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-do ci 2 June 115, 1921. PERSONAL ky dear Mr. Baker: We have only within the last fe,:l weeks been able to conclude the final accounting of the expenses of the various Liberty 1. ans., and determine to what eiteaL, if any, expenditures made by the ormanizatic'n could not be reimburse6 b the Treasuly under existing law, or rules of the Department. We find that the total wucunt of such itame that cannot be reimbursed is Of thi6 sum, the Federal Reserve Bank is able to absorb t2 229.74. 0,535.97. The remainder, 006.23 I have paid personally.' The Liberty Loan Committee passe.1 4 resolution, agreeing personally to assume certain charges, up to a limiteu amount, which as I recall was ,T1,000. if the members of the committee care to pay their respective shares of this sum, the amount of each committeeman's proportion will be ;;'.,77.55. Had these operations been conducLed 8i400 the passage of the Volatead Act, it would rpot have been necessary to as ihs comaitte ticn. Ycurs very truly, George F. Baker, Esq., 2 Pall St., Nev. lurk, N. I. BS: Mk to :Lake any oontribu- , a June 15, 121. My dear Mr. Baker: I thaag you for the relLitthce of93.55 eaolobed in your favor of June 14. Your Georgu 7. B-ker, Tan., 2 441 5treet, NO4 York, GE:Vi N. y. very truly, /9/ccI Address Made by MR. ELIAS A. de LIMA President of the Battery Park National Bank of New York Before the CITY CLUB of ROCHESTER, N. Y. The Federal Reserve Act Its probable effect Sent out with the Compliments of George H. Paine, Philadelphia, Pa. It has properly been said that the Federal Reserve Act is the greatest piece of legislation we have ever had in the country ; and we may well add to that statement, by saying that in its far-reaching effect on our development it will stand only second to the Declaration of Independence. This may seem like a very broad statement, but if that ancient document insured for us Life, Liberty and the pursuit of Happiness, then an act which tends to facilitate the fulfillment of those blessings to our economic being is entitled to rank next to the declaration itself. In our discussion to-day it will be scarcely possible to enter fully into the details of the Act, and we may touch only on the salient points. Before taking it 4, however, it will be best for us to glance for a moment, by way of contrast, at the conditions under which we have been working during the past fifty years. BANK NOTES. The National Bank Act took its final form in 1864, and while it has been popularly known by that name, I wish to call your attention to its official title, which was : "An Act to provide a national currency, secured by a pledge of United States Bonds, and to provide for the circulation and redemption thereof." It was never a Bank Act in the true sense, and while it has been amplified and surrounded by regulations and decisions of the Treasury Department to fit the needs of banking as they developed, it was essentially and confessedly a measure whereby the Bonds of the Nation could be marketed. The Bank notes that resulted from this operation were merely fractional parts of the Nation's credit, and bore no relation whatsoever to the varying needs of the country's business. The present total of these notes is something over seven hundred and fifty millions of dollars, and at that amount it remains with slight variation from one year's end to the other, and with no co-relation to the demand for circulating medium ; so that we have either a plethora or a scarcity. The great drawback, therefore, to this form of note issue was its rigidity. This weakness in our system has bee for many years the main point of criticism, and a great number of suggestions have been made and bills introduced in Congress look- 4 ing toward its cure. While it is a vital defect, it is strange that for many years of the discussion it seemed to be almost the only one for which a remedy was sought, and it is only in very recent years that our economists and bankers have been taking a broader view. RESERVES AND CREDITS. The two other defects of our system have been our scattered reserves and our localized and restricted credit ; these have been just as vital and as disturbing as that of the Note issue. Let us take them up in order. The purpose of a bank's reserve should be what its name implies: a fund on which the bank may draw in case of emergency. But the national bank act stipulates that when a bank's cash has reached its legal minimum it may do no further business which might impair that fund. It is as if the law required a factory to place a fire extinguisher in one of every four rooms, with a sign reading "this is not to be used in case of fire." The reserves of the country are scattered in twenty odd thousand different vaults, and it is of course impossible to concentrate their power on any one point where the conflagration may arise; and worse than that, each separate bank immediately begins to conserve and augment its cash holdings in the fear that it may not be provided when the flames shall have reached it. This is what happened in all of our panics, and we can well remember the situation in 1907. This then has been another element of rigidity. Now as to our credit, and the misconception with which we have consistently dwarfed and localized this one great and important engine of power. Credit may be described as the present worth of a future promise. The worth of any commodity finds expression in the price that the dealers in it are willing to pay ; and so it is with credit. The dealers in credit are the Banks. In order to make this plain, let us consider the main function of a Bank. It is not, as it is popularly conceived, to buy money from one and sell it to another for that is the business of a money changer ; nor is it to buy credit from one and sell it to anotherfor that is the function of a bill broker; but it is to buy money and credit and pay for it always with credit. When you deposit a sum of money with your bank you 5 give up not only the possession of it, but also all your right, title and interest in that particular sum, and you receive in return a credit on the books of the bankmerely a right to demand back an equivalent amountthe bank is not your trustee, but your debtor. And also, when you discount a note with your bank you give up all your right, title and interest in it and receive in return a credit on the books. So that in every case a bank's commodity is its credit, which it is constantly selling. But like any other merchant, a banker cannot deal only on credit, so he finds it necessary to keep on hand a certain amount of cash to meet his demands and this is usually about twenty-five per cent of his obligations. Occasions, however, arise when this fund is not sufficient, and the banker is put to it to replenish his cash; his only resource is his stock in trade the credits he has bought, the bills in his portfolio. But these are not available because there is no provision in our old system for disposing of them, unless he takes them to another bank to obtain a loan, and this is not an operation which is looked upon with favor. It is as absurd a situation as if a merchant were unable to take his goods out in the market for ready sale when it became necessary to do so out of the usual course of trade. There has been no open discount market for the Bank's holdings of commercial paper. This is a point which we shall take up later in this discussion, and I mention it now only to indicate the restrictions which have grown up about our credit. We see, therefore, that a merchant's credit has been narrowed and confined to his particular bank, and the credit granting facility of the bank has been restricted to its own cash resources. Here then is the bane of rigidity once more dominant. The keynote of the whole system has been rigidity and inflexibility at every important point. We have been riding in a car of ancient and primitive make ; it has carred us well enough over the smooth level roads, but even there every bump and inequality has sent a quiver and thrill through the whole frame ; when we came to an up grade the old machine struggled and groaned, and the supply of gasoline, being unduly scattered, often gave out at the. crucial moment ; when we had gone over the brow of the hill and begun to descend there was no way of controlling, and it gathered dangerous speed till we landed against a stone wall and the old car had to go into the repair shop for months, while the passengers sat disconsolate by the roadside. 6 THE NEW ACT. 4 We have discarded the old model for the new one that has been put on the market. It is not perfect as yet, but it embodies all the 'essential 'features and the best tested developments of the world's financial engineers. It will give us a constant supply of fuel properly proportioned to our needs, a nearly perfect control of momentum; a smooth and easy flexibility of mechanism. possible danger will be that by reason of its ease and comfort, those in the driver's seat may be induced to exceed the speed limit ; but this danger will be largely minimized because the new machine will have certain automatic indicators which will give timely warning of approaching danger. Let us proceed, then, to study this new mechanism as far as we may. The Federal Reserve Act provides, first, a central board of control in the Reserve Board located at Washington. This is made up of seven members or directors ; two are to be members of the Cabinet, the Secretary of the Treasury and the Comptroller of the Currency. The other five are to be appointed by the President and are to hold office for ten years. The purpose of this Board is to have supervision and control over the Regional Banks. In order that there shall be expert opinion available in the deliberations of the Board there is provided a Council of Bankers ; this is to be known as the Advisory Council and is composed of one director of each Regional Bank. But the p?ovince of this Council is only that of advisors, and they are not given any direct power. The practical working of the system will be found in the Federal Reserve Banks, or to use a more explicit term, the Regional Banks. The country will be divided up into from eight to twelve regions, and in each of which there will be organized a Regional Bank. These Banks will be chartered and organized under the law, the stockholders being the member banks of the district. The management will be in a board of nine directors which will be representative of the Banks, the mercantile community and the Government, in three equal classes, to be known as Class A, B and C, respectively. The Federal Reserve Board will appoint the three members of Class C and will designate one of them as the Reserve Agent or Chairman of the Board, and another as the Deputy Agent. These Banks will receive deposits from the United States and from the member banks, will discount commercial paper held by the The only 7 member banks and discount paper in the open market when necessary. They may also establish branches within their districts. They will deal in Foreign Exchange and gold coin and bullion. They are required to carry a reserve of not less than 35% against their deposit obligations. They will issue circulating notes to the member banks against the bills rediscounted, and these notes will be abso- lutely secured : by a cash reserve of forty per cent, the paper rediscounted and the liability of both the regional bank and the member bank. These notes are redeemable on demand in gold at the Treasury in Washington, and in gold or lawful money at the Regional Banks, so that ample provision is made for their redemption and there will not be any redundancy. As the Regional Banks are to hold the larger part of the member banks' reserves, besides the deposits of the National Treasury, they will have an initial deposit of at least 500 million dollars ; while the total capital will be 107 million dollars. And it must be borne in mind that these figures are predicated on the assumption that only the National Banks of the country shall have joined the system. The attitude of the State Institutions is as yet undefined, and it is therefore too early to predict the possible increase in the magnitude of the Regional Banks. From this cursory view of the salient provisions of the Act we can readily see that the main defects of the old system have been largely eliminated. The hitherto scattered reserves will be gathered and concentrated in the Regional Banks so that their tremendous power will be focused on any one point where an emergency may arise. Instead of an inflexible and rigid note issue, we shall have one that is responsive to the needs of trade ; for activity and depression in business is expressed in the total of commercial paper, and as this is to be the basis of our note issue, it follows that the total amount of circulating notes will rise and fall with the total of commercial paper. And finally, and of paramount importance, the credit of the country will be rendered liquid by means of the rediscount provision. To the individual merchant and to the Bank as representing him, this provision is of surpassing value, for it will carry the credit of the merchant beyond the portfolio of the Bank and disseminate it throughout the country by means of the Federal Reserve 8 Note. It will amplify the credit-granting