changes in the draft which I prepared, so that it now reads as shown in the enelosed;----,- memorandum. We also talked with Messrs. Harding and De1an4 who we'refavorably inclined towards the plan, but stated that they. could not press unless requested to by sone.of the Departments. further from Crosby but am writing:htm been made.(41.4" for the bill 1)w-0:not heard anything -day as. to whether any progress has )4 I have just received your two telegrams to Mr. Jay with reference to the organization of the Liberty Loan committees and agree with both of then. He is out of town to-day for the week-end but will doubtless take the matter up on Monday. We are having a slight discussion with the Board as to the method of holding the next conference of governors, and I will let you know the final developments next week. DERAL RESERVE BANK OF NEW YORK 7/27/17. Benjamin Strong, Esq. "Ye are today forwarding your letter to M. Pallain, together with your memorandum which Messrs. Treman, Kent and I have gone over. Mr. Kent is showing it to M. De 7euf1ize this afternoon. The war situstion looks pretty bad from this end of the wire. does it look out there? Yours sincere 7, Benjamin strong, Esq., 128 Gilpin Street, Denver, Colo. Enc. t tt (1(r/L_ (e How OF SERV Ylestagr, -- WESTE UNION I Blue Letter Night MI asp ge TEL 14a`:-Jg- AM NL I three symbols le check number of a day message. Otherracter is indicated by the .ppearing after the check. CLASS OF SERVICE SYMBOL Day Message Day Letter NEWCOMB CARLTON, PRESIDENT GEORGE W. E. ATKINS. FIRST VICE-PRESIDENT RECEIVED AT 915-919 SEVENTEENTH STREET, DENVER, COLO. '.OAT ON L. Night Letter symbol appearing after the check. Tptls Q NEWYORK NY 540P JULY 31 1917 ) 128 GILPIN ST DENVER COLO PROPOSED CONFERENCE OF GOVERNORS POSTPONED LETTER FOLLOWS J F CURTIS 407PM NL appears after the check (number of words)this is a day message. Otherwise its character is indicated by the 4.1z. 1_324 Nite If none of these three symbols 346NY OC 7 BENJAMIN STRONG Blue Night Message WESTERN UNION N ite NigM Letter rI. Form 1201 FEDERAL RESERVE BANK OF NEW YORK O DE_ s4agUstiAi 1918. JjERAL RESERVE B.: Dear Gov: Since last we met I have been spending ny days in the consultation rooms of all the doctors in town, with the following result. Martin says there is nothing the matter with me, so far as he can find out, but I ought not to attempt to be a soldier. Cutler says there is nothing the matter with me, so far as he is concerned, but I to attempt to be a soldier. ought not He does admit that I have slight astigmatism of one eye--I have forgotten which--and he has prescribed a pair of spectacles which now adorn me. He thinks that this astigmatism has been a contributing cause to my headaches and tiredness and that the glasses will help to bring relief. Hunt (who is a nerve specialist) says there is considerable the mat- ter with me from his point of view, although he agrees with the other two from their points of view. He claims that I am suffering from concussion of the brain, nervous exhaustion and shock to the nervous system, and he also says that I would be foolish to be a soldier at the present tine, as in his opinion I couldn't last very long. He has prescribed a complete rest for 514,04-x- a while, no worries, exercise, out-of-door life in a cool climate, and more to eat. Three days ago I received practically an opportunity of going over at once to France with a commission in the new Chemical Warfare Service, as Defense Division, which is being hurriedly organized at Pershing's request. They are taking over a lot of hand-picked civilians, practically all college men, many of my friends and associates. Percy Haughton, the foot-ball coach, is a major and one of the chief cooks in the new service. I listened to 8/9/18. Benjamin Strong, Esq. FEDERAL RESERVE BANK OF NEW YORK their siren songs for three days, but have finally told them to-day that I would not join up with them now for various reasons. However, theyolaim they can keep a place open for me later on, and as I think it is a great opportunity, I propose to keep in touch with them, but with no intention of making any final decision or move until after the next Liberty Loan Campaign, so you