View PDF

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

I

9,;

The Outlook Company
PRESIDENT

FRANK C.HOYT

The Outlook

Three-Eighty-one Fourth Avenue

LAWRENCE F.ABBOTT

LYMAN ABBOTT

NEW YORK

TREASURER

EDITOR

R.O.TOWNSEND

PAANAGING EDITOR

ERNESTABBOTTsEc,,ARY

LFAMB
December 30, 1920,

My dear Mr. Strong:

I wonder if you will be good enough to look over the
proof of the enclosed article entitled, "The Income Tax and Liberty Bonds",
which explains itself, and give me your views or criticisms regarding it.
I am inclined to think that the suggestion of substituting non-interest bearing notes

for at

least some of

the

outstanding Liberty Bonds is impractical,

but I have ventured to make it with the
among our

readers in

of your permission to

questions of

hope of stimulating public interest

governmental economics.

I should be glad

print such comments as you are willing

summary of them--in The Outlook,

to make--or a

is it not important that whatever action

Congress may take regarding the acute problems

of

taxation and

finance which

the country is now facing should have behind it an intelligent public

and is it not true that the only

opinion,

way you can make the public intelligent on

these subjects is to get them to think about them? I am
Yours sine

Benjamin Strong; Esq.,
The Federal Reserve Bank,
15 Nassau Street,
New York City

ely,

OU,

P. S. I am writing to ten or a dozen other men of financial knowledge and
experience an hope to print their replies with yours in a brief symposium.







Advance proof o f article to appear to
The Outlook o f January < ,1921
5

* THE
AND

IN C O M E

TAX

L IB E R T Y B O N D S

A

N unpleasant, inconvenient, and
in some cases disastrous fact o f
the present financial situation in
this country is the depreciated value o f
Liberty Bonds. A t this w ritin g every
issue of these bonds save the tw o Vic*
tory Loans are below ninety.
T his means that every man who has a
hundred-dollar Liberty Bond and is com ­
pelled ,to get cash for it w ill lose all
the way from ten to fifteen dollars when
be sells it, except in . the case o f the
Victory Bonds.
The Victories, since
they are payable w ithin a year, or two,
are nearer par. A corporation which
has a hundred thousand dollars’ worth
o f any of the first fou r issues and has
to sell them to get cash for its business
or to pay its taxes may lose from ten
to fifteen thousand dollars. The sm all
holders who can put their bonds in
rafe-keeping and retain them until the
day when they are payable by the Gov­
ernment w ill lose nothing. But there
are com paratively few people w ho can
do that.
Various plans have been suggested to
rem edy this situation— a situation w hich
is unsound and unjust. Most of these
proposals are based on a plan o f refund­
ing all Liberty Loans at a higher rate
of interest. A New York financier has
recently advocated that the entire issue
of Liberty Bonds be refunded— that is to
say, redeemed by a new issue o f Gov­
ernment bonds to run for fifty years
and to pay 5y2 per cent for the first five
years, 5 per cent for the second five
years, 4% per cent for the third five
years, and for the rem aining thirty-five
years 4 per cent. He believes that such
bonds w ill sell at par or over. This
o f course means that the Government
would have to raise by taxation a much
larger sum for interest than it is now
paying on the present L iberty Bonds.
The result would make it m ore difficult
to reduce the war increases of the in­
come tax. Thus the problem is how to
bring Liberty Bonds to par in an open
m arket w ithout increasing taxation. I
venture to suggest the follow in g out­
line of a plan to be considered in solv­
ing this problem.
Let the Government announce that all
L iberty Bonds w ill be received at their
par value in payment of the incom e
taxes.
The first objection to this plan is that
the Government needs the proceeds of
incom e t a * « in current money to pay
its obligations';, that Liberty Bonds are
no! curren t; jt.nd that t . h e f l o v e m m u m
..ouiu.uawe to s '.’.l thesf> bonds in the
open market f r cash, which would at
once dep.o-fate their value and we
shohld-be in the same state as before.
M y reply to this objection is that the
Government m ight borrow currency
from the Federal Reserve Bank to the
fu ll par value of the bonds. I f this
could be done, the advantage to the Gov­
ernment would be that it would substi­
tute its non-interest-bearing notes for.
its interest\#g-bearing notes, a trans­
action w hich every business man would
like to perform if he could.
There appear to be two objections to
this substitution o f Federal Reserve
notes for the bonds which the Govern­
ment w ill receive in payment of incom e
First, there is no revioron in our
present financial laws for such a
strb6titt>o< This objection could be met
by proper legislation in Congress. If
desirable, Congress in twenty-four hours
could pass an act perm uting the Secre­
tary of the Treasury to receive Liberty
Bonds at their par value fo r incom e
taxes and issue in their place noninterest-bearing currency.
The second objection is m ore vital.
It m ight lead to an inflation o f the cur­
rency, and many students of finance feel
that we are now suffering from cur­
rency inflation.
To this objection 1
have no reply to make, except that pos­
sible inflation m ight be mitigated by
receiving Liberty Bonds at par for only
a specified portion of the incom e tax,
s u c h as the surtax or excess profits tax.
It may possibly be a choice of evils
w hich the financial experts of the coun­
try w ill have to consider and decide
upon.
I
briefly restate the problem . A vast
amount of money, amounting to hun­
dreds of m illions of dollars, is tied up in
Liberty Bonds w hich are now below
par.
To use these bonds in in­
dustry or taxpaying the business men
of the country must lose from ten to
fifteen per cent. Shall this unjust and
unhealthy condition be remedied by in­
creasing the rate of interest on the
bonds, thus necessarily increasing tax­
ation, or by the Governm ent’s receiving
a large portion of them at par from
year to year before they fall due fo r in­
come taxes and issuing in their place
non interest-bearing currency by means
of appropriate legislation?
A

,

t'

\l

^

L avjbezycb

A bbott.

January Zi, 121.
dotoLts

Dear

Ithini I must aek you to accept this reily to your letter of Decemter
30, it40'as t fireonal one and not or publication.
/

/

amjuet taok from Europe and have not yet had opiortunity to discover
whotiher the article of whloh you sent me t prouf ap,eared in the Outlook or oot, but
I do think t.,.t I should send you a frank oomment on the eogoestion contained in the

article.

The °ejectionr to the ilao whico you pro se are eomorous, but I shall refer

k

to only one ne being, In my mind, abseluteay controlling.

say nineeme taxes" you menn the varioue direct tenkee, NUCL

I assume that when you
,eroon I inC0/26, excess

These taxes, te you know, iroduos a very large
prot'its, on:: war irofitc taxes.
If your plan Aare aao,ted, it would oeftn t)o.t more thin half
amount of money indeed.
of the revenue of the Oovernment wco'd to enid by printing fiat money, - a Aholly uneou(nd ,iroject an,: one *hien would lowve In its trail a wr000 of distressed industrial
ad' butineo- enterprises wten the day of reckonin, arrived.
K

But more than that, the inflation resulting from such ,In operation would
defeat the very object for ohioh it wt. designed, lith rising irioes and the reduced
.:,

purchasinc:power of money, investment securities would deciine, incluoiog Government

bonds t 4not.he Atter oaoe too deciine/being further stimolated by the sentimental ef.oeot Of 't-uch an operotion, which I hel1eve would shook the country and ohake toe confidence Of the general public most Fieriously in the Government's credit.
,

The difficulties inherentoin war fintnoe on the occasion of such a devaetat/
ing }tcar/[:te the one just concluded ap,ear to be unsurmountatio, and 1 think, in general,
The ioesees ooettined by suwe m4$, r6o.rd the losses resulting as unescapable.
scribe e po Government bonds are serious indeed, but eertainly not more serious than
thnee leu0ained tv many others throt01 the various effects of the war, and 1 J.R4 wonderjustify making Government bondholders wholly exempt from loss on this
c
type Of\inVestment, when we are unableto indemnify other large olasseepoC our citizene,
and particUlarly those who have lost !their relatives fis well as some :,t,rt of their
/
property:
I
I should feel very much darmed if a project of this sort were unoertaken.
,

i

.

.
,

'
,

You will, I am sure, understand my writing you quite frankly.
,
'

Very truly yours,
LAO-6nel* t.40tott, E6q.,
?reW6iii; The Outlook Company,
$81 EOurtn Avenue, New York.
,







.71,1




ASSOCIATIOKOF FOREIGN', I liV,D)(,--**1:
4
c;ii...,0;

CORRESPONDENTS IN ,THE UNITED
LA(

01'

WWI

AR,12,-2-

I)

.

J. )

-FEDERAL RESERVE
-

-Apen-3.9in, 1919.

FAREWELL DINNER TO THE EARL OF READING
You are cordially invited to a farewell
banquet to
and High Commissioner and Lord Chief Justice of
England to be given by the Association of Foreign
Press Correspondents in the United States at the
Hotel Plaza at 7.30 P. M. on
THURSDAY,

APRIL 24th.

Cheques for twelve dollars per cover should accompany acceptance and be made payable to the
Treasurer of the Association,
Percy Sutherland Bullen,
Secretary,
6G Broadway,
New York.

N.B.

An early reply is requested.







January 8th, 1917.

Dear Sirs:

order for one year's
subscription to Collier's Weekly, to be mailed to
Will you kindly enter

Mr. Steve B. Hewes, HewesKirkwood Inn, Estes Park,

Colorado, sending bill for same

to nr. Benjamin Strong,

4100 Montvie w Boulevard, Denver, Colo., and oblige,
Yours very

truly,

Secretary to Mr. Strong.

aalli sr

s

416 sest 13th Street,
New York City.
VC

The Outlook Company
L

Three-Eighty-One Fourth Avenue

RENCE F.ABBOTT

PRESIDENT

FRANK C.HOYT

NEW YORK

TREASURER

ERNEST H. ABBOTT

The Outlook
LYMAN ABBOTT

EDITOR

R.O.TOWNSEND

MANAGING EDITOR

SECRETARY

L FAMB

Jant*i.y 22, 1921.

if

My dear Mr. Strong:
I appreciate very much your letter of January
twenty-first.
ballon d'essai.

My brief article on Inceme Taxes and Liberty Bonds was a
It. has resulted in a large amount of exceedingly inter-

esting correspondence.

I quite

/

agree

that my interrogatory suggestion

as to the payment of income taxes' by these bonds received at par is im-

practical because of the inflation that would ensue.

What interests me

most in the correspondence is1 that some first-rate authorities differ as

to the propriety of refundiag the entire issue of Liberty Bonds at a
higher rate of interest.
categorically.

/tome good autnorities advocate this proposal

The weiglit of opinion, however, seems to be against it and

in favor of letting the natural course of industry and finance bring the
bonds back to a par market value.
Again thanking..you for your letter, I am

Yours sincerely,

Benjamin Stron,;, Esq.,

governor of The Federal Reserve Bank,
New York City


http://fraser.stlouisfed.org/
Federal Reserve Bank ofAwn Louis
Ada St.




Form 1204
SYMBOL

Blue

WESTE

TEL

NI

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.

UNION

CLASS OF SERVICE SYMBOL
Day Message

Day Letter

NEWCOMB CARLTON,

PRESIDENT

AM

GEORGE W. E. ATKINS, FIRST VICE-PRESIDENT

appears after the check (number of
words)this is a day message. Otherwise its character is indicated by the
symbol appearing after the check.

92b xb 14
I223p Aug 12

Benj Strong Jr
Iltrcmdshoel as
Have you done anything about article when are you coming
OP

1.0me please answer

colli.as
Peter Dunn
236p

Nile

NL
Night Letter ,
If none of those three symbols

MEWED AT

Wk Erewyork Ny

Blue

Night Message

WESTERN UNION

Nile
Letter

.n.




lac. 34

FEDERAL RESERVE BANK

rw NEW YORK

(SEND TO FILES)

Sent by

COPY OF TELEGRAM
Woods Role 8.12.18 W.U. Night Lotter
August 12, 1918.
D. Dunn, Req.,

h. Y.
,fra starting on an article this week

Will probably finish Friday

Probably not returning until about tventioth.
STRONG

Collier's
THE NATIONAL WEEKLY
P F COLLIER E.9' SON INCORPORATED
416 WEST THIRTEENTH STREET

WILLIAM LEBARON
MANAGING EDITOR

F P DUNNE
EDITOR




NEW YORK

August 29, 1918

Benjamin Strong, Esq.,
Mass.
Woodshole,
Dear Ben:

In accordance with your request I am sendthe article mutilated by my awkward hands in order
ing you
to reduce it to an effective length from the standpoint of
a publisher and further stained by the industrious hands in
our Composing Room.
I also send a proof of the article as it would
appear when reduced in size. You will notice that I have
taken the liberty to place near the top paragraphs which
were near the end of the manuscript. I cannot flatter myself that my changes have improved the article. I would
never have thought of making them if you had not suggested
that I might and if it had not been necessary to gain brevity.