facility of the Bank by permitting it to utilize its portfolio, and so grant new credit to those who may be entitled to it. This will mean that hereafter no solvent merchant will have to fail merely for the lack of the well deserved credit that his bank, under the old system, was obliged to withold in a crisis. Nor shall we ever again witness the shame of a nation-wide suspension of specie payment on the part of the Banks, such as we had in 1907. I think that I have said enough to indicate the ease and facility with which this mechanism will operate, and the question perhaps arises in your mind as to the possible inflation that may result the exceeding of the speed limit. With regard to this, I apprehend but little danger, at least in the first few years of operation ; for because the system will be new and untried we shall be impelled to go slowly. It is a world-old truth, that when man is laboring under an excess of virtue he proceeds with an excess of caution. After that shall have worn off, it may be that we shall open the throttle too wide, but even then the automatic danger signals of an outflow of gold and a rising discount rate will compel us to slow down in time to avoid the accidentno sane driver will continue at top speed with the tank leaking and the engine knocking. BANK ACCEPTANCES. There is a provision of the Act whi6h we have not as yet touched upon, and it is a timely and welcome innovation. I refer to the Bank Acceptance. Hitherto no bank has been permitted to accept a draft drawn upon it payable at some future date; there could be no post-dated obligations. The lack of this authority has resulted in trammeling our foreign trade and placed an unwarranted tax on the financing of our imports. To consider an example that is concrete, we may take the instance of the importation of a thousands bags of coffee from Brazil. The New York coffee merchant contracts for this lot with the merchant of Rio, but he naturally deos not want to pay the value of fifteen thousand dollars before he shall have received the coffee nor will the Rio merchant make the shipment until he gets his money. The New York merchant therefore gets his bank to establish a credit at ninety days sight with a London banker, and this letter of credit is forwarded to the Rio merchant. On the basis of this credit the Rio merchant makes 9 his shipment direct to New York and draws a draft at ninety days' sight on the London banker, attaching thereto the shipping docu- ments, and sells the draft to the Brazilian Bank and so gets his money at once. The Brazilian Bank forwards the draft to its correspondent in London and draws against it so as to reimburse itself for its outlay. In the course of time the draft reaches London and is presented to the Banker, who accepts it and detaches the documents which he sends to the New York Bank ; and the holder of the accepted draft in London discounts it in the open market, where there is a constant sale for bankers acceptances, and so gets the money with which to pay the draft of his Brazilian correspondent. The New York coffee merchant then sells the thousand bags and hands enough of the proceeds to his Bank, who remits it to the accepting banker in London in time for him to pay the draft at maturity. The transaction is thus closed, but it has been a roundabout way to finance an operation between Rio and New York, and the worst of it is that the London banker refuses to work for nothing, and charges a commission for his acceptance of about one-half of one per cent on the fifteen thousand dollars. This is of course a charge on the New York merchant, and therefore on the merchandise, and it goes into the pocket of the London banker. When we consider that the one item alone of Brazil coffee amounts to something like a hundred million dollars a year, and that the same sort of operation is necessary in the financing of rubber from the Amazon, hides from the Argentine, diamonds from Amsterdam, and so on through a long and expensive list, we will realize how large a toll we have been paying to the European bankers merely for the use of their name. But by the provision of our new Declaration of Independence, we are opening the way to keeping this profit at home. The Act authorizes the Am Bank to accept drafts based on the import or export of merchandise, and by means of this acceptance the transaction we have described will be carried on direct between Rio and New York without the intervention of the foreign banker. The essence of this provision is that it grants a further facility to our Banks to dispose of their stock in tradetheir credit. The authority granted by the Act limits this operation to imports and exports, and provides that a Bank shall not accept to a greater amount than fifty per cent of its capital and surplus. I0 I believe that the facility should have been extended to our o domestic trade as well, and that the acceptance privilege should have been more ample as to amount. But these changes will come about in time ;, we have already made a good beginning. THE DISCOUNT RATE. Section fourteen of the Act contains an apparently simple and commonplace provision; it provides for the fixing of the rate of discount. A very modest title indeed for what it embodies, and one on which volumes might be written. It is in reality the power to regulate the inflow and outflow of gold. As Nature abhors a vacuum, so does gold, and the vacuum it dislikes is a low interest rate; it flies from the low one as from a pestilence and seeks the high one. We have hitherto been a free market for gold, and Europe has taken it when they had need, by raising the discount rate, while we have had no source of power to regulate the flow and protect our holdings. It is a lesson that the Bank of England learned after hard experience in the middle of the last century, and it has been practiced successfully by the central Banks of France and Germany. When the rate of discount in London and Paris is at a parity, the gold of each will stay at home for investment ; but just as soon as the rate is higher in one than in the other by enough to pay the cost of transportation, and yield a profit, the precious metal will fly from the lower level to the higher. To illustrate this point let us look at the Bank of England in the fall of 1907. In the month of August the rate was 42% and we were drawing heavily on her gold supply ; the rate was raised to 52 % then to 6%, and still we drew ; till finally it was raised to 7% in November, and the return movement set in and by January the rate was again lowered to 4%. It is interesting to note the reply which the Governor of the Bank of England made to our Monetary Commission when commenting on this occurrence. He said that if seven per cent had not been effective, the Bank would have made it ten per cent, and added "that ten per cent would draw gold out of the ground." And now we have entered the arena, to show our prowess while the others have begun to take notice. Mr. Moreton Frewen, the English authority on financial and economic matters, said recently : "Here is Uncle Sam, with the power of a hundred Morgans, entering the bill discounting business and prepared to do the II world's business. Therefore, every Banker knows that stringency and contraction have disappeared and that a new day has dawned. This Act is a bigger thing, by all odds for the world's trade than the Panama Canal." A CENTRAL DISCOUNT MARKET. So much for our possibilities, but we must provide for their It has been decreed that our credit is no longer to remain in isolation, but we must do more, and provide a market realization. place for its ready convertibility. We need an open discount market where our buyers and sellers and the buyers and sellers of the world shall meet and transact their business. Our time will not permit us to enquire fully into the detailed workings of such a market, but we may enumerate the advantages to be derived therefrom and the essential features necessary to constitute it. The advantages will be (I) that it will furnish a central place where the operation of dealing freely in short-time bills, either commercial or bank acceptances, can be carried on in the quickest and least expensive manner, and so bring together the buyer and seller with advantage to both. (2) Our Banks will find in it the means of investing their surplus funds in short time bills instead of in the Stock Exchange call money market as hitherto ; and con- versely, a bank will find a ready and facile market where it may dispose of a part of its portfolio to meet a temporary call for funds. It is only in this manner that a finely adjusted balance can be (3) The Federal Reserve Bank will find in it the maintained. throb and pulsation of our commercial activity, and by a judicious control of the discount rate will prevent over-trading and will succeed in checking a drain of gold. The credit of the country will have an ebb and flow abroad which it has never adequately enjoyed before, and the result will be an equalization and stabilizing of our interest rate. I believe that we shall soon find it necessary to do away with our so called usury law, for if six per cent is to be our maximum limit, then that will be the maximum power we shall be able to exercise in controlling the outflow of gold ; we'must be left free "to draw gold out of the ground with 1a ten per cent rate" if necessary. The central discount market will place itself where economic laws shall dictate, and not where legislation may presume to say. 12 It will locate itself in the city which will provide to the greatest degree the three essentials for its operation: The best domestic and foreign mail connections. The 'largest aggregate of banking capital. The greatest concentration of private capital. I have only to remind you of the fact that New York State has a manufacturing production of $3,400,000,000 and an agricultural Production of $2o9,000,000 and that New York City has a foreign commerce of $2,140,000,000 and Bank clearings of $94,500,000,000 to feel sure that you will agree that when the great discount markets of the world are enumerated they will be London, Paris, Berlin and New Yorkand they will not remain always in that order of importance. LI 9 /12 P. 0. BOX 46 TELEPHONE RECTOR 4901 TO 4919 LIBERTY LOAN COMMITTFE THE LIBERTY LOAN COMMITTEE PUBLICITY DEPARTMENT GUY EMERSON DIRECTOR OF PUBLICITY BENJAMIN STRONG. CHAIRmAN JAR S. ALEXANDER EQUITABLE BT ITT DLN G TWENTY-FOURTHFL 0 OR jE F. BAKER ALLEN B. FORBES WALTER E. FREW GE 12 0 GATES W. MCGARRAH J. P. MORGAN SEWARD PROSSER BROADWAY JAMES I. ASSISTANT DIRECTOR INCHARGENGBUREAU JOHN PRICE JONES ASSISTANT DIRECTOR IN CHARGE, PRESS BUREAU NEW "YORK C. F. PRITCHARD MANAGER. OFFICE BUREAU CHARLES H. SABIN JACOB H. SCHIFF FRANK A. VANDERLIP MARTIN VOGEL JAMES N. WALLACE ALBERT H. WIGGIN WILLIAM WOODWARD GROSVENOR FARWELL MANAGER. SERVICE BUREAU April 18, 1918 Mr. Benjamin Strong, Governor Federal Reserve Bank of New Yory 120 Broadway, N.Y. City / Dear Mr* Strong: The enclosed is an assortment of material recently put out by the Publicity Department, which I believe you will be interested in having. The use to which most of it is being put will be readily understood except in such cases as have been indicated by special notations. Sincer (Enclosures) S, Equitable Buildini Yew York Washington, May 22/18. .4 Dear Emerson - I hays been seeking the right time to send you a few lines about the loan; and this is the first spare moment. No one could take greater ii,ride and satisfaction in having a part in a great task, than I do in my association with you and the Liberty Loan Staff. ;:ork for one's Country is usually impersonal, - and too often perfunctory. For me this is a work of real blood affection, - of course on account of that boy of mine - and I feel that you insure his are all striving with me, to safe and .speedy return. There are no reservations or doubts in my mind as to the saint, ability or affection of the organization, - it is a very great thing that it is dog, - but the credit for the results belogs to you a share. end the others, - and of that I get much too large I am writin.:,: to congratulate you and express my admiration fif your ability, patriotism and of the 6U:30:DEIS which thosetwo always insure. Yovirs, BENJ. June 15, 1918. Dear Emerson: My visit in Washington was in every way satisfactory and I think the program that I have in mind can now be carried out, but, before undertaking it, I want to sit down with you and Anderson and work out this program in detail and I am writing to wet: if you can join me at three o'clock Monday afternoon and spend the balance of the afternoon, dinner and the evening with Anderson and myself in discusakia the whole subject. We have now reached a point where we must do something far more important than anything heretofore attempted and, frankly, it may mean the winning or losing of the war. Very truly yours, Guy Emerson, 3sq., Liberty Loan Committee, 120 Broadway, New York. BS.MS8 Nov% __a Mr. Emerson TO GOVERNOR STRONG: You will recall that after the previous Loanye...,11-i-Viets a small emergency fund. which the members of the.Liberty Loan Com- mittee have seen fit to make up. I have now received all vouchers covering our emergency fund for the Fourth Liberty Loan, and I find they amount to a total of 507.34. --+ 3 6 . z 41 3 3, Mr. Morgan has been