need have no cause for worry yourself on my account, and I have to-day telegraphed you to that effect. We are moving to the little cottage on my Mother's place at Manchester on Tuesday night. Hunt says four weeks will be better for re than three, and that even more than four would be advisable. I told him that it was imperative that I be back in time for the next Liberty Loan and he made no opposition to that. If you are going, or have gone, to Charley Norton's, stop over and spend a few days with us at Manchester on your way back. I will show you what a real golf course is like; also some groat golf. "le have had no reply from San Untermyer. I an leaving this matter in Mr. Sailer's hands. I have given some thoughtto obtaining a new assistant secretary for the Liberty Loan Committee and believe the best man would be Mr. Beyer, if you feel that you can let Mm spare that amount of time, which, as you know, is not really very much. I think this would be a great help in keeping you absolutely advised of everything and having the whole mechanics right under our own control. Since dictating the earlier part of this letter, with Leffingwell about space in the building. f have talked He says he has been holding up the question of taking a definite attitude with respect to Untermyer and the other tenants until McAdoo's return, as he has no doubt that McAdoo's personal influence would have far greater weight than any letter he, Leffingwell, FEDERAL RESERVE BANK OF' NEW YORK --as could write. week. Benjamin Strong, Esq. He promises to take the matter up with McAdoo promptly next I have asked him to communicate direct with Mr. Sailer. Please give my warm regards to Katherine. Yours as ever, 10 Benjamin Strong, Esq., E. G. Spaulding Cottage, Woods Hole, Mass. JEC/CEP 8/9/18. FEDERAL RESERVE BANK OF NEW YORK January 23, 1919. Dear Governor: I attended the meeting of the board yesterday, at which the first half of your letter was read by the chairman. I said that I was charged with the duty of seeing that the whole of the letter was read, whereupon the second half was handed to me to read. He says he is really very well now and doesn't see any reason for going away at the present time, but agrees to go at the first sign of tiredness or trouble. The reading of the letter naturally precipitat- ed some little discussion and I think the situation is in perfectly good shape. We certainly had a fine time at your hostelry and only wished we could have stayed longer and put away a few more griddle cakes. I am sorry to be dumb about the only piece of business you asked me to do, and still sorrier to have to admit dumbness, but I have talked with both Barrows and Hudson concerning the proposed pamphlet on our practice with respect to Government bonds, and I find that no one of the three of us has clearly in mind what the object Of the pamphlet is to be, i. e. whether to instruct banks or to instruct individuals, or both, and whether it is to contain copies of all the regulations or whether it is to be more simple and narrative in form, or whether it is to combine the two. I am afraid I didn't listen very closely while you were talking on this subject, as I can't remember what you said you wanted, so if you can let me have your views in a few words, pray do so and I will attend to the rest. ;45. (0 FEDERAL RESERVE BANK OF NEW YORK pil_tva - z. /- :5 7.:7,3 17- ,_ . 4 yffL, )--/ dz,../-1_, 7)0 q?r 4 )4j v L)/ gle2/ 742 z FEDERAL RESERVE BANK OF NEW YORK February 24, 1919. DETT Dear Gov: -QA-Yr \\° about the Governors Conference and I have your note of .Bwry.ark, enclose herewith a copy ofp#1,,,sVtre]NwAl.i.q.,,Iy-ii.wending to all the other governors. t47, I am inclined to think this will irritate the Board but if we find that it irritates them too much, of course it can be dropped. I have handed your check over to Lang Marvin, who is naturally pleased, but he wants me to say that, as he has repeatedly told me, he does not want you to feel any obligation in the matter in any way and that he would be very glad to continue as George's creditor without any subStitution. He adds that since I have sent him the check, he presumes that you are anxious to take his place and he consequently