If you are satisfied with the article as it
stands in type, or if you want to substitute another, won't
you please let me know at once? In order to be printed in
time for the next Liberty Loan the article should be in our
hands by next Tuesday, September 3rd.
Please don't forget you promised to call me up
I have some thoughts of political
when you get back to town.
economy which I think might direct your wayward feet into a
path becoming to a Governor of the Federal Reserve Bank. I
may say that John Fox, author of "Drop Dead" and other serials,
agrees with me.
Yours,

en Cs

1r

December 10, 1916.

gy dear Peter:
My doctor, A.ustin W. Hollis, a man of a good deal of

intelligence and a personal friend, has written the enclosed

article, which,I presume, is the outlet for four years of contemplation of the war in which he was unable to take any part.

I want you, as a personal favor to me, to read it
over and let me know just af.1 promptly as possible whethe:* you

think it could be published; whether it is worth publishing;
and the best place to have it published., I am hoping to get
away the latter part of this week and wish, very much you could

send me a reply before I leave.
Cordially,

P444,,,,g440,10044,04,

o Collier's Weekly,
416 West 13th street,
New York.

BS/M3B




Colliers
THE NATIONAL WEEKLY
P F COLLIER & SON INCORPORATED
416 WEST THIRTEENTH STREET

NEW YORK

F.P.DUNNE

WILLIAM LEBARON
MANAGING EDITOR

EDITOR

February 1st

'2-1Nc
11147;

.'"
i

1

9

1

9

7.91)

Pirtrni,L iiiSER1
B444c. Ben:
Y




As IOU may have heard, I have
been under the weather for over a month
and could not attend much to business.
But I will read at once your friend, Dr.
Hollis, article on "The Meaning of the
Great War to the American Nation" and
let you know whether it is available for
publication.

Yours sincerely,

Benj. Strong, Esq.,
Federal Reserve Bank,
15 Nassau Str., City.

fpd-gd




Lake George, N. Y.,
February 5, 1919.

riLING Dept
ON v

I1

41 191)

r.Percer:

MY. etriAL,

nANK
I had not heard of your illness and am grieved

of it.

Kindly accept my apologies for

to learn

burdening you with that

article. It would be a personal favor to me if you could read it
and make some disposition of it that would be satisfactory to him.
Sincerely

F. P.

Dusrla,Req,,

Editor, Collier's,

416 West lath Street,
New York.

BS.MSB

yours,

IT

ii,mi

AN ir

:,`,

Lake George, N. Y.,
February 7, 1919.

191)

n

.-.4dCRAI,

Dear Peter:

.

RZSERIT DANE
.$?7-

11'4*

tff,,e :73
,

Hol1is'
--- --

Thanks for writing ma'-about Dr.
article.

1 feared it could not be used, and am writing

him about it to day.

will be in New York about the fourteenth,
"IcJ14.:

S.Ps''14,06,40




and hone to see you.
Best regards,

Sincerely yours,

Fe Pt_Dunns,_ilsq-,-_,
gditor, Collier's,
416 - West 13th Street,
New York.

BS.MSB

a




LI

Z-1)vmi

;

6

0

June 27, 1024.
;

Der buo Fhur:
-

You d1i recAl oroonver6:.!Lion on the Jte-mer conin; hole,
I prorai&ed to .;end you picture of him,

in rrd tory friend "Jeff."

and print k re enclo-;ed with Cal..

The story zhui. the picture.3 I t'nink
zt,...! tr'eIjn ithc:rienclo in the F.-A

iL1

4f:u

ru.

\se

In 1920

l
little know.ilnd

bj 1-4,4-ile bli.
The populAion i lliçnu, and the
ff the cot of
Jai:ad
of the Dutch. Government; in fct it i
one of the
pLrt of the Patch st Indie3, and i governed by Dutch. re3ident,

ill

t:ff to 1.1i.,t him in the

Other thf..n
the i'.utch Government,' 5 I reciAl
it, doe, not permit ,!..,...ayon,e to :-.;ettlo there, ,!.n.(.1 vlit to the 1.3.1.-.:nd
only be m.c.ie by, ppiicatiori to the Dutch Government in Jv.. The

there 7.:ro no z-lite re,iitient.5; in
i 3 C3Mi.Y.- r:-ti V

ancient overflol,i, of -

crter iore C5i): mil

s but exceedingly fertile.

hich

On our

acro.3..-3 and is no'.

crater,

It eanAr,t..z of the

y to vi.zAt the

lld uunz, Kung, where
e 6Lopi.;ed st.
to4la
thi3 temple. D-31 d took a picture of '30 TR e of the ci...rvinLy.i.
I mt,y o;:y th,t the BL.lino;...e

population Ath a
leania:
their re:Adence, and even the F,tone

eo1e re

c.ron

di!-4cevered

very Ample .,ericultur1

c:rchitacturc.

crved

Mmy of

covered ih little Hindu templtf.. aimilr
.nd the
to the one of which I till 6ending you print.i.

oramentoci.

How it hp2eneci that. "Jeff" founO

pl:ce there is beyond my

imrinAion. I think you iill zrue. thA it riAlJt be "Jeff" 7ben I tell
you that the I.:11iner;e an hi.ve no 11:.ir on their fac- t all, any more

acein to
th.n h4ve the J'Lv;Jnee jeoie, here: "jelf" in thi:t
hve pretty :,e11. develeyed mu,tr,ehe and berd, tilt.veu in tree

"Jeffer,..onizm" 5141e.

o54erve

If you are a all im,ereed in :.rt of thio ch..a..L;cter, you will
curiou medley of Lrchitectur:,1 treAment in the building.

of the 0 1:IA1'1'Am to., ion sp;..!e!tr::: to Le o

2:ome.

very ,.nclont Ayle, re.mblino;

mother fiure in Che picture b a di .1tinctly
di!trikinE recilbl,:alce to the
neErcid ct, !e,here s the g,x,oyie
both

Lnd:gree.:37,

ueveloEaent of c.thodrz....L.: in the miedle :Ige-fJ in contiaentl

Europe!.

coily fr..rAod to .3e1.14:1
I at ter., ,i!N at fir,t to '.w..ve the
to you bo.t you-Flvy preft-:r to put it in an ,Ioum or otherAe proerve it,




,

11.

LI r.

o I cm

Lr. Bud 1
c/o 1c

nin It Just

).cr,
c)ck.

Pull tcr Su14ing,
litIN York ity.




ither

it cme from the photogrphor.

6. 27. 24.




dee

t/t,

20-24 VESEY STREET NEW YORK, N V

WHITEHALL 9000

1.-LERH0NE




Ngtv- .gorlt 'Orrting- Vast
OUNDCO 11101

October 30,1925

Mr. Benjamin Strong,
33 Liberty Street,
Nev York,
1:Ly

dear Governor Strong:

Permit me at this late date to
express my apreciation of the
opportunity you gave me to meet

Dr. Schacht at your dinner the other
evening.

I for one feel very much closer
to some of Germany's problems than I
did before your dinner.
incerely yours,




0-41

41):/4

Colliert
.

AzTtelsTAWAIMthit....v

A.C. G. HAMMESFAHR
SALES MANAGER OF ADVERTISING
NEW YORK




October 18, 1915

Mr. B. Strong, Jr., Governor
Federal Reserve National Bank
62 Cedar Street
New York City
My dear Sir:

I am sending ou under separate cover a copy of the Octob9é 23rd issue of COLLIER'S,
u will find an editorial On
on page 14 of which
the great War Loan ,Which I think will interest
you.

Very truly yours

a gh -k




ia,4244.

/9/4-




11:-.)-4-tir
1-f

jovember 22nd, 1915,

Dear Sirs:

Mr. H. ?arkerWillist rocent book,
"The Federal Reserve" arrived safely, nnd I
would appreciate your sending me anothr copy,

togrAhor with statement of cost of same.
Very truly yours,

ors. BouP:
Garden City, N. Y.
VCM




December 7th, 1915.

Geatlemen:

Please send to :Ir. Benjamin Strong, Jr.,
62 Cedar Street, six copies of the book "The Federal Reserve", published by Mr. H. Parker

Very truly yours,

Secretary to Jr. Strong.
:essrs. Doubbeday, Page & Co.,
11

est 32nd Street,

New York City.
VGLI




Worn,.

Immalca-

nmGen.m

DOURLY:DAY PAGE Se CO.

MAGAlm.

GARDmN C

TIER C OENTRY LIFE PILE S S

--G

Se4.

<9

-

, N.Y.

.#7..,
<9
los

November 16, i915.
Dear Sir:

At the request of Mr.H.Parker Willie, the author,

we are sending you a complimentary copy of his little
book, "The Federal Reeerve" Which we have just publiehed
ae an addition to our "American Books Seriee."

You no

doubt are familiar with Mr.Willie'n writings on financial
subjects turougn nil articiee tor tie Journal of Commerce,

the New York Evening Poet, and otner tinanciat publication,.
We hope that you will find the little book interesting
and worth while and Should you be moved to any comment upon

it we Should greatly appreciate a line from you.
Your

sincerely

DOUBLEDAY

HEM.HA

Benjamin Strong, Egg., Governor,
Federal Reeerve Bank of New York,
New York City.




rrhoPt 6VA-7
C

TRE WORT.,
WON E

TEE NATURE

LIBRARY

DOUBLED AY PAGE & CO. CoturrEnTri

II:AMERICA

TEE GARDEN
MAGAZINE

nOMErrolor,r,

THE COUNTRY LIFE PRESS

N/

GARDEN CITY, N

December 10, 1915.

Mr. Benj. Strong, J r. ,
62 Cedar Street,
N.Y. City.
Dear Sir:

Referring to your esteemed

order for six copies of "Thc Federal
Reserve" we regret to advise that this
book is temporarily out of stock and
shipment will therefore be delayed for
a few ,iays.

However, just as 30071 as

our stock has been replenished, the order
will remeive our most careful attention.

Trusting the short delay will

cause you no inconvenience, we remain

Very truly yours,
DOUBLEDAY PAGE ec COMPANY

r\




E

inntiattbtInø.
NEW YORK

Mr. W. Randolph Burgess,
Federal Reserve Bunk of New York.
Dear Dr. Burgess:

In line

with your

suggestion, I am submitting

a ollestion which our office would like particularly to place
before Dr. Schacht.

story which came from




You are doubtless familiar with the

Berlin

last week.

44,yra,?

eAssariateb Press.
NEW YORK

Has your visit been concerned with

na world financial

compact" which would ensure Wall Street's control of the
world's money m..rkets?

(Berlin dispatches on Nov. 6

reported that such

a development was expected from your conferences
with American and English financiers in New York.)
In this connection, also, are there any plans for

New York and London to give Germany financi-1

accomodation

which will enable her to extend credits to Russia for trade
purposes?




DAY

BERLIN

P)*---A "world pact

Nov.

whioh will

1

EnsurE

EvEntually

thE
Wall 3trEEt an undisputEd.hEgnnony in

world's monEy markEts

to rEsult

from

is ExpEctEd by GEman financial oirolEs

York bEtutEn
confErEncEe now prooEEdiqz in NEW

Ohhaoht,, hEad
English finanoiErs and Dr; lidalmar
14mErican and

a

thE REichsbank.
GEM.DR,

BRP 6 1615




12Ip

r7k-nr.TM.r




J,)
21q

/1//6-

/9/

BENJAMIN STRONG

lAstee Park, Colorado.

September 20th, 1916.

My dear Noyes:.

I have been intending for some time to write you about
the discrepancies which appear each week in the calculation of
the nevi' movement of currency to and from the interior, and am

reminded by an article in the Evening Post that it has been overlooked, this article having been published a few days ago, calling
attenticn to the discrepancy of t40,000,000 in the cash movement.
think you will find that this is largely accounted
for by the shifting of cash through the Federal Reserve Bank of
New York and the Geld Settlement Fund.

If one of your representatives will call at the bank
and ask them for an explanation of this operation, I an sure it
will be found possible to get a very much more accurate forecast
of the bank statement than can be made otherwioe.
The following is what sometimes happens:

hen

ew York

exchange is at a discount, say, in Chicago. St. Louie and other
Western cities, the /ederal reserve banks at those points aeaumu.
late considerable amountssof 14ew York exchange, which is shipped
to us for their credit. We collect the checks through the Clear.

ing House, which resuits, of course, in large credit balances and
a considerable lose of cash by the Clearing iiouse banks. On
Thursday of each week, we ee'tle the balances owing to the other
reserve bunks through the Gold Settlement Fund. That is to say,



.