over all these items and indicates that these are the only ones remaining which he cannot pay. This d(would amount to a contribution from each member of the Committee of 3 20.49. The checks collected from them by Mr. Curtis after the last loan amounted to approximately $26.00 each. The vouchers which I have for this Loan cover the following items: Cigars and cigarettes furnished to members of the visiting Foreign Legion, wounded :,.arines, Italian Bersaglieri, Alpini, and other similar delegations. Cigars and cigarettes furnished to representatives of the'press, and to some volunteers who did. important work at the Liberty Loan and were not otherwise compensated. Cigars and cigarettes were not furnished to members of the permanent staff in any instance. Cigars and cigarettes furnished to members of the. Liberty Loan Committee and others during the visit of Secretary McAdoo to New York, and to members of the Liberty Loan Committee and of President Wilson's personal party on the occasion of the President's speech at the Metropolitan Opera House. A wreath placed on the grave of one of the Italian _T:ersaglieri who died while he was campaigning for us here. If this meets with your approval I would. suggest,that have you have Mr. Barrows send the letters to the members of the C-arnmittee and I will furnish him the vouchers if you think proper in order that he may send checks direct to the cigar people and. florist. Or if you prefer,if 1:r. Barrows. will deliver the checks to Mr. Coffin /n my office, he will attend to the payments. ,C7 _ /Thr a DeceMber 12, 1918. My dear 4merson: i enclose copy of a letter which I am writing to kr.. ,;ones. You wili gather from what I stated at our meeting yesterday that I felt that both you and he have a joint responsibility for the situation which veloped and are jointly entitled to credit for clearing it up, but thee is 'another aspect of the matter which in more Important to you personally than it is to him. You are the head of that organization. The loyalty, friendship and support of the men in it can be kept Or lost according to the way they are handled, and beyond anything and everything your job from now on is to develop such a personal relationship through- out the orz:Anization with yourself that when this work is done, as it will be shortly, you will have a host of friends and ho regrets, If that is not the result you will have failed, and what I will feel even more keenly I wAll have failed with you. You have got to ]uit this job a better man than when you came inor it will be our joint responsibility or joint failure, and I am not inclined to face anything like failure of that :,ort without a pretty stiff struggle. It is a heart-breaking matter for me to be away just now, and I 'hope you will take and keep and observe the advice I have given in the spirit of friendahip, and never for a moment let it out of your mind. Ilincerely your friend, 4uy rnerson, Leo" Director of ,ublicity, Liberty Loan jrzanization 12J Broadway, New York. December 12, 1918. Dear jar. Jones: am very glad similar advice from jar. to have your letter of the lJth and Emerson: You have a position of importance in tion, but somtthing of much tion and respect of your greater value, associates. you should leave the organization you such an imoortant and useful this organiza- and that is the affec- I am quite unwilling that under circumstances which make forget member of it. that you are not working for me, neith4r for the bank, but for the country, and you are not doing it for money just because you want to do it and it is or for glory, but the best work yclu will ever do and you cannot afford to quit before it is all done. Very truly yours, aovernor. John ITice Jones, kublicity Department, Liberty Loan jrganization, 12j jiroadway, New York. Don't TELEPHONE 4901 RECTOR TREASURY DEPARTMENT SECOND FEDERAL RESERVE DISTRICT LIBERTY LOAN COMMITTEE GUY EMERSON ASSISTANT DIRECTOR IN CHARGE PRESS BUREAU AND FEATURE BUREAU NEW YORK BENJAMIN STRONG. CHAIRMAN JAMES S. ALEXANDER GEORGE F. BAKER ALLEN B. FORBES WALTER E. FREW GATES W. McGARRAH J. P. MORGAN CHAIRMAN PUBLICITY DEPARTMENT DIRECTOR OF PUBLICITY 120 BROADWAY THE LIBERTY LOAN COMMITTEE CENTRAL LIBERTY LOAN ORGANIZATION BENJAMIN STRONG. JOHN PRICE JONES ADVERTIRING Oti46 BAYARD, F. POPE MANAGER OFFICE BUREAU C. F. PRtTCHARD MANAGER. s1REAU SEWARD PROSSER J. HORTON !JAMS CHARLES H. SABIN JACOB H. SCHIFF FRANK A. VANDERLIP MARTIN VOGEL JAMES N. WALLACE ALBERT H. WIGGIN WILLIAM WOODVVARD MANAGERFOREIGNLANGUAGE ANDLASORSUREAU JOSEPH HARTIGAN EXECUTIVE SECRETARY FOSTER M. COFFIN December 18, 1918. Mr. Benjamin Strpng, Clime, Lake George, New York. Dear Mr. Stro ng: I have received, as you have, the two invitations from Whalen and Loft to join the Mayor's Committee to receive homecoming soldiers. Whalen invites me to be a member of the large committee of which Rodman Wanamaker is Chairman, and Loft invites me to be a member of the sub-committee on pageants of which he is I understand that you declined both of these invitations on the ground that you were going to be away from the city. chairman. Of course under normal circumstances I would went to turn both these requests dom because of obvious reasons. There has been a good deal of talk about Mr. Hearst being appointed chairman of the sub-committee of Mx. Wanamaker's large committee, the sub-comittee having charge of the actual reception of the returned soldiers. But there are two considerations which I want to lay Pe,'" OFFICE BOX L STREET STATION 2 before you. The first is somewhat personal in character and has to do with the perpetuation of the Altar of Liberty which was started under our auspices. The Art Committee in charge of this work is excellent, being principally under the direction of Thomas Hastings and Paul Bartlett. I think they will do a good job and I believe, irrespective of changing political personalities, we shall all be glad to see the arch and the altar made permanent along the lines of Mr. Wallis' remarks at the luncheon which you attended at the Bankers Club some weeks ago. The other point has to do with the necessity of my either accepting or rejecting the offer of Whalen inasmuch as I shall inevitably have to be associated with Whalen in various capacities in connection with the next Liberty Loan. In other words, Whalen's invitation comes to me not as an individual but in a representative capacity and I feel, and Mr. Jones feels, that if I were to turn this down it would man that when we had any request to make in the next loan we would probably be met with no very cordial response. I should appreciate your letting me have your advice in the matter. Everything is going well and all send you best wishes. Sincerely your Misc. 37 ;fice Correspondence TO FroAn FEDERAL RESERVE BANKOFNWWYORK Mr. Emerson -30/ DateDeOember 26, 1918. Subject : ----41111111i" Benj. Strong. \74.- Replying to yours of the 18th instant, which I have been unable to do until to-day, I feel that your decision as to the Mayor's Committeesis purely a personal matter, except the one relating to the memorial arch. I have no desire, personally, to irritate the Mayor on account of our dependence upon the city authorities in connection with the Government financing, but, on the other hand, I have no desire, and, in fact, have no intention of serving on the committees, .so have declined all of the invitations. As to the Rodman Wanamaker committee, I have received a printed list of those who are being invited to serve. Mr. Hearst's name does not appear on the list, and if he is not to be appointed, I should suppose there would be no objection to anyone accepting the invitation. work. That matter, as you say, has a relation to our It grew out of one of our own enterprises; and it seems to me proper for us to take some interest in the permaLent memorial, so long as we can do so without loss of self respect. Now as to the other committees, of which I believe mr. Hearst is chairman, 4 think one must decide those matters according to his own preference, sentiments and prejudices. You would be serving as an individual, and not representing any organization, as I understand it, and if you feel that no stigma attaches to that association, why I wouldn't hesitate if I were you to serve. On the other hand, many people do not care to be associated in any way with Mr. Hearst, and have declined to serve. I think I should have felt obliged to do so myself, even though I Were going to be in the city. I have written Mr. Wanamaker that while I can not serve, I will be glad to contribute to the arch and help in any way that I can. BS/MSB z OST OFFICE Box 46 (IL TELEPHONE 4901 RECTOR ...,ALLSTREETSTATION CENTRAL LIBERTY LOAN TREASURY DEPARTMENT ORGANIZATION BENJAMIN STRONG, SECOND FEDERAL RESERVE DISTRICT CHAIRMAN LIBERTY LOAN COMMITTEE 120 BROADWAY NEW YORK ..r.0 LIBERTY LOAN COMMITTEE ENJAMIN STRONG. CHAIRMAN JAMES S. ALEXANDER GEORGE F. BAKER PUBLICITY DEPARTMENT DIRECTOR OF PUBLICITY GUY EMERSON ALL XESFSTANT DIRECTOR 4.0 IN CHARGE. PRESS BUREAU AND FEATURE BUREAU JOHN PRICE JONES 1., MANAGER, ADVERTISING BUREAU BAYARD F. POPE ALLEN B, FORBES WALTER E. FREW ATES W. McGARRAH J. P. MORGAN MANAGER.OFFICEBUREAU C. F. PRITCHARD SEWARD PROSSER c CHARLES H. SABIN JACOB H. SCHIFF FRANK A. VANDERLIP MARTIN VOGEL JAMES N. WALLACE ALBERT H. WIGGIN WILLIAM WOODWARD DIV1ER. rEDT,P L MANAGER FOREIGN LANGUAGE AND LABOR BUREAu JOSEPH HARTIGAN 4-)4CipTianuary 13, 1919. 2 ouR.A. J. HORTON IJAMS EXECUTIVE SECRETARY FOSTER M. COFFIN 5 190 PIED Mr. Benjamin St-I" Olt ESER Cluneden, P2f1. Lake 'George, N. Y. Dear Lir. Strong: I have your letter to Wallis which I have forwarded to him. You will be interested to know that I wrote dhalen telling him that I had accepted the appointment onithe Wanamaker Arch Committee and felt that I could do my best work there. I assumed that being a member of a sub-committee naturally implied membership on the large committee. He wrote back expressing regret that I did not have time to work on the large committee taking my letter r2s a refusal but stating that he appreciated how busy I was and felt that by serving on the Ranamaker Committee I was doing the right thing. Consequently the relations are as they should be and I am not in the position of having to serve on a committee with Hearst. Whalen told me thet he went personally to the Mayor and told him that he would not serve on the danamaker Committee unless that committee was considered a separate and independent committee from the other. The Llayor conceded this point so that the danamaker committee of which we are now members is entirely distinct from any -2- connection with the Hearst question. It is a fine committee and 44t"#* is doing a work for the city which I feeld,VA,will certainly want .ve to be connected with. to be advised I know you will bqintere 44s 7> of this happy conclusion of the wholatt'dr.,,,,_ ,}72 I just returned from a flying to ffuffalo where I ,h succeeded in missing by an hour one of the wor . ecks in the history of the New York Central, and also succeeded in the main object of my visit, which was to get Walter Cooke to act as head of War Loan Organization in Buffalo, assuming the responsibility for the appointment of a County Director of War ,)avings. This was of course the logical thing to do and had the full approval of Hay Morris. In fact he had already approached Cooke for me in a tenative way before I went up to see him and talked the whole matter over with him. It is a great big 1110 hill push getting this War Savings campaign going, but my enthusiasm feeds on success and I am going to have a very fine and representative group of men throughout the district really putting their best thought into this thing. I cannot guarantee anything as to results but I can guarantee that as representative a body of men and women,as it will be possible to find,will be giving the matter their full consideration,and their experience will be the basis of conclusions which we can absolutely rely on when it comes to the exact lines future savings policies should take. We shall soon be in sha).)e to submit to the committee a written outline of policy, and a first class organization both headquarters and throuhout the district. I am not going to touch on any of the discouraging features in this situation because while they are difficult and of most amazing variety they really yield like the snoopfore the sun, 1,42* the fundamental consideration that our proposition it is endorsed by the United States Gove*Ient asight and that Oichi people approached are citizens and in 99% of the cakenseihAsh and patriotic citizens. The ,3-lass dinner has been postponed at his request until February owing to a multiplicity of engagements incident to his getting in touch with his job. He has accepted positively but with the specific date held in abeyance. Sincerely yo P. S.. Mr. Darrigan of the French High Commission said that the only acknowledgment of the Legion of Honor appointment at the present time should be sent to Mr. de Billy, and that when the newly appointed chevaliers were in Washington it would be very appropriate for them to call on the Embassy and on the French High Commission. . He stated also that it was appropriate to wear the insignia of the chevalier of the Legion of Honor now that the designation was made even though the medal had not been formally delivered. a red. ribbon to be worn in the buttonhole. This insignia is I will obtain it for you and forward it to you as soon as possible, together with a sketch showing how to wear it. January 13, 1919. From Mr. Emerson LI BRARY 1, SEP 18 1::!9 To Governor Strong FEDERAL RESERV1F BANK You will recall that after the previous Loans we have had a small emergency fund which the members of the Liberty Loan Comnittee have seen fit to make up. I have now received an: vouchers covering our emergency fund for the Fourth Liberty Loan, and I find they amount to a total --ofj385.92. Nimmommimimma- Mr. Morgan.has been over all these items and indicates that these are the only ones remaining which he cannot pay. This would amount to a contribution from each member of the Committee of 25.73. The checks collected from them by Mr. Curtis after the third loan amounted to apPro-cimately 26.00 each. The vouchers which I have for this Loan cover the following items: Cigars and cigarettes furnished to members of the visiting Foreign Legion, wounded Marines, Italian Bersaglieri, .11pini, and other similar delegations. Cigars and cigarettes furnished to representatives of the Press, and to some volunteers who did important work at the Liberty Loan and were not otherwiSe compensated. Ciirrs and cigarettes were not furnished to members of the permanent staff in any instance. Cigars and cigarettes furnished to members of the Liberty Loan Committee and others during the visit of Secretary McAdoo to New York, and to members of the Liberty Loan Committee and of President qilson's personal party on the occasion of the President's speech at the ::etropolitan Opera House. A wreath placed on the grave of one of the Itdaian Bersaglieri who died while he was campaigning for us here. 