accepts the chE.ck with many thanks. In this connection I told him that I had not spoken to you about it after the first time, when you agreed to go in, but that you had several ties spoken to me about taking up the "white man's burden" and discharging your oral k)04" understanding entered into at that tine. SReferring to your letter of Fe br y 6th on the subject of real estate purchases, I am still at work getting a complete roster of all our outstanding leases. So far I am not upset over the situation, although there are several that run beyond May 1, 1920. ' I am still in agreement with the viers of our real estate brokers that in most of the cases it would be unwise to frighten the tenant too early in advance with talk about our desire to 'get immediate possession. You may rest assured that these matters are not being overlooked and whatever parcels we are getting with outstanding leases on then, we are getting with our eyes open and because we feel that the situation is best handled in that way. I will send you a little further line about this in a few days.\,- FED RESERVE BANK OF NEW YORK -., 9ERAL Benjamin Strong, Esq. . 2/24/19. Referring to your letter of Abruary 18th on the su ofz.rgotecting IS..,/, Liberty bond holders again fraud, I may say that we have aApady started cflksiderable investigations along the line you suggest. 44tc 7) rtois in charge of 4/4*, this and has some "Baby Bonds" which he hands to some not too well'4*Ie employe to offer for sale in the various offices, concerning which you write. This individual is accompanied by a secret service man (also not too well dressed) for the purpose of getting exact information as to what the dealers do and say with respect to these purchases. . Of course, it is very hard to catch them, as they simply make an offer of a price, generally without saying that it is the market price or anything else, and naturally there is not much legal pressure that one can bring to bear upon people who buy things for less than they are worth from a willing, even though ignorant, seller. However, the matter is not being neglected. am expecting a report from Mr. Bogart any day and will let you know what he says when it comes in. X , . Benjamin Strong, 7sq., Cluneden, Lake George, N. Y. JFC/CEP Yours sincerely, FEDERAL RESERVE BANK OF NEW YORK February 27, 1919. Dear Gov: The total cost of the dinner at Sherry's in honor of the Secretary of the Treasury was .;490., of which your share is 49. If you will forward me personally a check for this amount, I will dispose of the matter without its going on the books of the bank. Yours sincerely, Benjamin Strong,'Esq., Cluneden, Lake George, N. Y. FEDERAL RESERVE BANK OF NEW YORK nuNc DA;PT. February 2, 1919. 111) BAIIK FEDERAL RESER'S.TE Dear Gov: I have your letter of yeste r. Beyer is sending you the draft o by the Feieral Reserve Board for I understand programme prepared e conference on Larch 20th. This seems to me so all inclusi e and so much rore complete than I had supposed would be he case, that there is hardly any use in my attempting to prepare any supplemental programme, especially in view of the fact that I haven't received any suggestions from any of the other governors, so I think that we may as well consid r that the idea was born to die. Yours sincerely, Benjamin Strong, Esq., Cluneden, Lake George, N. Y. J.XiCEP , BRAIVI ../) APR 1) BANK FEDERM, RESERVE ::1191.49.)\.: fon) l'eear Governor: 1 have your memorandnm of April 14th on the subject of the chart, and since the receipt thereof have also obtained a copy of emended as of April leith, the revised chart and beg to give you below my comente on the organ- ization above the line indicated at the reeLing at the Union League Club. I have no comments to rake with respect to any ratters appearing above the line joining the words "Organization" and "Operation." '-ith respect to the matters below that line, I recommend -the following changes: The elimination of the title of deputy governor from The purpose of this is all except one person. to make a single deputy governor whose functions shall be to exercise the powers of governor in Durin4 the presence the absence or the governor. of the governor he should keen