To

A. D. Noyes, Beg,

Sept. 20* 1916.

gold held in the Fund whic counts no part of our reserve, ie

transferred to the credit or the other reeerlee banks and then
counts as part of their reserve. When these balancee runes°
heavy au they have recently as to exhauat our balance in the
Gold Settlement Fund, the New York bank surrenders gold certif.-

icaies to the Subtteasury in New York which are there cancelled

and reissued in Washington in the names, of course, of the banks
with which we heve settlements to effect. This operation has
the same effect an a shipment of currency.

.1 am sure that my associates will be glad to give your
representative ouch information every week as will enable you to
take this movement into account in forec-Aing the bank statement.
Very truly yours,

A. D. Noyes, Esq.,

Care New York Evening Poet,
New York City.
BS/VCM




Denver, Colorado,
December 16, 1916.

My deareUozeiti,
Thanks to you, the tedium of my exile out

e in Colorado

has been broken by a few days which I have been ab
enjoy While reading

to thoroui.;hly

- "Fieencial Chap(s

d'.

It is far and away the best thing that I have r
subject and, as you realize better

n the

it deals with so many

-21UL-a with which I have had

one) that 1 can appre-

elate the care and thought that

even to AS preparation.

There are a few unimportant Useeic

ot of usfficient moment to
runs through a number

refer to unless as

e to have me, I would be

of editions, in tihic

glad to write you i

hic and logical statement of

This

h there could be written between

facts co
lines so

interesting

the publ

that I an almo

them all 0

ories of occurrences that have never reached
tempted to take the time some day to write

ody with your facility of expression work

Ahem into e story.

winter and

the

As you know, I spent over two months

while there got much of What

in

Europe last

mi-ht be described as the -

"underground story" of the occurrences Mitch you relate and Which are

of even more humen interest than the personal chapters in our own ex-

periences following the outbreak of the war.

Someday also we may. have

opportunity to discuss those matters and should you happen to be in tho




2.
December 18, 1916.

To - Mr. Noyes.

neighborhood of Denver before my retern, please let me know and try and

arrange time to spend a few days here wit!'
I cannot close this letter without refe 1., to the reviews
appearing in the Chronicle of December 9th and t Chronicle's editorial

of that date.
termined systematic

The Chronicle has unfortunatel-

criticism of Vie policy of the Hes

of issues of
nor the one discussed in the

anks in the ma

Federal Reserve notes. Neithe
Editorial seems to be compr

template a particular study of

em.

Should you at any time con-

'9 .ject, wont you be good enough to

ity is placed to your disposal

let ma know and I A

itors of the Chronicle seem

to get the facts
unwilling to inve

o in s
Clea

to re
the

n referring 1. the gold movement states that -

itoria

The

nexplicable

'u)plies of money pass ar.9a7,- from the

House banks in o the Reserve banks and then disappear never
This is ab t as sensible as blaming the Croton
.Lqueductfor
e water reservoirs of New York City when all
rmitting their taps to run day and night. What is

taustion Of

householder

happening to the gold is gummed up roughly as follows:
1. The Reserve 3anks are holding larger amounts of gold in

their general reserves because of the increased reserve requirements
of member banks, resulting from the general enlargement of deposit

liability of all national hanks.




3.

To - 1.1r. Noyes.

December 18, 1916.

The Reserve Banks have gradually accumulated :265,000,000 of
gold against issues of notes, which gold does not appear in bank reserves.

he general fund of the United States

vernment contains

more gold since last July by a considerable sum,

to income tax collec-

tions, etc., Which have not yet been disbursed.
Small denomination gold cert

in

gold are being used

large volume

-

The actual cash reserv

5.

d to hand
ans of the country, held

in the form of gold certific

ased in the Reserve Cities

and with the country banks much no
Reserve City of New

against imported

dly than in the the Central

or

e annlysis of the Last

blish e

condition report to

by the National City Bank

this month.

The Federal H
great bulk

een the distributing agency for the

e gold

Europe, that part ahic'e has gone to

the into

or being ethibited by the persistent

Nev Yor

°serve

in

execs

bank,

f the debits

e)ods shippe

vh

credit balances of the

for a recent period have aggregated 4390,000,000
lie import gold is sent to the interior to pay for

, and it would go anyway eines there no Reserve Banks

in existence, only the cost of sending it would be considerable, Whereas the
transfer through the gold settlement fund costs nothing.
Were the Federal Reserve

teat in

proper form

the greater part of

this gold would noe be hold by the Reserve banks end represented by Federal
Reserve notes, either in circulation or held by the member banks in their
reserves.




Let ma repeat bow greatly I have enjoyed reading yOur book,

Which I hope has a very wide circulation.
With kindest regards,

Very truly yours,

BS/CC




;NTetri Writ gttitin# Vol
December

26, 1916.

Benjamin Strorg, Esq.,
4100 Iontiver Boulevard,
Denver, Colorado.
Ey dear Strorg:
I an- greatl., obliged f r your friendly letter

regarding

my "Financial Charter

discriminating a

that it interested so well info wed ard
I an aware, better than anyon

acies crept in,ard am alread
cases importart, alteration
.- ardirg information which

r", and an glad

of the

critic.

else, that a number of inaccur-

makirg minor, ard in ore or two
on the plate.

Vhat you say

re-

ou could give me is extremely wel-

come, and I shall certain y take aldvartage of your offer in
or of the book.

case of a general rPvi
text was written or th

So

much of the

basis of information which was necess-

arily partial, and so many of the matters discussed have leer

affected by subseque_t developments, that many charges would
undoubtedly be rece eary.

Like y, I fail entirely

to

understand the violence

of feeling on th

part of the Financial Chronicle regarding

the io1ic3 of th

Reserve Barks in the matter of gold and

Federal Reserve notes.
is very apt to

The Chronicle has curious hobbies, and

o off on a targert in

ratters of this sort

ard to stick to it ever when the facts have beer prover-agairst
it.




Trusting that you are fully recovering your health,

irbe New Roth egbeltilt#1)00

ard with all the best wishes of the Seasor, I an
Yours very truly,

adr-sr




131

Netu gork tkflut9001-

RECEIVED

couN0,0
1

DEC 13 1117

801

12, 191

Decer

)

e cexe

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

<4;?:l

/

/I<

iA

My dear Strong:-

ftNkilt0
9---"--

..:-F--

fil

MAIL TELLER.

The Evening Post expects to include in its Annd-SWEINEBNi
yogic
Financial Supplement a symposium of brief statements on the

financial and economic outlook from a carefillic'6d,e/r.
group of Tell-known economists, public men and LtiiialC714547.
In this I am very desirous of including you,T vi7s14711PW4We'a7W

briefly expressed.

I do not wish in any way to confine the expressions
of opinion to one or another aspect of the situation.

Some-

times a few lines on the extent to which the calntry's futures.

financial fortunes are at stake in, the issues of this war are

more impressive than anything else could be.

I enclose a set

of queries which we have sent to bankers and financiers at
various points throughout the country.

But you will yourself

be the best judge as to what should be the central consideration,
even if treated in a few sentences.

I sincerely hope you will see your way to do this.

It

is not a question of the Evening Post, but of assembling somewhere a group of cool and sane opinions from men of high and
responsible position, at a time when the public is sorely in
need of just such enlightenment or encouragement.
If, as we hope, you should feel disposed to give us your
views, we should like to receive them between now and December
20, when preparation for the special edition begins.




Very truly yours,




Ndu 111:1 tit T.tirnin4 Vot
coUNDE-0
1801

FEnR,,L RESn'jt PAM(

On economic and political grounds, do
you expect early peace or prolonged war, and why?
How would the business situation and

the national prosperity be affected by another
year of war:and how would it be affected by the
early ending of the war?
What do you regard as the strongest,element in this country's economic position, and what
do you contider the chief dangbr to be avoided?
In caPe of increasing war costs, ought
taxes to bear a larger share than now of the total
expenditure, or less?

In view of our 07n financial activities
in the war, what, in your judgment, will be the
economic position of the United States in the period
after the war - both individually and in relation to
the rest of the world?

H431. 1Pth, 1917.

Iy dear Noyes:

I am moru than sorry to be cornelled to refuse
your request for a B tut en eut for he Azmual. Financal Sup-

plement of the )?vening Post, but the fact iu thit I have not




oeen very fit since the close of the laat Liberty Loan campaign and have found it necessary to be away from the office

for some time and leave undone all bit the essential things.
And While I might make a. specil ef fort to get ur a short

article for you the fact is that 1 have refused a number of
similar requests within the past two weeks and feel that I
must be consistent.

Feeling sure that you will understand the situation and with kind regards, I am,
Very truly yours,

k..._11.-2RY.#4* 78(1'1 4

Financial )itlitor, he1vening Post, 1,_
P. 0. Box 794, Few York-tray
VC);

tflje

XPil3 gortt FAIntin4 Pot
co'-N0e0
18 01

0

December 6, 1918.
Hon. Benjamin Strong, Governor,
Federal Reserve Bank,
120 Broadway,
New York, N. Y.

iu 19ig

My dear Stiong:
The Evening

years, to include in its
of brief

Post

Annual Financial

statements on the financial and

carefully selected group of
financiers.

briefly

expects, after

In

this

well-known

we hope to

its

custom of past

Supplement a symposium
economic outlook from a

economists, public men and

include your views, however

expressed.

I enclose a set of queries which we have sent to
bankers and financiers at various' points

throughout

the country.

They will indicate the points on which, as it appears to us, the
public is most anxious to get light.

You will yourself, however,

be the best judge as to what should be the main consideration,
even if not included in
If,

our

query.

as we hope, you should feel disposed

us your views, we should like to

receive them

to give

between now and

December 20, when preparation for the special edition begins.




Very truly yours,

Financial ,ditor.

Xetu girk T.benintic Pot
couN0,0
1801

C)

December 6, 1918.

Hon. Benjamin Strong, Governor,
Federal Reserve Bank,
120 Broadway,
New York, N. Y.

a

My dear Sti,ong:

The Evening Post expects, after its custom of past

years, to include in its Annual Financial Supplement a symposium
of brief statements on the financial and economic outlook from a
carefully selected group of well-known economists, public men and
financiers.

In this we hope to include your views, however

briefly expressed.

I enclose a set of queries which we have sent to
bankers and financiers at various' points throughout the country.

They will indicate the points on which, as it appears to us, the
public is most anxious to get light.

You will yourself, however,

be the best judge as to what should be the main consideration,
even if not included in our query.
If,

as we hope, you should feel disposed to give

us your views, we should like to receive them between now and
December 20, when preparation for the special edition begins.




Very truly yours,

0




a.fbt Xriu gark 7gi)eitilv Pot
coUN0E-c)
1801

in the larger view, do you look for continuing prosperity or for industrial reaction in the
United States as a result of termination of the
war?
Will the immediate future differ from the
longer future?
What is your expectation as to the course
of prices in the commodity markets?

How far will disappearance of the war orders
be offset by the filling of postponed commercial
requirements for home consuTers and neutral markets,
and by demands for purposes of reconstruction in
the damaged districts of Europe?
these to materialize?
How far will they depend
on prices, and, in the case of foreign orders, how
far will they depend on our advances of credit to
such markets?

How

Can wages be maintained at the present level?
If they can, then how will the market for the products be affected?
If not, what wil
situation?
Is there a prospect of reducing the present
volume of bank loans and of Federal Reserve notes?
Have we ahead of us easy money, or high money?

What do you consider the most encouraging
facts in the financial, economic and political
outlook for this country, during the period which
will follow peace?
What are the chief dangers,
and how may they best be avoided?




December 10, 1918.

My dear Ur. Noyes:

I am just arranging to leave for an absence of

indefinite period, and if it is possible for me to prepare
soTething, as suggested in yours of the 6th instant, in

time for publication, I will be glad to do so.

I am so

rushed at the office, however, that I can hardly expect to

undertake it until I get away.
-

Very truly yours,

Alexander D. Noyes, Esq.,
The New York .Evening Post,
Ne.i...yoik.

153/1L3B

it1JeNet13 gortt bininJ3

11104

couNoo
1801

December 13, 1918.

Hon. Benjamin Strong,
Federal Deserve Bank,
120 Broadway, N. Y. C.
My dear Governor:

I have your letter of the 10th relative
to the matter of participating in the discussion by
of our economic future in our Financial
Annual. I greatly hope that you will be able to do so,
as there seems to me to be need of thoughtful and wellconsidered expression of judgment on such matters and
in this way. We can probably handle any communication
up to December 28th, though_ of course the earlier we
well-known men

get

it the

better it serves our purposes.
Very truly yours,

Financial

adn/hmh




ditor.

tThNew gorttjgbotin4 Pot
couNo"
1801

December 13, 1918.

Hon. Benjamin Strong,
Federal Feserve Bank,
120 Broadway, N. Y. C.