'dr 5. Expenses of dinner given by Governor Strong during the Fourth Liberty Loan to several French officers at Delmonicos. -21.20. 6. Expenses of dinner given by Governor Strong at the . Down Town Association to a number of members in the Liberty Loan Organization 7. Expenses of a dinner to certain members of the Publicity Department -on October 19 - :42.00. If this meets with your approval I would suggest that you have Mr. Barrows send the letters to the members of the Com- mittee and I will furnish him the vouchers if you think proper in order that he may send checks direct to the cigar people and florist. Or if you prefer, if Mr. Barrows will deliver the checks to Mr. Coffin in my office, he will attend to the payments. '141 F.,nT OFFICE BOX 46 TELEPHONE 4901 RECTOR .ALL STREET STATION TREASURY DEPARTMET SECOND FEDERAL RESERVE DISTRICT bit tft. LIBERTY LOAN COMMITTele 120 BROADWAiy NEW YORK'' THE LIBERTY LOAN COMMITTEE BENJAMIN STRONG. CHAIRMAN JAMES 9, ALEXANDER GEORGE F. BAKER ALLEN B, FORBES WALTER E. FREW ATES W. MCGARRAH J. P. MORGAN CENTRAL LIBERTY LOAN ORGANIZATION BENJAMIN STRONG, CHAIRMAN PUBLICITY DEPARTMENT DIRECTOR OF PUBLICITY GUY EMERSON 444 TANT DIRECTOR IN CHARGE, PRESS BUREAU AND FEATURE BUREAU JOHN PRICE JONES MANAGER. ADVERTISING BUREAU BAYARD F. POPE MANAGER. OFFICS. BUREAU C. F. PRITCHARD SEWARD PROSSER MANAGER. SPEAKERS BUREAU CHARLES H. SABIN JACOB H. SCHIFF FRANK A. VANDERLIP MARTIN VOGEL JAMES N. WALLACE ALBERT H. WIGGIN WILLIAM WOODWARD J. HORTON IJAMs MANAGER FOREIGN LANGUAGE AND LABOR BUREAU JOSEPH HARTIGAN EXEcuTIvE SECRETARY FOSTER M. COFFIN January 14, 1919. Mr. Benjamin Strong, Cluneden, Lake George, N. Y. Dear Mr. Strong: Here is a ribbon of the Knight of the Legion of Honor, which I obtained throue;h the courtesy of Tiffany's. The clipping enclosed is sufficient for a number of ribbons. It is passed through the buttonhole and tied under the lapel as per sketch on the envelope. Sincerely yours Z7FAN) 4°14(rA; TELEPHONE 404 RECTOR POST OFFICE BOX 48 WALL STREET STATION TREASURY DEPARTMENT CENTRAL LIBERTY LOAN ORGANIZATION BENJAMIN STRONG. SECOND FEDERAL RESERVE DISTRICT CHAIRMAN LIBERTY LOAN COMMITTEE PUBLICITY DEPARTMENT DIRECTOR OF PUBLICITY 120 BROADWAY te NEW YORK LIBERTY LOAN COMMITTEE GUY EMERSON k% -tectp BENJAMIN STRONG. CHAIRMAN JAMES S. ALEXANDER GEORGE F. BAKER ALLEN B. FORBES WALTER E. FREW GATES W. McGARRAH .1. P. MORGAN SEWARD PROSSER CHARLES H. SABIN JOHN PRICE JONES MANAGER. ADVERTISING BUREAU BAYARD F POPS 4 AI /, ,7) 44,174:171 OFFICE BUREAU pRITCHARD C. ,ss, 4*,, '.....i MARTIN VOGEL JAMES N. WALLACE ALBERT H. WIGGIN WILLIAM WOODWARD J. HORTON IJAMS /. .).', JOSEPH HARTIGAN ti., . Is.; ....... January-15, 1919. MAN QOM SPEAKERS BUREAU MANAGER FOREIGN LANGUAGE AND LABOR BUREAU tr,N. JACOB H SCHIFF FRANK A. VANDERLIP ASSISTANT DIRECTOR IN CHARGE PRESS BUREAU AND FEATURE BUREAU .. EXECUTIVE SECRETARY 4 ....is /44. FOSTER M. COFFIN Mr. Benjamin Strong, Cluneden, Lake George, N.Y. Dear Mr. Strong: Ye had a stenographic report made of the speech of Secretary Glass at the bankers dinner in New York on Monday night, January 13. I thought you might like to have an accurate report of what he said on that occasion. Since ly you s, e iLp u 'v I, Dr-7pr 1.:=7) Imo Goorg_a , N. kr..ry 14 Pr'DERAL Tf, 1919. Dear lir. nIserson: Sks- a% glad to have yours of the seventh/and to learn something of how things ere going, rn the first place, a rord of caution about tour work: from the evidencee Iam satisfied ip your own letter that you are overdoing it. know it is a mistake, aad I know that somewhere along the line you are going to fail to cover the ground if you take too much upon your arm shoulders. . At the risk of burdening you with some repetition, I went to give you some view0f4sy own, which I know you/Will regard as having all the quality of the laws of the Medesend Persians, the observelnco of vbioh 1 believe those ancients -ogarded us imperative: 17iret am to staff mletings I want you to attend them all in person; to be there then they start and to stay until they end. Seoond, I ,rant you to scrupulously submit at those 'daft meetings your .ntire program end Policilv, and be particular not to make any engagements by way oSn,portent nyoeintments at personnel or organisation without taking it up at those itqetingo. Thirdw. 1 went you to carry out in literal detail my previoue reoommendep. tions in regard to expenditures, budget and literature. So much by Way of preliminary au6geetion. My reasons tir emphasising theoe points ore because I see ty your Lettore and my corresoOndonce with Mr. Pope that you ere now procaeding vigorously with the work of organisetiov and with the preliminary approach to the various elements in the orgenieetienoftr the carrying out of e program. That program, and livery r 2.10.19. 4,...merson step approaching its execution should be adopted at OW meetings Wed the whole made a harmonious understanding between the chinf5*, As to the literature - I dedidedly disagree wit64*Weatatement about quantity and variety. I know from plenty of evidences that SOW districts were oversupplied, and some of thea rather late, with literature that emanated from i-ashington, and that in some cases it was not scientifically distributed with regard to the needs mod character of the different communities. or three incidents which I recently heard of. I mentioned but two There were e good many others that came up immediately after the loan was concluded. I won't repeat That appeared in my last letter as to the character of the Gary. literature. That I am convinced ie necee- . That you say about the attitude toward the loan being cold is exactly right. Ire must undertake the difficult enterprise of reviving a dying cause, but we can do it, end I get great encouragement from your own enthusiasm. I um particularly pleased to learn that the old war ravings organisation is being taken into our councils, so far as possible. I am sure you discuss at staff meetings. This and similar matters My point about the savings bank work re- lated someWhet to Mr. Pulleyn's personality (with Which I am acquainted) but it also related to Mr. Pope's program of soliciting advertising funds; its direct contact with the distribution organisation and of course, its rsletion to all ether plene that you make both for publicity and for the war savings campaign for the future. When undertaking s new policy or to build up a new organisation, the interlocking of the itole is so close that the staff meeting should consider your program in all of its elements. I must conies, that this is semeahat inspired by one Which I have from Mr. Tremen, in Which he expresses concern about your health, your long hours, as*td the severe load that you are etruggIing under. and don't overdo it. For goodneve rake do be I am looking forward to having a good evening with you on Pridey. practical 'pith best regards, Sincerely yours, March 5, 1919. Dear Mr. Emerson: Since our chat night before last I have given a good deal of thought to what you told me about the dinner party. I understood you to say that a movement was on foot, the suggestion coming from a number of members of the Liberty Loan Organization, that when the Fifth Loan was concluded they wanted to give me some sort of a testimonial din- ner. I would not be truthful if I did not admit that I was greatly pleased to learn that any one had such a thought in mind. Te are all frail enough and vain enough to take pleasures in such affairs, but are the circumstances just now such as would justify my agreeing to the plan? After the fullest possible consideration, I am sure that I am right in askkng you,by whatever means you think best, tc arrange to have the plan abandoned. I can't ask you to do this without explaining the reason which after all is simple enough. The enterprise in which we have been engaged is an or- ganized effort participated in by thousands of people to perform a.patriotio service. Were I to accept the opportunity which this dinner would undoubtedly afford of appearing to be in any way different, entitled to more credit or getting any more praise or laudation for the work than any other member of the Organization, I would fool that I was taking from them something that did not belong to me. One of my greatest difficulties in the whole course of this effort of ours has been to convince my own associates that I do not want credit for doing things that I have not done, and that any desire for personal praise or 2 liarch 5, 1919. acclamation, or anything of that sort should, so far as is humanly possible, be eliminated from the Organization. The work has been done by many thousands of people in the spirit of selfsacrifice and patriotism and I would be abandoning the very fundamental principle which has given inspiration to the whole Organization were I to put myself in a position of taking credit which is not due me. Such work as we have had to do must necessarily be conti.olled by one head. Circumstances happened to make mo the head of the Organization, but my duties have not required me to make the sacrifices that others have made, to work as herd as others have worked, nor, indeed, am I entitled to but a very small part of the credit for the results and I really cannot consent to being put into a position of taking something that does not belong to me. I fear and dread the possibilities of a dinner of that sort proving to be an opportunity for laudation and praise that I am not entitled to and really should not have. You must not think that I don't appreciate the thought very deeply and I hope you can so arrange matters that those who were responsible for this suggestion originally will understand that, without question, and I thank you a thousand times for giving me the opportunity to write this letter. What I want from the Organization is their confidence and affection. I've got that, I don't want anything else. Faithfully yours, Guy Emerson, Esq., Government Loan Organization, 120 Broadway, New York. BS/MLB If TELEPHONE 4901 RECTOR 'ST OFFICE BOX 46 ./AI STREET STATION GOVERNMENT LOAN ORGANIZATION VICE-DIRECTOR IN CHARGE OF SALES MRS. JOHN T. PRATT. LIBERTY LOAM COMMITTEE WAR SAVINGS COMMile*Ki VICE-DIRECTOR IN CHARGE OF WOMEN'S ACTIVITIES ALBERT M. CHAMBERS. ASSISTANT To THE DIRECTOR SHEPARD MORGAN, 120 BROADWAI NEW YORK DIRECTOR GEO. W. HODGES, SECOND FEDERAL RESERVE DISTRICT BENJAMIN STRONG, JAMES S. ALEXANDER GEORGE F. BAKER ALLEN B. FORBES WALTER E. FREW GATES W. MCGARRAFI J. P. MORGAN SEWARD PROSSER CHARLES H. SAWN JACOB H. SCHIFF FRANK A. VANDERLIP MARTIN VOGEL JAMES N. WALLACE ALBERT H. WIGGIN WILLIAM WOODWARD IA. ANDERSON. VICE-DIRECTOR IN CHARGE OF PUBLICITY AND WAR SAVINGS TREASURY DEPARTMENT THE LIBERTY LOAN L. 'IAMITTEE A. GUY EMERSON, COMPTROLLER GILBERT B. BOGART, ASSISTANT DIRECTOR OF SALES JUN FEDERAL "19 REStRV t JOHN PRICE JONES, ASSISTANT DIRECTOR oF PUBLICITY IN CHARGE OF PRESS, SPEAKERS AND FEATURE BUREAU iStAYARD F. POPE. ASSISTANT DIRECTOR or PUBLICITY IN CHARGE or ADVERTISING BUREAL VERNON MUNROE. ASSISTANT DIRECTOR OF WAR SAVINGS JOHN J. SCHUMANN, JR.. EXECUTIVE SECRETARY DEPARTMENT OF SALES FOSTER M. COFFIN, EXECUTIVE SECRETARY DEPARTMENT OF PUBLICITY May 27, 1919. Mr. Benjamin Strong, Federal Reserve Bank, 120 Broadway, New York. Dear Mr. Strong: I thought you sght care to have a set of the resolutions passed at the Committee eting this morning. Alexander I am taking u and signed. At the request of Mr. the matter of having them suitably engrossed / I expect/ to talk to Mr. Kunz at Tiffany's this afternoon, / and-after getting in the matter. advice will consult with you as to your desires /'S Sincerely yours, Enc. 