in touch with the detail of administration of all the bank so far es possible, so that he would be the natural conduit through which questions of policy would go from the other officers to the governor. I would change the titles of the three principal officers under the heading "Organization" to read as folows: Comptroller, Counsel, Director of Administration. I would change the titles of the principal officers under the left-hand subdivision under the word 'Operation" to read as follows: "Cashier, Director of Collections, Ttirector of foreign exchange, .2irector of 'nans, Director of Investments. I would change the titles under the right-hand subdivision under "Operation" to read as follows: fiscal Agency Director, fiscal Agency nirector. Mile this repetition of title seers unfortunate, my inagination is not sufficiently acute to invent a differentiation of title for the six divisions under the fiscal Agency Department which 'would. accurately describe e combination and division into two parts of the six functions outlined, and 2. Benj. Strong, Esq. 4/15/19. LI BRA RY APR 1 6 15,10 FEDERAL RESERVE BANK consequently I leave the person in charge of a half of the work with the sane title as the other person, believing, as I do, that the supervision of those six divisions would require more than one man, under a proper organization. I would have all the titles above described on the sane line with each other and the individuals exercise sirilar authority and be of sinilar rank, although, of course, not necessarily to receive similar compensation. 3. I have no conrents to make with respect to the Buffalo Branch aart of the chart. Very truly yours, Ben:anin Strong, 'sq., Governor, Pederal Reserve Bank of New York, New York. JFC/CEP 0 DENISON AND CURTIS WOW:NV.0RM BUILDING, NEW YORK CITY 6 October 1919 Mr. Benjamin Strong, 15 Nassau Street, New fork. Dear Ben, Here is 45 rei.-ard for your ability as a golfer. t Wadsworth wants to join the Piping Rock Davison and I anaputting him up. They tell me that some endorsing letters are required. Clubr Will you be so kind as to write one to F. L. Crocker, Secretary, 5 Nassau Streety Yours sincerely, DENISON AND CURTIS WOOLWORTH BUILDING, NEW YORK CITY December 11, 1919. Dear Beh, Many thanks for your refererce to Freund. SOMO letter of the 10th with You did speak to me about it days ago. 7 also have your two letters en the subject of dOUghnutz. If I had as large a staff as you, I might gather together enough information to put you doun. I notice yeu do not quote from any Yew En land authorities. Yours very truly, ji Benamn Strong, Fsquire, Federal Reserve Bank of New York, 15 lassau Street, Mew York city. JFC:EM /49 --7t cu RT I S, FOSDICK 8( BELKNAP ATTORNEYS 8c COUNSELORS AT LAW WOOLWORTH BUILDING JAMES F. CURTIS RAYMOND B. FOSDICK CHAUNCEY BELKNAP WILLIAM J.CURTIS COUNSEL NEW YORK CABLE ADDRESS, CURTISITE p. ( )uk a_. v.L Li.. 1X-1 ZA4- t 4, A c,._,04(7 kd Cc_ L'-''X-HTC3* -77 , /LL I,, "4---0--er-_ 1,,_, t,n-to fk,A. r?' I .17 J a cE * CU RTI S, FOSDICK & BELKNAP ATTORNEYS 8, COUNSELORS AT LAW WOOLWORTH BUI LD I NG JAM ES F. CURTIS RAYMOND B. FOSDICK CHAUNCEY BELKNAP NEW YORK WILLIAM J.CURTIS COUNSEL CABLE ADDRESS: CURTISITE December 28, 1921 Benjamin Strong, Eso., St. Vincent's Hospital, Seventh Avenue & 11th Street, New York. Dear Ben, Many thanks for your present to the boy, which arrived safely and is much appreciated. Your wat -dogs give such good reports of your progress You come up to see if they will let me in. that I certainly have had one hard pull, and I do hope that your troubles are about over and that best wishes for a happy New Year do not sound like hollow mockery. Yours sincerely, CURTIS, FOS DICK & BELKNAP ATTORNEYS & COUNSELORS AT LAW WOOLWORTH BUILDING JAMES F.CLIRTIS RAYMOND B.FOSDICK NEW YORK CHAUNCEY BELKNAP,' WILLIAM J.CURTIS - COUNSEL JAN30 1922 as CABLE ADDRESS: CUR,SITE January 19, 1922 Benjamin Strong, Esq., The Marlborough-Blenheim, Atlantic City, N. J. Dear Ben, Having heard some comment with respect to the views accredited to you on the subject of the amendment to the Federal Reserve Act which has recently passed the Senate of the United States, I take pleasure in inviting your attention