My dear Governor:
I have your letter of the 10th relative

to the matter of participating in the discussion by
well-known men of
'Annual.

our economic future in our Financial

I greatly hope that you will be able to do so,

as there seems to me to be need of thoughtful and well-

considered expression of judgment on such matters and
in this way.

We can probably handle any communication

up to December 28th, though_ of course the earlier

we

get it the better it serves our purposes.




Very truly yours,

Financial

ditor.

eolnle New goaT.tintin4 3t
coursio,0
18 01

December 13, 1916.

Hon. Benjamin Strong,
Hon.
Federal Deserve Bank,
120 Broadway, N. Y. C.

My dear Governor:

of the 10th relative
in the discussion by

I have your letter

to the matter of participating

well-known men of our economic future in our

Annual.

I greatly

Financial

hope that you will be able to do so,

as there seems to me to be need of thoughtful and well-

considered

expression

in this way.

of judgment on such
the

earlier

truly yours,

Financial




we

the better it serves our purposes.
Very

adn/hmh

and

We can probably handle any communication

up to December 28th, though. of course
get it

matters

ditor.




Form 1201
CLASS OF SERVICE

SYMBOL

..agram
&Day Letter

Blue

Night Message

Nile

Night Letter

NI

lre,

WESTERN UNION

If none of these three symbols
appears after the check number of

wnrds) this is a telegram. Other-

.te character Is indicated byte
symbol appearing after the check.
,.

BIRIVRIP MC

WESTEkASN1 UNION
m.15;41,
AM
,,,T.T.NEPRESLIDENT

GEORGE W. E. ATKINS. FIRST VICE-PRESIDENT

CLASS OF SERVICE SYMBOL
Telegram

Day Letter

Blue

Night Message

Nite

NL
If none of these three symbols
Night Letter

appears after the check (number of

words) this is a telegram. Otherwise its character is indicated by the

symbol appearing after the check.

4

DA NEWYORK NY

HON BENJAMIN STRONG GOVERNOR

DEC 21

1918

SUS
FEDERAL RESERVE BANK EQUITABLE BLDG NEWYORK NY

M ARE EXTREMELY DESIROUS OF HAVING YOUR ANSWERS TO QUESTIONS RECENTLY
SUBMITTED TO YOU

WE CAN USE YOUR COPY IN OUR ANNUAL FINANCIAL

NUMBER IF RECEIVED NOT LATER THAN DECEMBER TWENTY SEVENTH

IF YOU

CANNOT SEE YOUR WAY CLEAR TO ANSWER ALL QUESTIONS ONE OR MORE WOULD
BE APPRECIATED

NEWYORK EVENING POST
9427M




lAcembor 23, 1918.

New York Evening Poet,

20 Vesey Street,
Nev York aty.

Deqr Sirs:

ram of the 21st, I regret

Aftswertng yyrnr

ut of the city and is not
is away for a rest.

that

cted at

he

offt6,0
1

C

1 b 4eve Ur. Strong

j

4

/

d the reas9e whx he could not prepare a

stAte-ert f r jthe Annual Fi
Post.

ttor of December 1Pth

_cial Supplement of the Evening

1

Very truly yours,

GB

Secretary to Mr. Strong.

December 24, 1918.

My dear Noyes:

I have been away, as you know, but, so far, have been

unable to prepare anything for your financial annual.
To-day I have hastily dictated something which is to be

mailed to me in a day or two and if it can be got ready in time

I will be glad to have you use it, otherwise, please tear it up.
Very truly yours,

A.

i. Noyes, "38(1.,

2inancial Editor, liew York Evening Post,
20 Vesey Street, New York.

BS/MSB

signel in. r. Strong's aence.




TELEPHONE BARCLAY 4200

20-24 VESEY STREET, NEW YORK

titht pot

Tile New gorlt

December 15, 1919.

DEC 16 1919

Eon. Benjamin Strong,
Governor, Federal Reserve Bank,
New York City.
My dear Strong:

Your letter of the twelfth reached me while I was
laid up at home for a couple of days.

I appreciate your feeling

in the aatter of writing for our annual number, and yet I know you
are sure to be so broad and clear in what you write as to remove
any possibility of adverse criticism.,
I should like above all things to see you and talk
matters over;

in fact, I have been trying for a week to make sure

of an hour or two in which I might be fortunate enough to make
such an arrangement with you.

I shall look forward to having such

an opportunity before long.




Very truly yours,

,5

TELEPHONE BARCLAY 4200

20-24 VESEY STREET. NEW YORK

rtjt Nen) gork fa) enitua
December 15, 1919.

DEC 16 1919

Ron. Benjamin Strong,
Governor, Federal Reserve Bank,
New York City.
My dear Strong:

nnoi

Your letter of the twelfth reached me while I was
laid up at home for a couple of days.

I appreciate your feeling

in the matter of writing for our annual number, and yet I know you
are sure to be so broad and clear in what you write as to remove
any possibility of adverse criticism.,

I should like above all things to see you and talk
matters over;

in fact, I have been trying for a week to make sure

of an hour or two in which I might be fortunate enough to make
such an arrangement with you.

I shall look forward to having such

an opportunity before long.




Very truly yours,

6 -5

o
0




3

4e6(

(çiifà

6a
a

Juno 13, 10'32.
My dear Sr. Noyes:

Your note came this morning just as I was about to write you
RS I had promised Mrs. Noyes.

The courier for Jaen is I. J. Nishi. His regular mailing
address is c/o ,Iliyako Hotel, Kleto, Japan. He is really an eAceptionally
capable man, and while of course one must nat let-,loIn the bars too far
ho nevertheless is riulte a companionable
with a person in that
folk, filled with infomation about japc:.n, and To found that he added
Ho wss reco!mmonaod to us by i'eter
,ho had emoleyed him some years before, and I had him tharou;gh-

greatly to the interest of the trip.

ly investigate.d.by the lank of Japan officials before I decided to employ
They gave him a very good report.
him.
As Mrs. 7oyes states that you -lin only be a month in Japan, I
hesitate to make any very definite recmmendati,ins about your trip. Cne
,of the moot interesting thinc5 that /0 did was to spend a couple of ni,;:hts
at Keys San, :hich i no more than a s.:.1testion of D.,_IddL:f:tmonastaries on
the top of a mountain 4ith a little Villje Ojalcent and a very -vonderful
old cemetery a mile C)1 more in extent leaatsd in a ma&lificont grove of
To me it las one of the most imoressive things that
Cryptmeria trees.
,ve sag.

I las disap,,:einted in hiys Jima,- A cruise of al-cut .a week or
ten days that we made in a. junk in the Inland Cea Tao in over gay delightful. -fie were fortunate in havin;g good go!Aher and esoecially in having

:!..fullmeon.Ift.vou will be fortunate

and 1111 be

reid for the crulso under those conditions.

To really sec Japan enc must get &-way from the coact cities,

but there are some cxsr.odinly intarectin7 trips right near the big cities.
Ono of thom is to come) d,22:la the rapids in a. river, the name of rhich I do

not recall, it brings you nut not far

from Tokyo.

I am ooIrv t,e take tI.J=J liberty of sendiog you 505.0 letters
introcluction to fil_endn throu.,!-,hout tho East, but in ardor to avoid a

of

enough to givu me your itinerary.
If you visit Java, I especilly -4ould like to give you letters to booking
frienda there, and lou13 cartf.nly rosommend your visiting the Island pf
t is cn of the most primitive
Pali,, which is th.) neat island cast,
duplic!Aion of advises, 'scald T..e.a be

com7anities in the i'!;ast in E01'10 ways, rzid th.7,1%,; you 'All have the expeTience

of travelling over a bctiful voic:',ole island, uagaificant
there arc practically no Ihit;e peelJle




vlhure

of tb:-) Dutch Covernmant effti.c),

#2

June 13,'1V.,?.

Mr. Noyes

viii find
and of course you will star at the Dutch rest houses uhich you
(-I very comfortable.
will
If you travel through Java and go up the Malay Peninsula, it the
spolak Yaley, as that is
be desirablo to have a guide or courier who.cen almost all of the
and
most common language throughout that section
hotel servants and others und.rstand,it.
you go to Siam,
I as unable to visit Siam or jndo. China. at Eangkek, 4.110
I .would like to give you a letter to a Danish friend giving you aline on
Iaz. sure, greatly add to the interest of your trip by
shut to do.
- which sas unable
In Eurms, the trip up the Iragadi River members Iof tho party to
did
make on account of the heat , cut shich the other is a moot interestiog
make - is not especially intereoting; but Landalay pagodas to to found
beautiful
old. Eastern community alp G;)ii1C.3 of the moat
The trip up the irasadi above Landalay they tell
anyshere in the East.
me is very beautiful and interesting.

will
If you go up the alay Peninsula from Singapore, I hope youto
accept reservations as
not fail to stop off at Cualla Lumpur (please
The motor trip from
spelling as I m dictaing entirely from memory). right through the
built
Cualla Lumpur over a nes mad shich has been
railroad hotel in the
Jungle is sell worth making and there is a splendid that trip you ;ill
Tolcin,
etaln vhere you 'ill he most comfortable.
tkfllangand there taLe a steamer to Calcutta. df course DatV.,
probably go on
he cold -shell you are there and probably act feasible, although
jeeTing
in the world.
.thevies af nachin unga is one of the most Eorgeou
Governor
sould like to sso! you lotters to Lord Ilonaldshay, tale the
kno4 but I Jill
General of Pengsl. Lord heading you already
I shall also send you
oDuortunity of sritiug hdm if you .ill permit ma. of the Viceray&Council,
a letter to my friend Ar. hailey, Finance :Leiter
1 did not get to
Es:mtay.
and to Sir George Lloyd, G-..)vernar General of certainly Jant to go to kgra
You ill
Madras, nor did i viLit Ceylon.
and there cro t3M0 root intereting old ruins of
to visit the Taj Mahal,
of the slave kings in Chat region.
the flogul dynasties and of the period In.Delti you vill save suns similar
Do not f1l to visit Fattipur :1%ri.
interestiaE trips to old ruined cities no completely. deserted, see the
the great
capital of the Logul Kings, and in the galled ton visit haIrdeAinzNorks
to be
ojoyed our stby at Esnares,
constructed by Akb.s.r.
on they told
there, ho ever, khea there sas a full eolipso of the moon, to bathe in
pilgrims there
us there were some hundreds of thousands of
ar-.;Jttea, and of course you v..7Annot
sight ROVeI to
the river. It .-,M1,3 a the eclipse, butto you-c!JIn select a psriod of
if
have the advantage of
be well ,iertt stopping there for a fey days.
pilgrimage, it Aould




-

,

(i)

Mr. Noyes

113

June 13, 1,??,2.

1 told Krs Noyes that. she Iould enjoy visitins the establishThey have the best gold and silver brocudes

ment of Gerdi and Hari Das.

a in India, and possibly it is net quite Pair to are. Noyes to give you
this warning in advance for it may be expensive. It is at Fonares.

I vas unable to get to Udipur and the deserted cities of that
section rhich the7 say erelost wonderful of all in India. Kashmir will
probably be inaccessible on account of the snot", Oen you are there.
can only be reached by automobile er aag-:11.

It

The Indian Government was

aLill in Simla when oo, acre there, but will. he in Delhi in January, and

I doubt if the trip to Simla lould pay.

Travelling in an Indin train at night neoesE,ittes tskini.; soivo

You 4ill need your on sheets 9nd
_,ad
sleeping erluinment.
blanLets; but
did n:71., fin ,1 it necessary 'cc ta7,:e any hevy teddinj as
the bunks are reasonably *all upholstered.

Eein.g there cut of the usual trn.vellin seoxon
cf course,
encountered mcre7Dsgults than you will, and I ehould say that geneally
the things
guard against in. travellirq in the East nre the following:
The sun.

Pram the middle of' the ,alornir-, untilcuite late

in the afternoon do not -I'd' In

hot sotlus.

.,?ear .a

stcu.%

;roteetion in

Cne does not become aware of the influence of the cun
tntil it is too late snmetimes, J,le it is a c,recaution 7?hich every American
shouAd tole Nitheut rail. This is eapecially true in ind1a-

Do not drink any water that is nut bsttled srd of a wellTan San in Japan is the test. Thera are a great variety
to be had in the Dutch Indies and in British India that are good.
knovn brand.

Uncooked food of any kind, I believe is dangerous and any
fiah which has not been very thoroughly c)ase.

If there are mosauites about take recautians that yuu do
The varieties that carry malaria fevers are principally
found in the foot-hills of the Himnlays Ucuntains, hut they are dangerous
all through the Enst on aeoeunt of the rice fields vhlch are breeding
go-onn& for them, and while some people advice you that it is lerfootly
safe to sleep at night undoea fan cr runk.a, I believe myeelT that it is
mach safer to have a good mesrluito not. ost or the hotels provide them.

not gat bitten.