'Pt PC McGARRAH PREANBLE. No group of men can work together upon great for a length, of time without having revealed to them one another';, qualities, - without coming to feel that there are those among them to whom they would be proud to pay tributes of respect. WHEREAS the members of the Liberty Loan Committee for the Second Federal Reserve District feel that the success achieved for the five Liberty Loans in the territOry under their supervision is in a large degree due to the work of the Money Committee under the guidance of Gates W. McGarrah, who always showed foresight and cool-headed judgment, therefore be it RESOLVED that the Committee does herewith make this record of its appreciation of the eminent service which Mr. McGarrah rendered to our country and also its admiration for his continual unselfish devotion to the arduous tasks with which the Committee was unceasingly confronted, sacrificing his awn time, energies and individual interests; and furthermore, be it/ RESOLVED that on the eve of bringing an end to our more active participation in war finance, we take this occasionto express our warm personal regard for him as a comrade throughout the difficult times so happily coming to a close. Elf-RSON. PREAMLE. One of the outstanding features of. the five Liberty Loan campaigns has been the way in which publicity was made into an 110.resistible force.for the public good, developed to a degree and extent never before realized and applied to the purposes of all the Loans with a daring of vision that stands without precedent. WHEREAS Guy Emerson, as vice-director of the Government Loan Organization in Charge of Publicity; has from the very beginning of war loan work in this district devoted his great energies to the task of publicity and has through that/medium prepared the way for the sale and distribution of Liberty Bonds by creating among all the people a common eagerness to serve their country, therefore be it RESOLVED that the Liberty Loan Committee does hereby express its admiration for the creative work accomplished by h±. Emerson and for the manner in which he carried into concrete fUlfi visions of his own inspirations for public service; ent the splendid and furthermore, be it RESOLVED that the Committee does also express the high personal regard which it has come to feel for Mr. Emerson as a result of its frequent contact with him through the five arduous campaigns. MR. ANDERSON PREAMBLE. When a group of men undertake to organize a vast new enterprise, they find themselves confronted with special problems that can be met with the highest degree of efficiency only if they are fortunate enough to find men peculiarly equipped to grapple with the specialized questions involved. In organizing the work of the Liberty Loan campaigns, the Liberty Loan Committee for the Second Federal Reserve District was confronted with the technical problems of bond flotation on a scale hitherto unattempted. WEEREAS A. M. Anderson, as director of the Government Loan Organization, through his experience and knowledge in regard to bond issues and market conditions in connection therewith, has rendered this Committee and the country unequalled service in connection with the sale and distribution of Liberty Bonds and has successfully coordinated the multitude of divisions working together. in the general organization, therefore be it RESOLVED that the Liberty Loan Committee does hereby express its deep obligation to Mr. Anderson for the preeminent services he has rendered in a work of vast scope and infinite detail, exercising unflaggingly a zeal for the public good and a soundness of judgment without which such complete success would have been impossible;, and furthermore, be it RESOLVED that the Committee expresses its warm personal regard for him as an associate in the work it has now brought to a successful conclusion. OVERN OR S MON& PREAEBLE . It is always a pleasure to pay tribute to leadership, and now that the five Liberty Loans of the United States have been written down as glorious chapters in our public finance, the members of the Liberty Loan Committee for the Second Federal Reserve District esteem. it a privilege to pause and pay such tribute to one whose services stand forth as of preeminent value to his country. It seems eminently fitting at this time to speak words that in the hurry of the nation's great emergency were, perforce, left unspoken. Wi.TEREAS Benjamin Strong, as chairman of the Liberty Loan Committee f or the Second Federal Reserve District, has risen to a high occasion, and has discharged the responsibilities, the duties and the arduous tasks of that position with a zeal for the public good and with a soundness of judgment that ranks his work among the most devoted instances of service rendered to the United States during the war, therefore be it RESOLVED that the Liberty Loan Committee, although feeling that words are insufficient to express . its full and sincere appreciation of his services, does hereby record its admiration for the inspiring . leadership of Benjamin Strong through the five War Loan campaigns in which it has been associated with him; particularly and furthermore, be it RESOLVED that the Committee does hereby express its affectionate regard for him as a'man and as a co-worker in the great task it undertook at our country's time of need. 4 ARTICLE IN JOURNAL OF C(=E:),CE - 5/29/19 C, GOV. STRONG DTTED BY LOAN 7T0RKERS EX-SEC'Y M'ADOO PRAISES THE FEDERAL RESERVE HEAD. flany Bankers Present at Victory Dinner In the Waldorf-Astoria Secretary Class Unable to Attend f Members of the Liberty Loan Organization gave a dinner in honor of Governor Benjamin Strong of the .3ec-,er.d. Federal Reserve District and the General Liberty Loan Committee at the Tialdorf-Astoria lest nikeht. The dinner was held in recognition of Governor StronE's services during the war lcans, and he was given an enthusiastic reception. -Secretary of the Treasury Carter Glaes, who was to have been one of the speakers, was unable to attend, end he was represented by Assistant Secretary of the Treasury Russell LeffinEwell. The guests were Shepard 7. argan, James N. Wallace, Pierre Jay, Albert H. Wi.ggin, M.rs. John T. Pratt, Sward Prosser, Guy 74.merson, George Foster Peabody, Jamee S. Alexander, A. M. Andersen, who was toastmaster; William G. 71:cAdoe, Allen E. Forbes, George Hodges, Jacob H. Schiff, Mrs.. Courtlandt D. Barnes, Charles H. Sabre, Gates McGarraeh, Frank R. Wilson, ,::alter E. }"row and iilartin Voel. After the dinner there was an entertainment on a platform that had been improvised, and the diners wre particularly pleased with the work of 7iiss Cecil Arden, of the Metrc-2c1itan Opera CoTpany. The princieal address of. the evening was made by ex--ecretary of the Treas.:. ury McAdoo, who not only complielented the Liberty Lean workers whom he commandeel. during four cemoaizns, but paid high tribute to ,Thvernor Strong. He said -iew York had been called on to raise the larf7est eaount of any locality beceuse of its larce e07ulation end Vas.; feanelel reseeree,i. 'ic!,(doo said that the occasion 1:Toe..:ht-, to h:is ma,-iner in which the idea or ritid the recollection of the finnc:;.n., the war was coic,:ived. he said -that it was due to the fact that at one ti:rie he read a hitory of this country very carefully. "hen.1 read of the ]ivil Thr period, parlcular]y intere'sted in the way that the war wa-:. financed, and while 1-dc not ris. to cri::icise7.:r. Chase, who .s.was Secret,try or the Treasury under ?resident Lincoln, yet I always felt that he could ha-ye 'neon nare successful in finncini7 the cause of the North, if he had made A his E.,Deal cliroct to the 1)eo2le. - "So ;'hen it a:rpeared that w,r etween ti-As country and '.;_eretan.,...ivas,ineettable, I thou-ht of uhot T had read in that 1-,isory, and we decided to co to the people to raise the that wao to ;,o.to.,,rd ecui,?pfn.t,, and maint,..irnr the armis to fjht the Kaiser. Histoey will s'io that we we,- successful, and At this time I want to pa.: a tribute to tbe small in0.7tor and to tA,-:.ren. and women who had to draw on their hard earnest sae-ins in order to leen th..k funds to their Governoeht." 9 Mr. Leffingwell 7oraised the work of governor Stronc, as well as the Gov. ::3-tron.7:in respondini; referred to the co-operation that had beei. given to him by all the volunteer workers. members of the cam:rift-tee. n. ffA-411 6 ?1.'(- 4--p61 M7nORANDUM June 13, 1919 To: Governor Str&ng From: Mr. l'herson I should like to leave with you a few suc-estions in regard to the New York situation. - In the first place, let me state that the existing Tar York was built up partly to continue SavLngs Organization in the existinT: TTar Savings Societies and similar work, which has been started _Curing the part year and a half. - It was also intended to .-leet the directions contained in a letter fro "r. Lef''ngwell received Pbout six weeks ago, which was transilitted to me by r. sailer, which directed that a nucleus of a continuous sales' force be esteblished in anticipation of a possible future plan of the Treasury Departm-nt. It should also be noted that a considerable amount of the 7ar Savings work, which has been done since the first of January, has been carried by bureaus of the Liberty Loan Committee and that with the disbanding of that organization it was necessary to place essential 'men on the 1;ar Savings pay roll. Ovbiously, we are new spending too much money in Hew York Following the remarks on 77ar Savings alone ;in .rc).2ortion to sales. of !Ar. Leffinr,well in the meeting yesterday, the 'jar Savings Conference directed itself to this problem and it became clious that there were only two ways to meet this situation, either by reducing expenses or by increasing sales. It is, of course, easy to TRFC,70 SOAO cuts in the present pay security I do not roll believe that a reduction of the workinr force will result in a proportienate aid relative increase in sales. and thus r'duce exi2,enses, but with the present In ether words, if nothing is to be available ,ar savings except the think it is very doubtful if We can ever meet the very reaonable requirement of the Treasury DepartMent to the effect that ex.,enses shculd be in a very modest ratio to soles.! It seems to me, howeV'er, that thrift anplies to the whole '7e have body of our people and not sim2ly to those of sm.all means. a very real responsibiliV toward trose peo-)le to whom we have sold Government bonds during the past two :,:ears and 7r. Leffingwell stated this morning that he considered it cart of his responsibility to .keep in touch with these people, not only as future buyers of Goveraent - 2 - securities, but also from the standpoint of protecting the interests of those who came to the aid of the Government in its time of need. - He stated this morning to a Committee of the -,Tar Savings Organization, of-which I.was a member, in a conference lasting abeut an hour, that if the organization could be Aorked out with you so as to be considered a unit, with its publisitY directed not only to thrift propaganda amongst possible 'Jar Savings Stamp buyer's, but, also, to thrift propaganda to people of larger means leading to the purchase of new Treasury securities and the purchase of outstandinp: securitiO on the market and tending also to reduce the activities of swindle-s, that he would feel that the Treasury money was being properly expended even though it was cut of proportion to the actual sale of 7:ar Savings Stamps. . I ',mow this idea has occurred to you and I think itmay. be a solution of our local oroblem if properly supplemented by a very careful re-consideration of our present salary roll and of expenditures which are in contemplation fcr the plans of this year. w One of principal reasons for leaving this memorandum with you is to call attention to the fact that if anything at all is to be done it must be 'done with enthusiasm. Otherwise, we cannot maintain any organization in New York which will live up to the traditions of Government financing under your supervision. If the organization is cut down so low as to be really insignificant it will make no impression on the situation in the Second Federal Reserve District and might'as well .be disbanded entirely. ;Te cannot hold men who have gone through the enthusiasm of liberty loan campaigns with their tradition of success unless we give them a job that they considerivorth fighting for and a job which they realize is considered vital not only by the Treasury Department but by yo U personally who are their Chief. I am willine to state without qualification that I believe there is a big job to be done in our District and that we have an organization which can do this job without undue expense.. I do not believe that they hovee had a fair chance to demonstrate a sales ability un to this time. The first. half of the year has been heavily loaded with exnensee that will not be repeated during the balance of the year and all sales activities have been restricted because of the Victory Loan. I sincerely hone that s:.me plan will be worked out which meets the necessary condition of thriftiness in cur own organization which at the sane time will not ab.,ndon the tremendously important steps in popular financing and in national thrift wnich have been started during the east