to the language found in Section 8. of a bill introduced into the Senate December 1, 1913, by Mr. Burton, with the This early history of which I understand you are somewhat familiar. Section provided that the government and control of the Federal Reserve Bank of the United States should be vested in a. board of 7 directors, to be known as the Federal Reserve Board, all of whom should be appointed by the President of the United States by and with the advice and consent of the Senate, and whose selection should "be made from persons who are citizens of the United States and are qualified by experience and training for the proper discharge of ';lie duties imposed upon them by this Act, and in making such selections due weight shall be given to the agricultural, comaercial, and industrial interests of the different sections of the country, and at least three of the members shall be Governor Strong 2 1/19/22 persons recognized as possessing exceptional banking and financial experience. This should be compared with the provisions in the present Federal Reserve Act to the effect that in appointing members of the Federal Reserve Board "the President shall have due regard to a fair representation z of the different comnercial, industrial and geographical divisions of the country"; and that "of the 5 members thus appointed by the President, at least 2 shall be persons experienced in banking or finance." From this it would appear that the wise and distinguished authors of the Burton bill made a more careful provision to safeguard the agricultural interests of the country than did the authorsof the Federal Reserve Act. It certainly is interesting to see this particular chicken come home to roost./ It seems to me that the agricultural bloc has jockeyed the situation around so that it is pretty difficult to object to this change as a matter of principle, e x cept for the unfortunate part of having the Board composed of 8 instead of 7 members. The method of bring it about, however, is certainly far from pleasant. Hope you are having a good time and rapidly recovering your health. For heaven's sake, don't come back too soon. P" Yours as ever, JF0/T ALL /, Lau, rpt., rtk. bA a dak._ CURTI S, FOS DICK 8( BELKNAP ATTORNEYS St COUNSELORS AT LAW WOOLWORTH BUILDING JAMES F.CURTIS RAYMOND B.FOSDICK CHAUNCEY BELKNAP ,tov nr,46/I,LLIAm J.CURTIS NEW YORK COUNSEL CABLE ADDRESS: CURTISITE Mecanber 21, 1922 Dear Ben, Many thanks for the Liberty bond, which I will see is safely delivered to your godson and which I know will be deeply appreciated, both by him and his parents. We are going to be in Glen Cove on Christmas day. Would you care to come down for any part of it, in case you haven't other engagements? Benjamin Strong, Esq., Governor, Federal Reserve Bank of New York, 15 Nassau Street, New York. 2 3 3 BizomvwA-yA INmw Yortic CkNOW I ,EDOED D E C 2 7 1923 P e 9 Ze//,y //k 74- 227 4.6( Z6A. 0,9 ,Ith CURTIS, FOS DICK BELKNAP ATTORNEYS & COUNSELORS AT LAW WOOLWORTH BUILDING JAMES F. CURTIS RAYMOND B. FOSDICK CHAUNCEY BELKNAP WILLIAM J.CURTIS COUNSEL NEW YORK CABLE ADDRESS: CURTISITE ACKNOwLEFOIV,D OCT 2 8 1924 October 1st, 1924. R Benjamin Strong, Esq., c/o Spencer Penrose, Esq., Broadmoor, Colorado Springs, Col. Dear Ben:I am passing along herewith a letter from Mac to Wady which we thought would interest you. Will you please return it to the latter when you have read it? I am sorry you got away without my having got more of a glimpse of ycu this summer, but trust we will co better on your return. I have just had a long visit from our old friend the Bishop .f-rottri Arizona. He asked tenderly after you and he seems to be in his usual good form, especially, as Bill Woodward would say, in the vocative: If you should happen to see Miss Page and CarolyniSwift in Broadmoor, please give them my love. I have a feeling that they probably are not there, but am not sure just exactly what their plans are. , Drop the a. line how you are. I do hope your old enemy is not getting rambunctious again? tt, a ,A_/ 1 LriLt C/ aLg 2 3 3 Et ROADWAYNEW-MIZIC - 0 L-,_, , -N,,,,?4,,,rrLil,E, / 1C1 c -I) A4 ,s.,,,5 044,, ,,,eti.:4,1\ .---1, 1 cr--71 eeC,' I 45r 01 (VA / 4fw 6144/7r4 -e 7(121-( t--44-3t