1 perconrily believe that a great many 1,uoplo are unduly concerned about these daners and that reason able crecutiens on the p_.cintn
that I have sentioned are all that are reuirr, i, and travellin::: is perfectly
safe and reasonably comfortable.




June 13, 10?2.

#

I cannot tell you much about China as the aeathe-e prel9eated
my getttn,,:; t the Anterior.

C:,ne of the most important precautions to observe is to hook
up steamship 2.o.sge .vell in advauce, mks sure that your location on the
eteemer is absolutely .contrexted, and thct the steamer will sail Ihen
scheduled. They have a disagreeable .lay of changiar; thsir schedules and.
not notifyinc you. I .as delayed some weeks at one point by having that
happen.

As to your business arrangements 4ith Nishi. As I recall, is
r'aC 3 yen
paid him 4 yen per day per -erson Ihich is about
I think his arrsnerient re subject to serge reer da,id for his expenses.
EZ,jueUent cnd he Tay have changed his rc.tec since ve lere there. Put
I %fro cenvinoed th3t'he we thc,rouE,nly honest, never overcharged us,and
ho keeps the most. accurate accounts of the money he spends.

ionit you let me kno.,-; if the above is about That you cant

fld

particolarly dye i.e some idea of your itinerary so tht, 1 can send the
it 4No ay.reat pleasure to see you and Mrs. Noyes and I 4ish
I might have it oftener.

letters.

Yours sincerely,

F1'ank 13.

c/o The Associated Press,
star Luilding,

Vaainztn, E. C.

ES.W1




e

FRANK B. NOYES,
WASHINCTON, STAR,

STUART H. PERRY,

ADRIAN TELEGRAM ARt TIlE,
SECOND VICE-PRESIDENT.

BROOKLYN EAGLE,

FIRST VICE-PRESIDENT.

PRESIDENT.

MELVILLE E. STONE, COUNSEL01,
FREDERICIC ROY MARTIN, CENTER. MANAGER

2

if/wri

HERBERT F. GUNNISON

KENT COOPER, ASST. GENPRAL POMANDER.

J. R. YOUATT, TREASURER.

JACKSON S. ELLIOTT. ASST. GENEBAL MANAGER

MILTON GARGES, CHIEF OP TRAFFIC DEPARTMENT.

D I IIIECTOR S.
VICTOR F. LAWSON, CHICAGO DAILY NEWT.
W. L. AncLEAN, PHILAOELPHIA BULLETIN.
FRANK B. NOYES, WASHINGTON STAR.

ADOLPH S. OCHS, N.. Y.. TIM.

`-

CLARK HOWELL, ATLANTA CONSTITUTION.
S. NMCLATCHY, SACRAMENTO BEE.
CHARLES HOPKINS CLARK, HARTFORD COURANT.
CHARLES A. ROOK, PmssuRN CHSPATCH.

c0,-7,

nrilr''')Ifl

WL,T.ii)(37--!D

JUN 13 19 44

H. COWLES, SPOKANE SPOKESMAN-REVIEW.

ELBERT H. BAKER, CLEVFLANO PLAIN DEALER,
JOHN R. RATHOM, PROVIDENCE JOURNAL.
FRANK P. MncLENNAN, TOPEKA -.TATE-JOURNAL.
H. V. JONES, MINNEAPOLIS JOURNAL.

PRESIDENT'S OFFICE.

STAR BUILDING, YtAWNIT.4-4-.1N, D. C.

D. MOO., NEW ORLEANS TINEs-PwArims.
LANSING RAY, ST. LOUIS GLOBE-DEMOCRAT




scle-1

-

10

'

J.

zr:_vc, us s oTe

0.eLe guide
2111:LE;

fo-,

0.11

1:11

5.-i

3t
-4

t L.).

L.,

,

,

e

L11

2.L1- to

10

c

Ict Le

171
-7

I
'1.
e,

C

rfAI,
pie gtTrtilt5Sfar-VjfreSu.'itil-aV,.%nr
WAS HI N GTON, D. C.

a




_,

$

I7"

-,-'

1 5iTaau

t-,":-,
-

I,

-FT 7,

-

e

111U 7)11 f r

-

-

t

0 10 thO:r011::
-' ten t07.._,72:(AV

Ct

=

Cr=7:

:77 CI

,

t7.-.7

vc;.%.:

7

7o1,-.

of

417

=,

^1^,

t

t
rs,a7(7.E:1,
o

,

.

ei6'31.)7.1




&Aro

-

6

-1-417

z

. 2-




STUART H. PER Y,

SECOND VICEPRESIDENT.

-FIRST VICE-PRESIDENT.

MELVILLE F. STONE, couttsFLon.
FREDERICK ROY MARTIN, GENERAL mASAGER.

,

AmANTELEGRAmANDT.,

BROOKLYN EAGLE.

WARHINGTuh, STAR,
PP.ESIDENT.

664

1,3,026

HERBERT F. GUNNISON

FRANK B. NOYES,

J. R. YOUATT, TREASURER,

KENT COOPER, AssT. GENERAL MANAGER.
JACKSON S. ELLIOTT. Ass, GENERAL MANAGER

MILTON GARGES, CHIEF OF TRAFFIC DEPORTMENT

DIRECTORS.
VICTOR F. LAWSON, CutcAoo DAILY NEwS.
W. L. McLEAN, PHILADELPHIA BULLETIN.
FRANK B. NOYES, WAsHINGToN STAR.

o

ADOLPH S. 00-IS, NEW YoKK TtmEs.

e'cr t";

i?

CLARK HOWELL, ATLANTA CONSNTuTtoN.

S. McCLATCHY, SACRAMENTO BEE.
CHAP.LES HOPKINS CLARK, HARTFORD COURANT.

CHARLES A. ROOK, PirrsouRo DisPAycl.t.
H. COWLES, SPOKANE SPOKESAIAN-REVtEW.

PRESIDENT'S OFFICE.

ELBERT H. BAKER, CLEvELAND PLAIN DEALER.
JOHN R. RATHOM, PROVIDENCE JOURNAL.
FRANK P. MAcLENNAN, TOPEKA STATE-JOURNAL.
H. V. JONES, MINNEAPOLIS JOURNAL.
D. MOORE, NEW ORLEANS TIMES-PICAYUNE.
LANSING RAY, ST. Louts GtOSE-DEMOCRAY

STAR BUILDING, WASHINGTON, D. C.

July 18, 1922,

Honorable Benjamin Strong,

Pederial Reserve Bank,
New York, N.Y.

My deer Governor Strong:

I have intended writing you before this
regarding our proposed itinerary and your v,ry kind
'

letters.
In general, our trip will be to the

suggestion that you would give me Some

following points:
4,65,ffti




U.

.,.- ,, -

0 ,1";"t'''' I
.,..,ri ' ,

c

Japan (pin cipal cities)

China (2eki n, Shanghai, Horrf-Eono)
,,
Saigon,
9.1ev
Singapore ,
Java

ed.e

Rangoon

Calcutta
Bemires
Belhi

,IV A\ AAA.

A

ttt,y, r

Agra

Bombay

Bj,4,

co,y,

c

.c. ,'(00" .::

n-C11:'''., ,-.
,...,

:

Ceylon

It is.possible, of course, that I may
have to onit some of the points particularly Saigon
and Bankok. In India, also, it is l2ly that 1:Rtw,
will visit other point, (Madras, Bangalore, etc.)

.

'

,'

HonoT'able Benjamin Strong-2
!oz)




While I have seine acquaintance

with Lora Roaai, I woula be very glad inacea
to have you write him as you suggcot.

I will erect to reach Inaia about
the

idale of J8nun.x7.

I very much al:Tree:Late your trouble

in writillg uo EJO fully.
With covaial regarao,
Very sJ.ncorely,
Frank B. Noyes

flfron

.144t-T

6

July

lc',

1022.

My dear Mr. Noyes:

Here are the notes of introduction, and in addition I have written
to all of the persons to whom they are addressed, advising of your prospective
trip so that I believe they gill all be on the lookout for you.
a word about the letters. Governor Inouye and hr. Fukai Pre
officers of the Bank of Japan, Tokyo. Governor Inouye is one of tho ablest
Japanese that I know. He is especially vall informed and speaks English
quite well, as does 'r..Fukai. They are both warm ooreonal friends of mine.
I think !c'tr. Inouye is regarded as onecf the ablest'ron in Japan, especially in
finance and economics.
He belongs to the younger, rore progressive and
enlightened party, and some day I anticipate will be Finance 7:dnister.
No

Nishi is the guide that I spoke to you about. If you decide to
engage him, I sug:ost writing well in advance as he is usually pretty busy
Vat the time you are likely to be in Japan. I an sending you not only tho
note of introduction, but the letter cf advice as Tell, so that you ray send
the letter of advice yourself only in ,case you decide to engage him.
Viscount Shibusava is one of the leading business men of Japan.
He is sometiri.es called the J. P. :.'organ
of Japan. Hs is a man possibly 8C or 87 years old, speaks no English, but
has an excellent interpreter. Ha is very rich, and nov spends all of his
tico in philanthropic :;ork. He is a charming and enlightened man.
You probably know him by reputation.

.

Baron Uegata is a member of the House of Pears, and ham soxe

influence in business affairs, although he is

no retired from tusineso.
Both ho and Viscount Shibusawa have visited this country a number of tires.

The lattet in the early days was private secretary to Prince Ito.

Colonel Cheney, I think you and !,1rs. Noyes probably know. He
now flilitary Attache of the Americ,Fm Legation in Peking, and just before leaving
uarried Louise Delano of 7ashingten.

Sir Lawrence i. Guillemord is Governor General of The Straits Settle

rents srd High Commissioner of The Federated Malay States. He and Lady
Cuillemard had only been at that post a few months yben I as in Singapore.
They are charming people and have a. beautiful house in Singapore .':here you

probably will find them at the time of your visit.




Mr. Frank B. Noyes

July 19, 1922.

MesEre. 7eilinga and Van den Berg are the head officers of De
°11,IS'avesehe Bank

at leltevredee,thich as you knot is the business part of Batavia.

Yr. Van den Berg has a charming tife whom I am sure Mrs. Noyee will be delighted
to meet, and you :7ill find them most hospitable and delightful people. Unfortunately, the Governor General, Count Van Limburg Stirum, who was in charge
when I

;as in Java, has left, his term of office having expired, and I do not

personally knot the present Governor General, but 1 al sure that Mr. Van den Berg
will be deliehted to make you aceuainted tith him.
Lord Ronaldshay Is Governor General of Bengal. Se visited him at
Darjeeling. He is a man of great energy and ability, and l think is regarded
as one of the ablest men in the Indian Government.
Lord Reading you already know.

Mr. Halley is the Finance Member of the Viceroy's Council.
le
and Yrs. Hailey'at Simla, es the Indian Government was in the
Mountains when ae were there; but they will be in Delhi during your visit.
I an sure that you will be delighted to meet them.
They are most hospitable

visited

and entertaining, and 1r. Bailey you aill find as tell posted as any one in

India upon conditions and especially upon the Indian Government.

spent his life in the pork.

He has

Sir GeorgeIloyd is Governor General of Bombay, and is one of the
youngest men in high office in India. He also is a man of most unueuel
energy, and although he had been in office but alshort time Ihen I was there,
he was making himself strongly felt in the more progressive development work
of that Presidency.

It has seamed to inc better to furnish you with this rather Ellen number
of letters to men of more importance, than to give you a large number of letters
which might prove to be a burden, as courtesy requires me to advice their
having been given cell in edvance.

I an sure it is not necessary for ee to Eugeest that in the cast these

gentlemen in the Indian Governmeat find it necessary to wake engasenents in

advance, and I think you rill find it a convenience to yourself end to them to
send the letters by mail or messenger on your arrival, or if possible in advance
of your arrival, so thet they may e-Toct you and plan accordingly. It may be
just as well also to warn you that net only the Viceroy but the Governors of
the States are in the habit of keeping open house. I think if these letters
are seat in advance it is quite likely - unison other engagements interfere that you and
Noyes will be asked to visit at the Government house in each
instance. Thet proved be te the case when I -ees there, although .ee were not
always able to accept the invitations.

la found it particularly interesting tin stay with the Viceroy, and
I mey eay ee had the same experience in Jlva ehere we visited the Governoi
General at the Palace at Deitenzorg.




Mr. Frank B. Noyes

July 19 .1922.

Messrs. 7eilinga and Van den Berg are the head officers of De
411-1).avasche Bank at Seltevreden,which as you knoa is the business part of Batavia.
Yr. Van den Berg has a charming wife whom I am sure Mrs. Noyes nill be delighted

to meet, end you viii find thsmi most hospitable and delightful 1:eople.