et:ec years. GEA, . . NATIONAL BANK OF COMMERCE IN NEW YORK ORGANIZED 1839 CAPITAL SURPLUS AND UNDIVIDED PROFITS OVER FORTY-FOUR MILLION DOLLARS Guy EMERSON VICE PRESIDENT July 11, 1919. Lear Mr. Strong: I want to wish you a particularly happy and pleasant voyage. I hope you will make it something of a rest which you so well and richly deserve. You are going to have a most vital and interesting experience in Lurope to which you will contribute at least as much as you bring back from it. I should like to accompany this note with baskets of fruit and flowers, boxes of candy, preserved ginger, various kinds of medicines for seasickness, several cases of champagne, a number 9f serious and light books, and a few memorandums on Liberty Loan, War Savings, etc., etc., etc., but I know that you will have everything you really want, and beyond this I think I ought to do what I can to contribute toward your rest by simply giving yoU good wishes. I want to tell you again how greatly I have enjoyed the opportunity of working for you and with you during the past two years and more. I shall because ways remember it as a particularly rich and inspiring period, particularly of your leadership. I shall feel very much disappointed, however, if the years to continue the contact I come do not bring in a very natural way an opportunity to I really feel as if have had with you and the work of the Federal Reserve Bank. to knock at the door I were a graduate of that organization and should not have and stand in the anteroom in the years to come. * I can to Rudd and While you are away I will give what attention his work and shall be at his disposal whenever he calls. If anything occurs to 2 - always you thet you want done while you are on the other side you know that I am ready to help. Have a good time and come back full of health. July 17, 1919. Dear Mr. Emerson: It was most thoughtful of you to write me ouch a fine letter to read on the steamer, and it was appreciated far more than the various contributions to my nourishment which you might have sent but which T am very glad you did not. In fact, I had four baskets .of fruit, much of which I regret to say has spoiled. During the past two and a half years work we have enjoyed exI periences which have revealed many new things to all of us. regard the revelation of patriotism and enthusiasm for patriotic undertaking as the finest of all of them, wld certainly your conOtherwise I tribution was inspired by that and nothing else. do not see h mit would have been possible for you to work an average of 2 or 26 hours out of 24 and maintain your health as well. We shall noneof us regret the experience and I hope we shall iikewise never lose the friendships established in that period. Whatever you can do to assist Mr. Rudd will be deeply appreciated. With best regards and many thanks for Sincerely yours, Guy Emerson, Esq., c/o National Bank of Commerce, New York. your letter, I am, ( /(3-' 1 / (1'; ) ew York Chaieter Incorporated IC AN IN ST MITE OF BANKING (Section American BanIters Assoolttlen) 138 ;est 35th Street July 14, 1921. 5enjamin Strong, Governor, eserve '3arfk, .`f:ttaern.1 120 Broadwav, 1e7-,, York, N.Y. Dear Ir. Strong: I beliove you will be interested. to learn of the successful records made by otr student mo!ters r.;.^ora your bank in the educational courses in the year just owed. :bc'. J0121 J. GOWMI, a student in the SECOND YaR, STANDARD. COURtZ, was awarded the prize for the highest average in the course for the year. C. T:Ir. D. E. GILLIORE has satisfactorily completed the 7crk of the PR:i2ARATMY COE, aril thereby has qualified for entrance into the 3tandard Course. The follovaine were "Honor Students" in the courses 'mentioned: ROBifiT S.CA_RNANAN Risme). tary Spanish, JOHN S. CMIGHTON Credits, JOHN J. G0LD/1T 'foney ELIZIBEVR RICXS Economic lAstory, R. L. 314,ITH Credits, Reserves ani Rediscounts, RESELL TEED Mt:mew ana Banktag, WIDE VORIS Bank Boolticeeping, art. Barking, In addition, members from the FEDLT.AL RESKRtri: Bank comleted Courses listed opposite their names as follows: LIAMARET S. BLit-MI.3R Pr incipl es of :aeon° WILBUR D. BROWNE Ec ono mic History, REMY L BTPNETT SMOIW YEAR, s STANDARD COURSE, MARGUERITE BDRITIM 7.1ontyy art Banking ROBI:alIT S. c /maw E lenient ary `Spent NORMAN C. COOPM FIT1T , YEAR, STANDAn COURSE, ROBERT J. DICEY SECOID VAR, STANDARD COM .'-.71, JOHN C. DIECICERT SMOIEi YEAR, STANDARD COMM, AL31TT P. FALLON FIR :f.2 VAR, STANDARD COMA, FIRED J. FOX Bank Oroanizat ion, JOHN J. GMAT SMOLT.) YEAR, STANDARD COMSE, PHYLLIS HALL Bark Bookkeeping, CLIFFORD 11. TIAWBUNS PLR ST YEAR, STAMARD C ors a , ELIZABETH 111010.) Banking Prac t co, 14.0710raie History, REBECCA. HOLMES Pr inci p le s of EconorJ.cs, ALFRM H. FaRIPATRICK FIRST VAR, STAID.-0,D COUR.3E, ittva REIS CHARLT...,"-S Business .141.g1ish, ROT.LRKE MOND. ITAR, STANDARD COMM, st y GEORGE A. SILOINON Ec ortortd c :; MARIOIT SCIRnieg) Bank Account i RUSSET./ TTEM SECOIM Tan, STA/Ilan COTIRSE. Ver7 truly yours, (Signed) it11Iam Feick, Pr e si dent, NE71 YORK CHAPTER, A. I. B. L s:. NEW YORH CHAPTER. INC. ACKNOWLEDGED AMERICAN INSTITUTE OF BANKING 3 1922 SECTION AAIERICAN BANKERS ASSOCIATION WILLIAM FEICK, PRESIOENT 15 WEST 37 STREET WITH IRVINP NATIONAL BANK FRANK M. TOTTON, VICE-PRESIOENT WITH FIDELITY-INTERNATIONAL TRUST CO. WILLIA. .3. TELEPHONE, FIT.Roy 1544 F. PRICE, 2Nc, Vics-PAEsioswr WITH THE NATIONAL CITY BANK L. H. OHLROGGE. TREASURER WITH NATIONAL PARK BANK W. ALCORN BROWN, SECRETARY IS WEST S7TH STREET -I. M. TELLEEN. Ass, SECRETARY CHARLES H. SCHOCH, CHIEF CONSUL NEW YORK WITH IRVING NATIONAL BANK January 26, 1922. Mr. Benjamin Strong, Governor, Federal Reserve Bank, 15 Nassau St., New York, N.Y. Dear Mr. Strong: On Saturday evening, February the 18th, at 6:45 P. M., the New York Chapter of the American Institute of Banking will hold its Twenty-First Annual Banquet at the-Hotel _apimmodore. A cordial invitation is extended to you to be one of our guests of honor on this occasion. Se hope that it may be our privilege to number you among our distinguished guests and visitors and await with much interest your reply, which we trust will be a favorable one. Very sincerely, President. January ?5151, 1922. Dear Mr. Feick: You are most kind to invite me to be one of your ileets at the Annual Banquet of the American Institute of Banking, which will be held on the evening of February 18. There ie al4ays a possibility of my being unavoid- ably called out of the city, but barring that, you may count upon my being present at the dinner, and I feel wuch &inured that you should be so kind as to invite ma. Believe me, Yours sincerely, dilliam Feick, Esq., President, American Institute ol4A0cin 15 Vest 157th St., New icrk, N. Y. BS. MM February 8, asiv,. Dear Mr. Feick.: I take pleasure in sending you the names of the officers of the isderal rteeerve an f Hs* YLrK, who uave suhacrita,_ as individual Sustaining i'enbers in the Aew Ior& Chapter of the American Institute of "L.ankin6 for the year fhi s is an exoellent shoving 6.6 it represents 82% of our official staff. i still have hopes of the -list, and I an dline; a few more names to sure of receiving the tame cordial response. I an slad to have teen of some assi3tance to you and mr. Golden in this instance. Yours very truly, Wm. Feick, Esq., President, American Institute of Banking, 0/6 Irving ationaJ. 1.3&LK, Nel York, N.Y. Enc. GB.1014 NEW YORK CHAPTER. INC. AMERICAN INSTITUTE OF BANKING SEZTION AMERICAN RANKERS ASSOCIATION WILLIAM FEICK, PRESIDENT 15 WEST 37 STREET WITH IRVING NATIONAL SANK P-ANK M. TOTTON, IS VICF-PRieslosnr FIOELITY-INTERNATIONAL TRUST CO. TTer-xpifoNE, WILLIAM G. F. PRICE, 2N0 VICE-PIRESIDENT WITH THE NATIONAL CITY SANK Frrzrzoir 1544 L. H. On! LROGGE, TREASURER WITH NATIONAL FARK BANK W. ALCORN BROWN, SECRETARY IS WEST 37TH STREET J. M. TELLEEN, Ass, SecserARv CHARLES H. SCHOCH, CHIEF Cons..., NEW YORK WITH IRVING NATIONAL BANK February 179 1922. Mr. Benjamin Strong, Governor, Federal Reserve Bank of New York, 15 Nassau at., New York, N.Y. Dear Mr. Strong: We are en osing herewith a guest ticket for the speak s table to the Annual Banquet of the Loc Chapter of the American Institute of Baking tomorrow evening at 6:45 P. M. is with a great deal of I, pleasure that we anticipate your presence, and you have our assurOce that we have left no stone unturned effort to make this event highly successfu Very sincerely, President. February 17, 1922. My dear Mr. Feick: Mr. Beyer has just shown me correspondence in relation to the membership of our officers in the American Institute of Banking, and I am delighted to learn of the success of the effort to secure the Institute, which I in the their interest understand was the result of work of your correspondence with ialto some of my associates. %4 I hope that you and the other officers of the Institute the officers of our bank are busy men to a degree that few may not always be able to give the personal interest these matters which would seem to institute ourselves which has a be required. and the necessary time to membership of no less officers and employes who and people realize, they We Pre in a eay running an and you will be interested to learn that there is a percentage of our than three constant thousand people, growth in the are seeking further knowledge problems with which they deal, through the facilities of the American Banking and the extension courees of With kindest the various universities in this regards, believe me, Yours very truly, Benj. Strong, Governor. William Feick, Esq., President, American Institute of Banking, 15 Test 37th St., New York, N. Y. BS.MW eL realize thPt of the Institute of city. 1.' NEW YORK CHAPTER. INC. AMERICAN INSTITUTE OF BANKING SECTION AMERICAN BANKERS ASSOCIATION WILLIAM FEICK, PRESIDENT 15 WEST 37 STREET WITH IRVING NATIONAL BANK FRANK M. TOTTON, 1ST VICE-PRESIDENT WITH FIDELITV-INTERNATIONAL TRUST CO. NEW YORK WITH THE NATIONAL CITY BANK WITH NATIONAL PARK BANK W. TIMICI.HONE, FITZROY 1544 WILLIAM G. F. PRICE, 2ND VICE-PRESIOENT L. H. OHLROGGE, TREASURER ALCORN BROWN, SecRerAF, IS WEST 37TH STREET M. TELLEEN. ASS'T SECRETARY CHARLES H. SCHOCH, CHIEF CONSUL WITH IRVING NATIONAL BANK February 20, 1922. Mr. Benjamin Strong, Governor, Federal Reserve Bank of New York, 15 Nassau St., New York, N.Y. My dear Mr. Strong: Your very interesting letter of the 17th instant becomes one of the prize possessions of the Local Chapter of the American Institute of Banking. We were especially delighted to learn from Mr. Beyer of the substantial interest on the part of the executive staff of the Federal Reserve Bank shown by the sustaining membership campaign. Mr. Beyer reported that he had no difficulty whatsoever and that everyone acknowledged the fine work that our organization is doing. This establishes a remarkable example for the banks of the city, and permit me to express the hearty appreciation of the Executive Committee of the New York Chapter and to tell you how much your letter is prized. With kindest regards. Very sincerely, President. Cr ,A1'111 .7h1 2 tit 1,J1 Aleee/-) a December 1, 1914 Dear Ben; I wasn't able to attend the prosperity luncheon. Yesterday I ren.d your speech very carefully. admirable speech. read it. I suppose you wrote it in advance and If you spoke it as it is printed, you surely are a born orator. It certainly is a simple, lucid, straight-forward statement. Faithfully yours, Benjamin Strong, Jr., Esq., c/o Federal Reserve Bank, 62 Cedar Street, City. It is an r("14411 gi,1151 t Deoember 2nd, 1914. Dear Charlie: Thanks for your note about the speech. followed the advice piven in the Evening Post by your old friend George Perkins - wrote it first, committed it to memory and them read it. Clad you liked it. Very truly yours, Charles D. Wkrten, 'sq., The First MIMI Bank, 2 Wall 'treet, New York City. BSJr/VOM -3 40:o I/to-tot.. 'Ibuf dant prk levyk) fttot-144 Piftpc,pitif 11),;pra,t (it Zwtr 441 e e- ilA , /tat (6". fet/4410 M tth d)ama44.) 6144 /1/141-%- a 41-ee ./Ptorgiucat" te, ;_eg(t-A,ZIL It tirtvt- ett- a80r4:--T A 0 eiwYn. XAM,t) KNICKERBOCKEk CLUB ALi4i4kiA-d 40-Li a4J vfeew 4' d, 1/L47 /6) _ ti44.--k, (04,) Alttt, 14,-.4A. /is IkEr) *kat X44) A (11414-4( ,t,u y4441i t lei/f /0 /44w aa'A - selfit441) &134_..v) 44,4,44A2 fr-ai/i/tat r kt- ilt 44-1 /4444 -6- 8 fht,aZ /44,V 4#41406e_ KNICKERBOCKER CLUB tie a4Lii t1711/(L AAt 40t h:/tA2 en, , frte, i4d* 11, iitt &ot,,.! Y&44t 67t' 01074,-- Ai( 4'4 pm( ev&:: 1LN% ra4u.e._ 01/k._ 1142_ Avurpt-e /4t-f-tc kw i; 4e/g, 4r4.1,t ( I p'4;t- at/ pre-) Asco Li-v.. r_ th-t-ok.) free kg,) att kte 09 4 4. 144/1 0 (1414,z-6-45 14)4,) 74o Act 7tz 41 /14,,;* el-d4 4-,44 " A ffl/t4._ 7i4.-tAati; 074,c,a a5ffav fiA4-i 44-c Afrk. v7440 (wiow na-6,fr) 4t4e-4 /tee-Pdkr- i4,d I/tote ivx, 44(47 0,t& ile-4r Tot. tz 7444. Yaz4i 9 orP.44,4:1 it; /(440- fri x f/1"14)v 1:1114- /4.