Un-

fortunately, the Governor General, Count Van Limburg Stirum, who was in charge

when I vas in Java, has left, his term of office having expired, and I do not
personally know the present Governor General, but I al sure that !-:r. Van den Berg
will be delighted to make you acquainted with him.

Lord Renaldshay is Governor General of Bengal. No visited him at
Darjeeling. He is a man of great energy and ability, and 1 think is regarded
as one of the ablest men in the Indian Government.
Lord Reading you already know.

Mr. Bailey is the Finance Member of the Viceroy's Council.

le

visited ?,1r. and Yrs. Hailey'at Simla, as the Indian Government was in the

Veuntains when 5e were there; but they will be in Delhi during your visit.
They are most hospitable
I an sure that you will be delighted to meet them.
r. Bailey you aill find ar. 4011 posted as any one in
and entertaining, and
India upon conditions and especially upon the Indian Government. He has

spent his life in the pork.

P
Sir GeorgeLloyd is Governor General of Bombay, and is one of the
youngest men in high office in India. He also is a man of most unusual
energy, and although he had been in office but acchort time then I was there,
he ,as making himself strongly felt in the more progressive development york
of that Presidency.

It has seemed to me better to furnish you with this rather snail number
of letters to men of more importance, than to give you a large number of letters
which might prove to be a burden, as courtesy requires me to advise their
having been given veil in sdvance.

an cure it is not necessary for

an

to sugc-est that in the East these

gentlemen in the -Indian Government find it necessary to make engasenents in

advance, and I think you rill find it a convenience to yourself and to them to
send the letters by mail or messenger on your arrival, or if poEsible in advance
of your arrival, so tht they may expect you and plan accordingly. It may be
just as Yell also to tarn you that not only the Viceroy but the Governors of
the States are in the habit of keeping open house. I think if these letters
are seat in advance it is quite likely - unless other engagements interfere that you and ro. Noyes 411 he asked to visit at the Government house in each
instance. That proved to te the case when I as there, although we were not
always able to accept the invitations.

Se found it particularly interesting to stay vith the Viceroy, and
I may say ye had the same experience in JAva
General at the Palace at Buitowlorg.




ye visited the Govarnoi

July 39, 19.
These visits give one an exceptional op:ortunity to learn some0Ang of what is going on in the East, and no part of my vicit vas more
enjoyable than these stays at the various Government houses.
I an looking up the name and address of a Danish friend at Bangkok,

but am unable to send the letter with this as I seem to have mislaid his
address.
ground.

llon't you be good enough to lot me know if this covers the
Sincerely yours,

Frank B.

yes,

c/6 The Associated Press,
Star Building,
lashington, D. C.
ES.IVM

cries.
*

p I.,

Since this letter was written, I have discovered that Lord P3onaldshay's

term of office has exoired and that he has been succeeded by Rt. Hon. the Earl
of Lytton, Governor General of Bengal, whom I do not know, and so I have
omitted a letter to the Governor General of Bengal.




B. S.







SRoRTSToRms

Do UBLY:DAY, PAGE

Co.

TrIE

COUNTRY LIFE

FRONTIER

PEviEw

c7IICATIORAL
HE COUNTRY

GARDEN & HOME BUILDER

LIFE PRE SS

RADIO Etwara,CAST

GARDEN CITY,NY

M

li

24, 1927.
Iarch

Dear sir:

I have learned from Senator Glass that
you have read his material entitled "An Adventure ih Constructive Finance', and have
expressed your approval of it to him.
I
wondered if you would be so kind as to let
us have a comment that we might quote in
connection with our efforts to se3ure an
adequate distribution of this fine contribution to the subject.
Trusting this may be agreeable to
you, I am
Sincerely yours,
DOU3IEDAY PAG: 1 00.

7Aitoria1 Department.

3en3Attift Strong, Esq.,
Gov. N. Y. Federal
33 Liberty Stre,A,
New York City.

eserve

Bank,

LBS:Y3

4:54;

Hotel 3righton,
Atlantic City, N. J.,
April 12, 1927.
My dear Sir:
The delay in answering your note of March 24 could not
be avoided on account of my absence and illness.

You ask me for a comment upon Senator Glass's book

entitled, "An Adventure in Constructive Finance." Possibly the
most pertinent comment is to express the satisfaction which all

of Senator Glass's friends feel that he has at lust given
intimate and authoritative

account

us the

of the legislative history of

this masterpiece of legislation.
No one after reading this book, even though they do not

know the author

intimately as I do, can doubt that it was his

energy and devotion to the task which resulted
tion of the Act and its passage by Congress.

in the construc-

hope the circulation of the book is as successful as

its merit justifies.
Sincerely yours,

Mr. 3eecher Stowe,

-ditorial Department,

Doubleday, l'age
Co.,
Garden City, New York.







SRORT STORIEti DO

REvrs-w

U ISLE DAY, PAC- E & CO. CoumTRV LI r
GARDEN 8c HOME

Bumnint

E

FRONTIER

RADIO BROADCAST

rEnuumoNAL

GARDEN CITY,NY

teHE COUNTRY LIFE PRESS

April 13

1927

Dear Er. Strong:

I wish to thankprou most sincerely for

sending us an endor9rement of Senator Glass'
book. This fine wird from you should help

us to secAre circpation for the book, which,

I am sorry to s, is proving surprisingly
difficult. I pnose the fact of the matter
is that the n ple have been so bored by

economic and inancial books that when a man
comes along ho can write in a human and

entertaini
of his -or

way he has to suffer for the sins

ecessors.

Sincerely yours,

Bezjjaroin Strong, Esq.,
Ho el Brighton,
Atflantic City, N.J.

LBS/EAD




Form 1220

IS EXPERTID

CLASS OF SERVICE SYMBOL

by the seader

Telegram

of this message.

Day Letter

or telephone it
to

Blue

Night Message

Please give it to
the messenger

Nite

NL
If none of these three symbols
Night Letter

appears after the check number of

words) this is a telegram. Other-

WESTERN UNION

NEWCOMB CARLTON. PRESIDENT

GEORGE W. E. ATKINS, FIRST VICE-PRESIDENT

wise its character is indicated by the

symbol appearing after the check.

2477

F390CC 1R 85 NL 5 EXTRA
NEWYORK NY OCT 16 1923

BENJAMIN STRONG
15 NASSAU ST NEwYURK NY
FIVE YEARS SINCE SIGNING OF ARMISTICE WILL HAVE ELAPSED NOVEMBER

ELEVEN THE WORLD SEEKS FOR PUBLICATIUN THAT DAY SYMPOSIUM OF
OPINIONS OF LEADERS OF THOUGHT THROUGHOUT EARTH ON DEVELOPMENTS

THESE YEARS AND THEIR PROMISE OF GOOD OR LLL FOR FUTURE ARE THE
(7-

NAT IONS IN CLOSER ACCORD ARE THEY COMING CLOSER WHATS THEIR GREATEST

NEED HOW MAY IT BEST B

SECURED WILL YOU BE GOOD ENOUGH TO TELEGRAPH

COLLECT ANSWERS TO THESE QUESTIONS BECAUSE OF SPACE LIMITATIONS

BREVITY WILL BE APPRECIATED
NEWYO RK WORLD

HERBERT BAYARD SWOPE
EXECUTIVE EDITOR
1204A 17

lirdin.&44(dfct

arAaJ,,

'77t44,11 GiAhri4u; eNire-f2r
4,0-1-70

ev Fr)

ge-a. C0-0-0

otAtia;,,

4,2,4A



at;

IL.645,21:-14dx7,-----or

72_4-

1.4F7 i

U-42 1.

/4A'

frri

411A,L_

0-4/111-4-1-4-m-''

el &rut

e7a6_

3 pet,;/,

CA

eu

6/0K




POSTAL TELEGRAPH - COMMERCIAL CABLES
CLARENCE H. MACKAY, PRESIDENT

TELEGRAM

RECEIVED AT

This is a fast Telegram unless otherwise Unheated by signal after the number of word Blue" (Day Letter)"N. L." (Night Letter) or Nile" (Night Telegram)
STANDARD TIME INDICATED ON THIS MESSAGE

.53 WD

OX 11 FM

83 NL COUNT 4 QUESTION MARKS 4 EXTRA AN SIG

WD NEW YORK OCT 30
BENJAMIN STRONG
11115 NASSAU ST

1923

Ili :1

NEWYORK NY

MANY LEADERS OF THOUGHT IN AMERICA AND ABROAD HAVE EXPRESSED
OPINIONS ON WORLD DEVELOPMENTS DURING THE FIVE YEARS SINCE PEACE
WAS DECLARED FOR PUBLICATION IN THE WORLD'S SYMPOSIUM NOVEMBER
ELEVEN, MAY WE NOT AGAIN ASK YOU TO TELEGRAPH COLLECT ANSWERS TO
FOLLOWING QUESTIONS WITH COMMENT STOP ARE THE NATIONS IN CLOSER
ACCORD ? ARE THEY COMING CLOSER ? WHATS THEIR GREATEST NEED ? HOW
MAY IT BEST BE SECURED ? BECAUSE OF THE MANY REPLIES BREVITY WILL
BE APPRECIATED,

HERBERT BAYARD SWOPE,
EXECUTIVE EDITOR

NEWYORK WORLD

nmn N

17, 2/1-vto
FIFTEEN NASSAU STREET
NEW Yo
October 29, 1923

Editor, New York World,
Pulitzer Building,
New York City.
Dear Sir:

It is my sincere belief that conditions economic and industrial in Europe and in other countries since the close of the War
have been in general persistently exaggerated or misrepresented and
have been, broadly speaking, returning much more nearly to their
normal paths than anyone would imagine from the overdrawn and sometimes hysterical accounts which have been printed regarding them.
Even countries like Germany, Poland, Austria and others, which have
been very deeply disturbed by indulgence in wholesale inflation (I
can give it no other term) have suffered far less than some of our
economic theorists would have us believe.
The dislocations due to the arbitrary chopping up of natural
economic units, to satisfy the vanities of "national" or "racial" egos
have probably affected European life more seriously than anything else,
but even here the adjustment has been steady and considerable.
The rapidity with which a country may recover from the orgies
of inflation seem vividly illustrated in the case of Austria, which, in
the face of enormous difficulties, appears to be making steady and solid
I have sometimes wondered if the endless embroglios which
progress.
seem the stock in trade of European politics might not be a natural
means of effervescence,or sublimation of some sort, of popular and even
domestic irritations and animosities, and relatively harmless save where

they coalesce with profound economic =Mots to precipitate such a
conflagration as the World Via
believe there is scarce any country
in , rope
a
as not shown fairly steady industrial improvement since
'"

the Armistice, and that if we could lift the smoke screen engendered by
political controversy we should be quite astonished at the general
tranqui ty of the picture.
It seems to me that it is the consuming
egos f nationalists everywhere that most seriously threatens the peace
of nations, and relatively little else.
Very truly yours,

47'114-i4:ti

kV:7 73



0/...

;;4114.-7(

/,'

1444

y_

Zip

13..Llortil

irecrWor/r/

December 28, 1925.
HERBERT BAYARD SWOPE

EXECUTIVE EDITOR




ACKNOWLEDGED
DEC ?01925

Dear Governor:-

B.S.
Because I have regard for your
judgment, I am anxious to get from you an
expression of opinion as to the workability
and general value of the enclosed suggestion.
It was written by B. M. Baruch after a discussion
with myself and some of my associates on the paper,
as to the needs of the present financial and economic
As it deals so largely with subjects
situation.
on which you can speak with authority, from both
an academic and an empiric standpoint, I am eager
to learn the reaction the memorandum produces on
I ask for my own guidance. Neither the
you.
memorandum nor your reply is intended for publicaI told Baruch I was going to send it to you,
tion.
and he agreed that your judgment would be valuable
from the standpoint of your impartiality and knowledge.
I hope you have a very Happy New Year.
With sincere regard
Faithfully,

Honorable Benjamin Strong,
Federal Reserve Bank,New York City.
v3,0

When you send your reply please be good enough
to return the memorandum.
P.S.




71F

NeP5z)

, n

6

0

.44

170RA7DUIT

The United States is making settlements with our
Allied debtors on the basis of their ability to pay.

I myself

am one of those who felt that we never should have asked the
nations to pay all the indebtedness incurred in the prosecution
of the war;

that that part of the indebtedness incurred for

military purposes should have been regarded as a contribution
to the common cause.

It is possible to find this out from the

records of the Treasury Department, the War Industries Board,
and the Allied nations.

The net result of this would have been

very little different from the result of what is being done now;

only we have lost the opportunity of doing

fine thing finely.