°147 r 171 (144entt4k-Al /6441- te 1- 71,;(0,,) 6-4-14,0,91) aates Park, Colo., July 19, 1916. Charles D. Norton, Pirat ilational Bank, New York City. Dear Charlie: Your letter ago and gave me a of the 10th reached me a couple great of may induce you to write deal of pleasure. A prompt days reply joy. regularly and letters are my great had a hot, tiring that I was about ten day trip to --- the result in bed theFa, up here by automobile and have about but d\ sek ago came definitely -- possibly all winter. decided to stay Inthe air in a pocket right under are 75p3 feet in towers about little feet Long leak, which 7000 hig surrounded by peaks avera or than\ Lsteq4alhafact we are with a good deal of snow fr It is a 1,2,0U-tC 14,000 ft., I have ever visited an a i are verj,beautiful a place as I have a little 4pomfortably housed. which is a very sma om c ttage 100/yards from the Lewiston you will observe, ha ry o*fertable hotel, and, as anaoffice. .7derfirerted one room into I am delight Curtis wrote me about Harry ail and it will Emery. Jim and a eat satia et ,Vto his friends. be good for him Po- blaayqu don't realize how closely I associat4rwith_aY-Tatr 600d have been years. Hplgrows on one friend Delano for the past two only immensely ter. veryltondsplendid but a great and I have become not He 4 a of him, he is a bpod relative of back-log in admiwer of his characthe Board. cover it until recently. mine, although we didIncidentally, ae both descend from not disElder John Steeng, who landed in this country a certain the good ship "Yary in 1630 on and john". I am maeh amused Xnox and the revival by what you Denve-raavel a lone talk with Sir of interest iisay in regard to Senator Chinese Charles Addle in regardfinance. I had when in London and at that the re-entry of the United time he expressed to this metter wao really necessary to States in the group the view that solve some of the arrangement. Chinese finance. I suspect difficulties ing to trust that the °hinge. are more of disinterested "Uncle aam" than any willof their C.D.B. #2. other creditors and they certainly must realize that just now we have the fattest purSe. Looking down on political matter from this glorious altitude, I am beginning to think that unless important matters develop, some of your stoical hide-bound ":;epublicans may have a disappointment in store for you next Dovem- ber, but I must qualify this by stating also that my judgment in: political matters is rotten. That is a good story about Cowdin. I know him and the otherwhat I would expect one of that blood..-td s and he did T wish I could send you irriteresti Oews there is absolutely none here. I-gm not permitted to walk or exercise in any way,_hut am allowed /to do a little quiet work which w -'radual reased. as the Doctor finds me i oving. v -thorough examination he made of me esulted ,a pretty conservative report, which made me s r for a *le, but was not necessarily discourag Write me an a to you Charlie and some _40.:76 me the news. of them, .4.ncerely yours, ay best itarC 4AtA (zol(47(A4a,,,.t 4,4,ie,itt DOSOR1S LANE GLEN COVE AQ44_ tt 447 4\ #7"-'"? Afcc: frtt /63 04 0 44,4 .t4 bat 4,0 r- /Ptie cute,4e._ ,f L_ 46- ,fictk ftaf. efIr alu("1"6°L dem hi, iovAziie,s1 44 . -tit //tea 47--dai,g,4. fr--/ 1144- t 14,7123, ktJ I-Ate ti771_44At 4-14 iffre- /tea. /at- 4kz dg- 41-44.-44- k *s Ara /11" )44. if, 4,4 7ri,a,%-- .442, frt_ arm. 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Ca10 a-/tt 4ki ti el4U/Aa.Lfr /44-a-,22- r ig,a( ,14 6--14c tA,.4 C 4ark44,4- kta Adi,t,,,u472 Ite/tt-, l';,1)41 Estes Park, '.;010., September 9th, 116# Dear Charlie: Your note of the 6th is just received( nd I hope you will let me hear from you when you have lei"sur 0 scratch off a letter,. Do not however, lot that Iii_eaR-1 o your visit could share with Fred Delano. You have a tr/ett,t- hich I wis more I see of your with you, for am frank to api that dmiration and respect I good friend ani my cousin, the on to that job in --shington have for him. If and if I can only girt beck tor job, I have hopes that the 'next few years will seeka lot acco6 lisheo in Zederal Reserve mailers t'--;=3 I do not mean to t of enjoyment. that will afford us 13-60-ta A imply tdat he two yea handi* on uny of the others and I want to see the 1,1/ are the only Grecs thatcan do it, but we have job finish.a:-This leads me to make a few remarks in pas'Ang about I am graduiily coming to regard it as the, cit.. adel of :reaction. If I could have you out here a few days, would tell you the whole story of the last two years' work, which "Fort Sherman". I never have done, and lJ), out for your :c)ntempilation, tYle pro gram of further development of the new Federal Reserve System which, I believe, would convince you thai it is worth while to boost rather than knock it. Of eourse, I realize that we are To C. D. Norton, Esq. Sept. 9, 1916. charged with many sins which really belong in the Comptroller's office, but I do not think that you and your associates make that mistake, as many bankers do. What we are hoping for is further legieletion in the next few years that will put one whole department of supervision directly under the Federal Reserve Banks and, in turn, under the Federal Reserve Board, and in addition to thateel comprehensive 1 revision of our currency laws that will get ridj f old inherited troubles that now cause difficulty now an-dthem, It is going to come just as sure as rate and whenetheeevork is a done, while you may not recognize the Fedee1( Reser, that we have at last N ,;()1: a de6i, Act, you All recognize r ency and banking system. t Hughes, first let me eay that my judgement Jen/politica tette is not worth a rap but I have talked with of the yie ple one meets in a hotel of this Answering yeuf--11 kind, ren7 m4dgen teen' 'ne following impressions: There is a decie feeling die diesatiefactien in Many sections of the Mid nd in the South as well, over Wilson's administration and this ilhve...be'et'Me stronger sincehis action in connection with the threatened strike, doubt. Of that 1 do not believe there is much Most people charge him with weakness and inconsistency in Mexico and various other sine. On the other hand, I'cannot help gaining the impression that the Hughes campaign so far is purely negative. People instinctively feel a little disappoint. went that he is undulging in so much tirade and invective withoWt offering construclivo suggestiens and saying what he would do himself. This is one of the necessary misfortunes of a candidate To . Norton, Esq. C. Sept. 9, 1916. for office attacking a candidate for reelection. He has got to pull his record to pieces. On the whole, I gain some impression that people may be forced to the attitude of voting for the lesser evil rather than for a positively good cendidate. Tlut this ceuld be radically changed if the latter part of Hughes campaign developed a really constructive and statesmanlike e44ration of his policy and in a way to satisfy the country. I I My older son has just returnaCreWm-e lifornia and he tells meethat, every one there ie bit --",ggainet Vi4.so,n, but that \e/ is natural in view of the many. A peculiar to that state. Colorado is eplit by doubtful as to the ou c!9elle-4 Chances are that t1u4 es will onal row vhich makes it very ional election. I think the th state, judging from what little goseip I hea onally, feel, hat Wilson is suffering from the 7 experien e which oetakes every reformer in politics who is elected to o I ce. OS/starts by attacking the bosses and winds up ee by being a greater boes than any. . That was Hughes record as gov- ernor, Roosevelt's, as governor and president and Wilson's record as governor and presidentofid I surmise that we will heve the same experience if Hughes is elected as president as we had when he was elected governor. Once more, the above is the impreseion of some one who has no political judgement whatever. My bast regards to you, and to Fred Delano if you get this letter before he leaves. Sincerely yours, Charles D. Norton, Esq.., 2 Wall Street, New York City. 6 AP-rxiti r- 1/ A7z,zwi,,,,4 JAN1 5 0,/ -01 January 9th, 1917. Dear Ben: From old Fort Sherman, or as you call it, the Citadel of Reaction, I send you my very best wishes for the It was pleasant to have ycur Christmas greetings. New Year. There has been so much doing here lately in your line that I don't know where to begin. One by one your associates have fallen by the wayside, with more or less serious ill- nesses, but I don't think that can really account for the various kinds of brainstorms tholA have been going on in Washington. Fred Delano spent two or three days with me at New Year's, with learn many things of his wife, and I had a good chance to intense interest to me about the work- ings of our new system. I can imagine that it makes you want to hire about four stenographers and I hope you are just smart enough to abstain from reading any financial or any other kind of newspapers, or thinking too much about the situation, that being the short out to your return, which we all keenly wish for. I have it up my sleeve to sit down and write you a long-hand letter which would be a real reply to your last de- Mr. B. S. Jr. #2. lightful one, which we read several times out at Jim Curtis' house. Benjamin Strong, Jr., Esq. Estes Park, Colo. Denver, Colorado, January 15, 1917. Dear Charlie: aauary 9th that I really thought When I saw your letter Fort Sherman must have fallen, for I b ve you ha wed. me a letter for no less than three or four month of the real r ion in New York from those brain storms? like to get t point of view f the react rie . forcefully expressed by o Why don't you write me the accous t. Fred Delano is a de i He does no k brighter \\....., 'whenever he does things dope right from t1T,21d for write me very often, but feel he sends me the real a have needed at least four stenographers For the last three as I spent the holida untains with my youngsters and returned to find that the h en, more Or less, as a result of some \ t. brain storms yhu of however - I have to read the financial papers, keep a little normal atmosphere in my top story, or I would stoma be having b lightful vie self. The last few days I have enjoyed a de- from George ;loberts and now I am awaiting word from Jim Curtis as t possibility of his getting out here. I am getting along after a fashion, have put on quite a bit of weight for me amd my doctor now wants me to tackle golf as soon as the weather permits. in the meantime I may take a few weeks in .Arizona Why don't you come out some day soon; with or without James Freeman At any rate write me as you promise. Very sincerely yours, C1441afit-Z4-4P09.4*00'- 2 7;9.11 St., New York City. Curtis? rt. December 1, 1919. Dear Charlie: I have read the little pamphlet enclosed with your note of November 12 after unavoidable delay and an returning it herewith. It contains a nunber of interesting thoughts but I fear must be classed with a great many other plans all of which contain one outstanding characteristic which would be fatal to their success and I fear detrimental to the interests 3f this country. These plans to which I refer, including the enclosed, contemplate the creation either of an international exchange currency or an international credit instrument which may be used in purchasing goods. Under present conditions they would all float to thi13 country causing either a great in- flation to our credit or a drain upon our gold reserves such as is not to be thought of. Furthermore, in the case of this plan currency issued by the central banks of the world would be redeenable out of a connon fund largely furnished by this country, and who shall say how much currency shall be issued by hard-pressed nations; in other words, who is to resist the pressure of converting this world currency into a vast instrament of inflation. I an sure that you will agree with me that such things are L be encouraged. Sincerely years, Norton Esq., First Secw41*-44e*Aany, 2 all Street, Charles D New York, E. Y. Bg:TicC Enc. (1) 4Xild fe if 94r ?lay 10th, 1915. Dear Sir: Referring to your favor of the 5th inst. regarding the key to the safe placed at the disposal of the Gold Fund Committee by,the .qywpqg.._ Rouse, I beg to advise that the key held by me was delivered to rir. iggin. Very truly yours, J. F. Ravenaty, neg., Assistant Cashier, National Baak of Commerce, New York City. VCM :fNq Ay L 1 igl5NATIONAL BANK OF COMMERCE IN NEW YORK FEDERAL ftEettiVE tiAK 0 May 5, 1915. 