Our policy having been decided otherwise, I believe

we should accept the determination of President Coolidge and
Secretary Yellon because they have certainly done what they, the
responsible heads, have deemed wise and proper in the circumstances.

"le have made these adjustments, or compromises, or less-

ening Of the debts--in fact, a cancellation of a large part of
the principal--for the purpose of restoring trade and commerce

in the world.

Our Allied debtors have come to us and said that

their combined ability to pay amounts (depending upon what the
2rench settlement finally is) to between .;';230,000,000 and c250,000-







-2-

000 a year.

The same nations tell us, in discussing the

German reparation, that Germany alone can pay ,625,000,000
a year, plus a certain amount measured by an index of pros-.
perity.

To the ordinary man the measure or manner of

arriving at these two amounts, the Allies' ability to

pas

and Germany's ability to pay, seems to be quite different.
One sat of figures must be "wrong, although they are made
by the se4pe people.

Evidently a different yardstick is

being used, because sentiment has been debarred from the
Only cold facts are supposed to be taken

whole transaction.
into consideration.

I think, with trade and industry revived, that

even the present debts would become comparatively and astonishingly small in proportion to the burden they are generally
supposed to be.

But of that avail will be the cancellation

of a Dart of our debt, if our acceptance of inter-Allied
indebtedness is based on facts, unless the whole economic

circle is closed by placing the German reparation in a position there it cannot be

merce and trade?

a disturbing cause to American com-

I say "cancellation of a part of our debt"

3

because an examination of the present cash value of the arrangements made with the various Governments will show, at 4 1/4;L interest, the following results:

Estimated Present Values of Debts Due Under Funding Arrangements
Expressed as Percentages of the Principal
mounts due December 16. 1925.

Country

Percentage
Relation of
Present Values
at 4-A/4;, to

Principal

Percentage
Percentage
Relation of
Relation of
Present Values Present Values
at 6,,Z to
at 7 1/2% to
Principal
Principal

Belgium

54.1

38.1

Czechoslovakia

80.6

56.1

Great Britain

83.7

62.2

Italy

26.2

16.4

Poland

83.6

62.1

France (offer
made by

45.

11.6

French)

France (offer
made by
America)

70.

If going rates of interest are used, they would have a
much smaller value.

So a large percentage has been cancelled

however Are may dress up the phraseology of the transaction.

To make possible the results which we desire to achieve
by reestablishing the economic balance through an adjustment of. the




-ennalls adt lo

is

*s.sv eWt cfiv ebiza aI..7rem

adl

z4nemebnzTvi

leZnU anti z;tdetl lo BenisV tnoaol betsmileL
erit lo sestaety!el as bes20-iqx::

uel
olBataecale

lo nolts105:
eals.E.BVIneaut:i

ot

ts
Isqloallq
1

.Z1 ledmegs(1. soh elpLig

anstaso-le

to noltulefi
aeLlsV Idedolq

°I 3 ta

evEstneoqe':

lO noftsle

vslanoU

aanIsV

ot '4\11s
Isqlon11

mvinleE
s1Jisvolsodcez0
IseTD

8.11
bnsloci

7Mo) ennef6.
a)sca

(doileA

len()) eomslci
md ebm
(soPlemA

B evsd bivou, ILeri/ ,bey em ;teolelni ao
belloonso need asff e8stsreoleci Kimal s

ngtol /1
emlsv .15)11sme aura

.abitosansql adt lo mnolooesIdg ad/ qv aeettb vso tym levowod

avaios ot olfaeb w dc,idw atIvael edl eld.T.eacq egsm oT
afl 'ao InemteuLL2 as dzoondl eonslsd k;iM011009 adt nnitrialideteeo-r .md




4

debts, there should be an adjustment of the German reparation

somewhat on the mire scale as the Allies' debts were adjusted if

the yardstick determining the Allies' ability to pay i s correct.
The greatest difficulty international trade is meeting
is the fluctuation in the media of exchange.

England has just

gone on the gold basis. The difficulties of the French are

apparent to all; and so on through the list.
So this plan is suggested.: that in offier to settle
the whole problem -- not a S
--t,Lpt/

Z.4

B.

palliative, but as a curative -- (1)

-Llt,R

the German reparation4 should b fixed, at a determinate sum,

arrived at on the oasis of the settlement of the Allied debts.
This should. no t be done by the United States Government; it is a
transaction for the governments themselves involved.. (2) The

French must balance their budget and determine at what price they

will stabilize the franc in gold.

(3) The German reparation hav-

ing been definitely fixed. by the same yardstick that has determined the Allied indebtedness, there should be an international

issue, in gold. dollars, pounds, francs at the determined stabilized
rate, marks, lira, pesetas, all forms of exchange of a ;32,000,0-)0,_
000 series A German reparation loan to be secured by sufficient
railroad and..industrial bonds to make the loan good beyond peradventure. Under the Dawes Plan, Germany has created such

mortgages, which rank ahead of those which are now being issued in
increasing quantities by American bankers.

The balance of the

reparation bonds WO uld De held. under an arrangement among the




1 del+

bI

-

ei

LtflOF%

Ms a i

-




191-

9IL

±Ja

s 7c

Joc
d

)*Terf3

els

a OfialI

.;zioz.rfoxe izo

trrlol I.

,

1c1

r

ra3cd L..
od
E

91.a.

a

.

Of

various countries interested and to whom the securities would be
coming.

If the loans issued by American bankers are good, this

loan would be much better;

if this loan should not be good, the

loans handled by American bankers are not good.

From the proceeds of this loan there would be allotted to
the various countries their percentage as they may determine or as
has been determined under the bpa Agreement.

Under this France would

get something over a billion dollars, and the balance would be divided
among England and the other countries.

This would immeuiately and

definitely stabilize the pound and the franc.

The French havin

balanced their budget and determined upon a gold value for the franc,
there would be no doubt in the mind of any one, including the French
investors who are now so panic-stricken, that with a credit of over a
billion dollars behind them, the franc would be stabilized.

Gold money

would come out of hiding and international trade would be stimulated because here would be a final determination of three things;
Allied debts,

(2) the German reparation,

(1) the

(3) the stabilization of

the various media of exchange.

This would be a great economic step to provide for the continuance of peaceful pursuits, which has its political parallel in the
Locarno Jompaot.




-4
,

od biwow aaiJilLn0

Vr
;ay

4A,,,ons belaele"
400-

aidJ ,boo s 014 alagntd,LlselasmA

teu,3ai anaul 9di 1:

963 ,booa ad :%11 Lluoria naol alA3 21
.boo

amoo

;10:119d noum,sd Lluow nAol

Jon ola 3119inad asoilemA 14d 1.91bnad

O 3 LeJJoila od biuow elehJ' 11401 aid,/
as lo onimle3on 145m conJ i

OluowosPiaif1J aebred

I() al-An:4.01g edJ

8Aa.111.4016c1 7isd/

eiiJLwo

awoilav

a46 90J 19Lnu bentmle/9b used aad

bobivib 96 biLow eon:Iad onJ Una ,a/Bliob Loillid a leyo anidJsmoa ioa
faaa

oJai.Lemmi biuow lidT

aniyad rionotil

.onall 94/ bni

t3n3T1 ons lol aulay Oloa
od/

.aell/nuon TE,d10 0L1.1 LITZ bukui nomn

rso

ci3 ezilidaJa

bsoulad

noau beiliml93ob Lula seabud

..,71a 10 bnim od4 Li Jduob or ad Lluow 919d/

law) lu liboun3 dJiw IadJ tno;ininin134 03 W0ii :314 CifiW 310.1297111
0110M Lick

.bomilida.ta 90 billow 0171311 edJ ,m9AJ bnidod

1)0j81;.,MiJ2 9d 1,:uow oUalJ 1anoi33L1e3.41

00 (1) ;?.aLidisirf lo noi/aLimIo/eb
10 donaniiida/a 9dS

L.LLiii to

0=0 ,LiWOW

ed biwow alsd eavan

noiJ.epclo7 narwra ea4. (4)

,aldal, ielliA
,

..98naanxe lo albem WOilAV 911/

-non mai lol sbiyolq o/ cieJe oLmozoce Jaela 4 00 iamow aidT
9ii

ut lellalaq laniJiio4 aJi azd Anidw paJivalug lulanzeq to eonaunii




unlsood

171:14"1

December 50, 1925.
My eear Swope;

km replying et once end possibly rather hestily to your note of the
twenty-eighth, as I em obliged to go oet of town today end there would be considerable delay.
You will, of couree, anderetend what I am writing to be purely personal
views and sent to you quite privetely. This is e subject on which I have never
Wide any etetement for quotation.

It eeeme to me the debts of foreign governments to our government must
be considered in three specte: (1) Morel, (2) Political, end (3) Economic.

As to the morel questions involved, the debts were honestly incurred with
every expectation that they would be considered as debts and be repaid. But the
developments subsequent to our becoming e belligerent, that is, the prolongation
of the war and the immense destruction which it brought and the difficulty which we
encountered in rendering prompt and effective aid in t military way, have elweys
led me to believe that upon strictly moral grounds there Was justification for at
least a generous policy in eettling the debts which, on the one hand, would preserve

the principle of the sanctity of these international debts, but on the other hand

would recognize some moral obligation to be lenient to a debtor who is in great

difficulty.

This point of view; in regard to the debts, is ilIuatrated by the feet

that the allied nations of Europe who were engeged against Germany are all of them
recognizing their domestic debts, and not attempting by one or another method to
avoid payment or extinguish them, and consequently &Te laboring under tremendous
burdens of taxation; whereas the enemy countries wiped out their debts by inflation

'

and have relieved themselves of e large pert of the debt burdens, ao far as the
government is concerned.
le now appear to be in the position of adding fresh
burdens to some of our allies, at the eeme time that we have made e contribution privetely, to be sure - but nevertheless e real contribution to enable Uermeny to
work out her debt to the allied governments. Our efforts, unfortunately, seem to

be directed more energetically towards making our own partners in the war pay what
they owe, rather than to make the defeated enemy pay, end that feature of the present

situation I have never liked.

The second aspect of the question - the political one - is the most difficult.
Between do end 70 percent. of the people living in this country are of recent foreign
origin. They or their parents have come here to escape all sorts of things:: which
troubled them in other countries, such as compulsory military service, heavy taxation,
one or another form of what they regarded as rereecution - and they considered this
a free country wherein by labor and good wages they could enjoy prosperity and comfort.
Instinctively they were freeing themselves from a political system in Europe which
they dictrueted. They learned that we taught the principle of not interfering with




i2

Mr. Herbert B. hope

12.30.25

Europeen effeirs and they liked it. I think they appreciated that the foreign
policy of thie country 5t8 deeigned to keep U8 out of thia very wer. It was the commonest eort of doctrine taught in schools 30 or 40 years. ego.
Notwithstanding this; fundamental principle of our political life, iwe were
drawn into the war; we abandoned our isolation; we aent 2 million people to Europe,
aria spent $35 billion. When peace Vitti mede, I think the people of the oauntry felt

that et greet eacrifice of our independence, we had made a contribution to e great
cauee, but that now ee were entitled to return to our position of independence, Isolation, comfort and proaperity; that those who owed us money should pay. I think moet
people west of the Alleghenies regerded our war enfort as eomething a little extraordinary, ad that IL involved gleat eecrificee which we were neither politically nor
morally committed to make.
It is therefore ealey to explain the feelinn in the west
that our debtors should pay 1118 ehat they owe.
nnd politically, I have no doubt that
these settlements are necessary even though they seam difficult, and that once made,
we may look forward at some time in the future to e reedjustment of the whole account
when the political atmosphere is more favorable to doing so. It is benter to have
them eettled on some basis then to have them remain uneettled and have etttle conditions
indefinitely deferred. If.they have to be resettled, let us later face that question
courageouely end take the matter up again.
Pa to the economic conditions involved in the debt settlements, 1 consider
Germany he becoee obligated to pay 025 million a yeer in .
standard year, teat ie 1P28, and to transfer co much of that to her creditors through
the transfer organization as is capable of being transferred without breeking down the
German economy.
If the eccumuletion of untreneferroble runds reaches 5 billion marks,
then psyments,are to be suspended until transfers cen he effected. On the other hand,
the debts oting to our governsent by the allied nations, when funcea, will probably
Wens mane by our private
involve payments of 250 to 300 million dollars a. year.
citieene to foreign noverrmente, largely for reconstruction purposes since the Armietice,
new or ehortly *ill require payments annually approaching $250 million, and may even
reach $500 million or more ithin the course of a. year or two. no that some years
hence, *ben the maximum payments on the allied debts to our goverement are reached, the
nmount eLicn ae erc to collect from the rest of the eorld will just about equal what
'aeimenn Is obligated to pay, then
be can pay, under the Paves Plan.
them en-out as follows:

But there is this vest eifference between the two sets of obligations Germany will not pay if transfers cannot be eftected. I eometimes doubt whether for
e long period Germany can be capable of paying more then, say 400 million a. year, or
300 million a year at the outside, and no default sill occur if tranenere in excess,
of that aunt ceenot be effected. The obligetions incorren by the foreign novernments
end borrowers to our government and to our citizens, nowever, are axed obligations.
No method is provided for their reduction or suspension in case Germanyte payments are
not equal to meeting them. These pnymente doubtless must be made in pert by a continuance of our policy of lending abroad. If developments in our finance mete it
imposeible for us to continue that policy, the test of the world's, capacity to continue
to pay us will again occur. No one chn say whet the ooneequencee will be. The world
has had no experience in making payments of this magnitude. Tte greet war debts of
the European nations, with the exception of the French indemnity to Germany, have been
doneatic debts, and even those incurred by the Napoleonic wars teve not been repaid as
yet. The payment which Franee eade to Germany is atilt indirectly forming part of the
domestic debt of France, and the payment which France actually did make wss largely
These payments must be made not out or the grows proceeds of the
made by borrowings.



#3

Mr. Herbert B. Jenne

12.50.25

sale of goode, but out of net proceede or profits. They are a charge on the profit&
of bunineee, and not on the total selee, and I should imagine that eonetime within

five or ten years of the present dete, a situation ie likely to eriee where the
eubject will require review, not tea the result of any particular agitation, but ee

the reeult of some economic pressure which will force a review. Thie opinion ie,
of course, largely epeculetive and etAa be based neither upon calculation nor experience.
The nneerlying economic problem, huwever, is much more imnortant than tne
mere payment of these debte. A condition of contentment in the woric, which meens

seciel titre. noliticel etebility, can only be eetebliehed and eainteined if etenderne of
living ere on a supportable beeis and are improved over the present basis in rainy pErts
of the world. The enormous:sly heavy t&A66 now being paid in Europe are bound to
effect etendarde of living. If they ere continued at a low level, the world's trade
will be effected. There will be recurrent periods of unemployment ad discontent.
I would rather eee moderation in debt settlement:en full employnent, noon. bueineee and
contentment, than a stern policy of ,:lebt collection with diecontent, idienene and
enhappinees. In other. worde, it would be better for, sty, en Americon fermer to eave
0.00 more income and pay n5 or n10 a year more taxes, than it would be to have hie
tees reduced by collecting theee debts urn; then be unable. to merke hie surplus crops
ebroad.

The above reflections are not directly ederreeeed to Mr. Beruchte memorandum
which eeearti to me cane for coneent beyond the ebove on only one point, nemely, bis

scheme for e loen of 2 billion dollars. In the present situation, l thine that would
be a mistake. The French doaestic debt is 500 billion francs. The French foreign
eebt cannot be stated beceuse it has not yet been funded. Cell it 100 billion revues
more or less. If Germany ehould raise E loan of 2 billion dollars by the plan propoeen, France would get 1 billion dollars eey eoughly, 25 or 60 billion 1're:rice. It
would effect a reduction of SO amll E percentage, thet the French Jobt problem rould not
be settled beyond at postponement of the day of reckoning in France wnen their whole
debt problen, domeetic eno noreign, must be deelt with. On tie other hand, an enouity
fro w Germeny of 100 or 150 million dollars a year, strikeo me es affording greeter relief
to rrnuce, keading an aenuetmant of croneetic finance, than eould a round--cum pnyment.

In a general nay, it strikes ne that the time is not yet ripe for auch e proposal. If
tne trench finances could be reorganized, ad teen e enallar loen of this nenarel
cherecter be erreened a. na aid to a echene for the etabilizatioe of the franc, eith

continuance of ennuitiee from Germany at poeeibly a lower rote than that proposed in
the Dewee Plan, i eeeeld toinx the outlook for Prance vould be Letter than it would be

If such s capital operation is proposed.

You kriwv there are bOAC eituetione ehien can be cured by sone form of normal

treetnene eithout e crisis, and othereeehich cannot be cered or dealt with except ns
the reedit of nujor crieie. It may be thet Frunce would be better off if the crisis
arose proaptln teen if it is indefinitely postponed, as night be the case under .Jome
such plan as Mr. Baruch proposed.

Novi, .the4e are very perplexity and complicated natters on which volumes can
ee eatten, tied whieh eke no more thnn touched. upon in e most epeculative way by ne.
above, but it will give you z, general notion of how it all strikes me, and this I send
for win.t, it is worth. The imeediete danger in thie debt matter is that Conereso will
fail to ratify- the funding agreements new made. Congreee will teats considerable re-

eponeibility if the debt question is generally left open wAth the added poetsibilitiee
or dinorgeeiention reeulting erom that, in preference to settling the matter now hen
the opportunity is here, even though oowe difference of view may exist as eo the per


5,4

'

Mr. Herbert B. 3wope

1E-31.25

tioular terms of one or zother eettlement. 1 have been amazed by the number of
people from all parte oV the country who tell me thet they want to eeo the debts
settled end are not particular 8.8 to bhe terms so long as a settlement is retched.
With beet regarde end wishing you also

very happy New Tear, I em,

Sincerely yours,

11.. Herbert Bayard Swope,
Executive Editor, The 1Porld,
Nvo Tort City.

\/) /

I /I& ST e been oblieed to dictste
just fore leaving,
for liaehington, end will. .:5.k yithi.f. i\r.,
gie ett.
to sign it .17-or me.

Ette.







)41-/.v4r4cL

tr-73OFFICERS

.RINCETON UNIVERS ITV PRESS COUNCIL
JRGE A. ARMOUR
ROBERT BRIDGES
GEORGE W. BURLEIGH
C. WHITNEY DARROW
PARKER D. HANDY
JOHN G. HISSER
CLARENCE B. MITCHELL

CHARLES SCRIBNER, PRESIDENT

M. TAYLOR PYRE
ARCHIBALD D. RUSSELL
ARTHUR H. SCRiBNER
CHARLES SCRIBNER
CHARLES SCRIBNER, JR.
AUGUSTUS TROWBRIDGE
ANDREW F. WEST

M. TAYLOR PYNE, VICE-PRESIDENT
CLARENCE B. MITCHELL, TREASURER
C. WHITNEY DARROW, SECRETARY

PAUL B. TOMLINSON, MANAGER

Up.
.;f

t




JUN 8 1918
JUN1

Princeton, N. J.,
June 17, 1918.

Dear Sir:

Herewith are copy and proof of the article
you so kindly contributed to Mr. E. W. Kemmerer's
book, "A/B.C. of the Federal Reserve."
ismomwereporoweeseiagoono....65......

Trusting you will find it in satisfactory
shape, we are

Yours irery truly,
PRINCETON UNIVERSMY PRESS.

Benjamin Strong,
T/B

Governor of the Federal Reserve Bank of N.Y.
15 Nassau St.,
N. Y. City.

X

OFFICERS

PRINCETON UNIVERSITY PRESS COUNCIL

CHARLES SCRIBNER, PRESIDENT

M. TAYLOR PYRE
ARCHIBALD D. RUSSELL
ARTHUR H. SCRIBNER
C. A,ITNEY DARROW
CHARLES SCRIBNER
PARKER 0. HANDY
CHARLES SCRIBNER, JR.
JOHN G. HIBBEN
CLARENCE B. MITCHELL
AUGUSTUS TROWBRIDGE
ANDREW F. WEST
DAM EATON
GEORGE C. WINTRINGER
ROE A. ARMOUR
VT BRIDGES

M. TAYLOR PYRE, VICE-PRESIDENT
CLARENCE B. MITCHELL, TREASURER
C. WHITNEY DARROW, SECRETARY

--

PAUL G. TOMLINSON, MANAGER

Princeto

New Jersey
October 7, 1318

00

I

Dear Mr. Strong-

We are mailing you by parcel poet two copies
of "The A B C of The Federal

Restrve

System".

One of these

is for your own use, and I understand from Professor

Kemmerer that you

are

desirous of forwarding a copy to the

governor of the Eank of England, and

we are sending the

second copy for this purpose.
Yours very truly,

Manager.

Mr. Benjamin Strong, Jr.,
Federal Resefve Bank of New York,

New York City
T-F







October 14, 1918.

Paul fl. Tomlinson, Esq.,
Manager, Princeton University Press,
Princeton,. fr. J.

elr
On October 7th you wrote to Mr. Strong advising

that you ,:vere forwarding by parcel post two copies of
"The A B C of the Federal Reaerve System.

copies ;lave not been received,

As these

am writing to ask if

they have been mailed, and on what date,
Yours very truly,

Secretary to Yr. Strong.

-.TON UNIVERSITY PRESS COUNCIL

R.

-0.10UR
DES

OFFICERS

M. TAYLOR PYRE
ARCHIBALD D. RUSSELL
ARTHUR H. SCRIBNER

CHARLES SCRIBNER, PRESIDENT
.

PRINCETON

M. TAYLOR PYRE, VICE-PRESIDENT

UNIVERSITY
PRESS

C. WHITNEY DARROW
PARKER D. HANDY
CHARLES SCRIEINBR
JOHN O. HIDDEN
CHARLES SCRIBNER, JR.
CLARENCE B. MITCHELL
AUGUSTUS TROWBRIDGE
DAVID PATON
ANDREW F. WEST
GEORGE C. WINTRINGER

CLARENCE B. MITCHELL, TREASURER
C. WHITNEY DARROW, SECRETARY

PAUL G. TOMLINSON, MANAGER

Princeton, V. J.,

October 17, 1918

Mr. George Beyer,

c/o Mr. Benjamin Strcng,
Federal Reserve Bank,

New York City
Dear Sir-

Replying to yours of t e 14th, we locked up the order
for sending two copies of"A B
to Mr. Strong, and find tha
been shipped.

of the Federal Reserve System"

through some error these had not

We sent them out yesterday however, and trust

that Mr. Strong will receive them promptly.
Yours very truly,

PRINCETON UNIVERSITY PRESS

FC




-TON UNIVERSITY PRESS COUNCIL
TMOUR
GES

C. WHITNEY BARROW
PARKER D. HANDY
JOHN G. HIDDEN
CLARENCE B. MITCHELL
DAVID PATON

OFFICERS

M. TAYLOR PYNE
ARCHIBALD D. RUSSELL
ARTHUR H. SCRIBNER

CHARLES SCRIBNER, PRESIDENT

CHARLES SCRIBNER, JR.
AUGUSTUS TROWBRIDGE
ANDREW F. WEST
GEORGE C. WINTRINGER

PRINCETON

M. TAYLOR PYRE, VICE-PRESIDENT

UNIVERSITY
PRESS

.

CHARLES SCRIBN.

CLARENCE B. MITCHELL, TREASURER
C. WHITNEY DARROW, SECRETARY

PAUL G. TOMLINSON, MANAGER

Princeton, N. J.,

October 17, 1918

Mr. George Beyer,

c/o Mr. Benjamin Strong,
Federal Reserve Bank,

New Ycrk City
Dear Sir-

Replying to yours of t e 14th, we locksd up the order
for sending two copies of"A B
to Mr. Strong, and find tha
been shipped.

of the Federal Reserve System"

through some error these had not

We sent them out yesterday however, and trust

that Mr. Strong will receive them promptly.
Yours very truly,

PRINCETON UNIVERSITY PRESS

FC




Per




Ootchor 18, 1918

Yy de,..r Mr. Tonlinson:

The two copies of "The A B C of the Federal Rnserve
System" were reeeived today for which

thank you.

Xheve

also acknoTledged their receipt to Professor Kemmerer.
Vory truly yours,

Mr. Paul G. Tomlinoon,

Prirretop_Univt::; ?reca,
Princeton, N. 3.

,




.

y

,,

FT,,,_

--7701A,

July 14, 1:325.

Deur Wasson:
ailbAk

til

you vely wuca for your fraak note

.A

juii 10.

am very glhe inueoo to knot, the newspaper reaction on mattOre of

this sort &Lid Iba ourt. the Governor will be also.
0

taat t.G.c,vsihor

dC 1,114,L

u Lurck:.

.

The Pict fs
.thout 0,y COAIWcht

arising, th5t he felt itm...-eht, be poscible to do so still.
kLow

You

Ilat he dilikis exceeeingly private publicity hnd would prefer

to hvole it, but I ,iuite agiee with you, 'and the events show, that
I am going to 1,,0 on your roction to him
hope that you

give it to him ih

perL

hor, a returno.

Sinctry youre,

LUILGiZL.

,:sietant Feaerhl LLeserve
Mr. L. G. fiaLegn,

Ti'

Nzi4 York
Tribune,
20 Vesey Etreet, Ne.; York.




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