4* Mr. Benjamin Strong Jr., Governor, Federal Reserve Bank, Ai New York City. -144 7 Dear Yr. Strong:- 4 e? 494 As you are probably aware, the four London banks have confirmed to the Gold Fund Co,p1mAlAwthat the cable codes sent them 1-61TIMem Wi; have been cancelled. We have accordingly marked our copies of the codes and have filed them with the other papers of the committee. We have no further use for the safe placed at our disposal by the Clearing House and I have obtained the keys held by Messrs. Wiggin, Woodward and Alexander. my record shows that you also hold one of the keys - key number 2. I would be pleased to call for it at your convenience, or you may send it to me if you prefer. '1'51 NO- mire 314 h, 1924. Ow A My dear Mr. Rovensky: Thank you very much for your note of the 19th and the proposed amendment to the Federal Reserve Act, copy of ehich you sand me. Fven though you and your aesocletes should decide to propose some legislation of the chsrecter indicated, I think the text *Lich you send me ie telly defective in one or two respects snyoay. express The last peragraps doee not method of control of the oeerstione of the Federal EesErve Banks v,hich is practizable. Se fix our discount rates et such levels from time to time as se believe are adapted to the situation end as to the member banks borrowinge The rate mast be our general reliancia, eepecielly in this city, in from us. controlling the extent to which member banks do borrow from us. market operations are not controlled ss much by rites ss they sie by our own decision as to whether we shall buy or sell. be those at which we can buy or can sell st the moment. rates fixed must Naturally, Lt whet really controls ie not a rte but an affirmetive policy in conducting a voluntary operation as distineuished from a more involuntary operation haen member benke directly borrow So I think the language is really defective and inappliceble to the from us. facts. A second very serious objection lies in the suggestion that purchases and sales of Government securities in the open market shall be conducted by the Federal Reserve Banks as the aeents of the shell accrue to the Government. conducted for our own account end Government, and that profits and losses Our open market operations are and must be not in any sense ez agents of the Government. the Merch Cl, 1924 Mr. John F. Reveneky e net erofite of the Feder) Reserve Fenke go to the C=evernment unyrey ene $!en there -re no profite to effect leei they come out cf our eurrlue und the 'orernmeat zeta no fienchiec :al. account would be fttal te To heve these operations coneucted for Gcvernment thP *hole structure of the Federel Reeerve System. I shall not go into these in detail 1r. thie letter, but I think you may accept this At some cenveelent opportunity I rill dogmatic statement es beine wellfounded. be glad to elaborate it when I Pee you. I can only repeat what es to the Federal Reserve Standard Price Index. I eteted to you the other day: Thet the Federal 1,eserye Ranks end +he Fedeeel Beeerve Board do consult V.IiCUF price indices ee eel/ as charts consumption, distribution, and 9 grest ere production, of ether emiler guider to judgment. variety Put were the Federal Reserve Syetem to accept e mandete ef the chrrecter ehic:1 le oropoeed amendment, I am perfectly certain that it will either at implied by thie once or in course of time come to be interereted not as but es a mendate to fie the general price level. vritten on this subjeo; but all that It be said briefly enough. be handed to any seems necessary referee or judge between policy to eay in this letter can that any interpreted by the elnee of the general unenlightened public 9 credit 6/1C/1 mendete ehould Even, as you eontend, should it not committee or group of men. and nothing else, and then the Federal Re puide to Of course, volumes could be Personally, I do not think be a mandate it would nevertheleee be 9 country as exactly that rye System would at once occupy In the the unfortunete position of being that eectton of the community which is interested in low prices and benefitted by low melees, namely, the wage earner and consumene elees, on the one hencil and the other section of the community which is tnterested in higher or advancing prices, namely, the worse tnan that because the great mese producer and trader. It would oven be neonle in this country wholly fel/ to grasp the difference between the general price level and those particular prices which affect their own welfare and happiness. Had any such understanding of the March 21, 1924. Mr. John E. Bovensky 3 efederal Deserve System prevailed last year we would have witnessed the ridiculous ituation of large clace of the community of wheat growers making demands upon the Federal Reserve System to put up the price of of the community would wheat, while another be demanding that we 'educe the price of exeotly what es might expect because today the wheat farmer has sugar. that Lhe Federal heserve System did in fact reduce and there are agttetore in the 3oute large class This is oeen led to believe the market price of his product, who are still reiterating that we reduced the price of cotton. But it ie my notion, in the absence of the operation of tile automatic eeenletion of prices Which prevailed before the war been teet it iE clumsy though it may have in fact necessery that regulation of credit be the adoption cf noliciee based upon a thorough investigation t;reatei: veriety unaertaken by and study of a muce of influences end standards than the fairly simple ones of reserve percentage, foreign exchenge rates, end interest rates which prevailed berore the war. But credit is only one of a large number of influences which operate upon the senerel nrice level and the Federal Reeerve System or any panic of issue can accept reeponeibility only for the influence which credit alone exercises upon changes in. prices and if it is assumed not by this legislation but by the possibility of misunderstanding of this lepisietion the Federel that credit alone 'eeserve Syetem will be in serious believe that everything that makes prices then indeed trouble. can be done is being done by the federal Reserve Syntem towerds a proper regulation of credit and that the policies which are edonted for thet purpose are arrived at after the fullest possible coneideretion not only of prices but of all of the other factors whica make up the composite picture of the situation by- which tae Federal Reserve Banks must be guided. that the country neene is some eimple education which will not be misleading, as I believe this proposal will certainly be. 4 Mr. John . Fovenzky March 21, 1924. I am very grateful indeed to you for giving me the opportunity to con- sider this matter. I hope it will not be presse6. lours very truly, 3trong, Governor. Mr. Jchr E. Fpventay, W(71 Freaident, i.k>tional Bank of Commerce, Hsw York, N. BS.Mt 440k- 10.. 41(21. r U:7 (2,144i 4,ke 4441 /9;! ,et 11 t- June 15, 1921. PERSONAL My dear Yr. Shbin: We have only within the last fey, weeks been able to conclude the final accounting of the expenses of the various Liberty loans, and determine to what extent, if Lay, expenditures made by the organization could not be reimbursed by the Treasury under existing la76, or rules of the Department. re find that the total amount of soon items that cannot be reimbursed i6 4,67,5.97. Of this sum, the Federal Fes-erg-a Bank is able to absorb $2,229.74. The rem.Lindr, $30t.3, I have paid personally.; Tha Liberty Loan ComAttee paased a resulution, agreeing personally to assume certain charjes, up to a limited amount, which at.: I recall was $1,000. If the members of the corittee ore to pay. their respective shares of this sum, the amount of each committeeman's proportion will be $23.55. Rad these operations been ounducted since the passage of the Volstead Aot, it would not have been noceosary to ask the committee to make any contribu- tion. Yours very truly, Ghsrles H. ELbic, Esz., roadway, Ae/ York, N. Y. BS :M Co CI,LA RLE S ILSABINONTE 13.1:7NDRED FORTY- 1312CIA_DWAY N vv June 15, 1921. 'JUN 1 6 1921 Benjamin Strong, Esq., c/c Federal Reserve Bank, 15 Nassau Street, New York City. Dear Mr. Strong: Mr. Sabin has asked me to forward you the enclosed check for $23.55, his proportion of the $1,000. to cover certain charges against the Liberty Loan Committee, as requested in your letter of June 13th. Yours very truly, Enclosure June 18, 1921. My dear Mr. Sabin: 1 thank you for the remittance of $23.55 encloeed in your favor of June 1.5. Yours very truly, Charles Sabin, Es., 140 Broadway, New York,N. Y. ' AL RESERVE BANK IF NEW YORK - NovembrJr 26, 1916. . Snot 'Raiding,Zsq., k, President, iirst Iational Bank, .Dear Jr. claidiass It Is generally admitted that it would be wise for the 31ednral serve balika to mobilise ao large an aunt of gold co possible duriag this period when 30 000h in being' imported. Unfortunately, the michinery of the Federal Reserve System pornIts cold noculolation only to a limited extent, but, if federal ronerve notes could be oeunte0 an reserve by nationalbanirs and by 1Ter York 'tAte banks, an. Is done in somerothor States, it would be es.* for us to purohaae gold with Federal reeerve noton. Whether such legislatien will be enacted this winter In, of course, unoc?rtain ape, lo 1 WO writiNg to aik your *pinion al to shethor the plan sublitted herewith would sews to you feasible uni practioal. 2ho plan, briefly, in to ask member banks, both in Kew York Jity and outside, to sort out of the cash reoeived over the counter 411 gold certificates, not paying out any suoh certifioates but forwarding them in Such quantities as each bank deems advisable to the Federal Reserve 3ttsk.of iVm York, Wk... ing in return from us iederal reserve notes, thin bank paying the oxoSenos of transportation both waya, This would withdrew from the °ash in cireulation a certain al/mint of i3old cortificatel sobstituting therefor in oirculation Federal reserve notes, which, no far as the public Is concerned, vould.be just * as motisfaetory. DERAL RESERVE BANK OF NEW YORK It is appreciated, of course, that at presot Federal reserve notes are not reserve for the banks and that !somber banIzs x7osu1d, therefore, pay out the Federal reserve notes over the counter for pay-rolls ad in other revs, but It is believed that a larRe portion of the Federal reserve note o would remain out in oirculation. This plan necessitates a certain amount of unselfish labor and action on the part of the member banks, the regard being, however, the Unow1ed3e that there would be thee secured as large an aocuAulation of gold the hands of the redeml reserve bank an is possible under our .present maehiaery. 7a7 I ask that you will give me your personal opinion as to whether this plan can bp carried cat, to a certain extent at least, .nd whether your good institution would cooperate in this eovement, if it is though advisable to ottaTt It, 4 it being underotood that the Vederal reserve bank or you could tv:ithdraw from the arrangement at any time it was thought by either party 17130 to do so and it being further understood that thisils an experimant. Thanking von leo:avarice for your consideration of the matter, and Ath Rind regards, I Very truly yours, Deputy Governor. ft, QTr -,1Katiciatai Path. Nauk Art NE.11X December 13th, 1913. Strong, Jr., Mt. Benjamin c/o Bankers Trust Company, New York City. Dear Ur. Strong: The low point This, however, in our reserve in 1907 was 18.77.. was when we were paying our clearing debits in Clearing House certificates. Trusting this information will be sufficient your purpose, believe me, for , ) 3 if HAR RIM W. HARRIMAN PRESIDENT ORLANDO H. HARRIMAN Assr.cAsHIEF WILLIAM A. BURKE r AN L.KENNELLY ASST. CASHIER VICE PRESIDENT FREDERICK PHILLIPS MORTON WADDELL FIFTH AVENLJ.ErD,4IHSTREET VICE PRESIDENT ASST CASHIER WILLIAM B. SHEPPARD THOMAS B. CLARKE,JR. ASST. CASHIER VICE PRESIDENT FREDERIC S BOWEN JOHN A: NOBLE ASST CASHIER VICE PRESIDENT & CASHIER September 19,1917. CABLE: HARRIBANK FILINCi DEM jr. Benjamin Strong, Governor, p ;4)- Federal Reserve Bank, New York. lap 11/1?Pli- Dear Sir:- yeZago Some three or more when the Federal Re- serve System went into effect, I took length in relation to the occasion to write you at establishment of a registry department for commercial paper, and you replied. that there was so much to \ do in other directions, that although the suggestion was a good one, the bank had to defer consideration at that time. It occurs to me now, in connection with the conditions that surround us and the test to which the Federal Reserve 2ystem is to be put, that with very little effort a start could be made in this field which would result in assistance to all members of Federal Reserve System in the way of guiding the them in the purchasing and discounting of paper. It would seem to be just now vitally important and more necessary at this time than ever, considering the period of inflated prices we have recently passed through, that a careful scrutiny and supervision of all paper presented to the Federal Reserve Bank for rediscount be in order. I can see no thorough way to do this except AAL BANK - 2 - Mr. Benjamin Strong, by the establishment of a tabulating and registering system to protect the various banks in their purchase of commercial paper and which would incidentally, of course, serve the Federal Reserve Bank in the re- There would than be discounting for the bank members of such paper. the obligation of all mercantile upon the houses and corporations placing paper market, to furnish to the Federal Reserve Bank statements of their condition, outlining especially the cost of their merchandise, not to speak of the cost in these expensive times, of their new equipment, plants etc. etc. If many of these heavy borrowers have been buying merchandise and investing at high prices and the banks have afforded the credit for such purchases, a hazardous condition exists and a questionable return of the borrowed money will ensue unless there is proper supervision. A safeguard of this kind by establishing a department for the protection of all bank investors is in order in the a stock registration is recorded. the very same way that Moreover, it gives all members of Federal Reserve System, by application to the Federal Reserve Bank for information, an intelligent idea of the amount of paper and besides, a definite favorable or unfavorable Federal Reserve Board as to whether the paper stand by the local under consideratieh is passable after such investment, should it be presented There is protection outstanding, for rediscount. in maintaining a bureau of this kind,not etIAL BANK 3 Mr. Benjamin strong. only for the members of the Association, but for the Federal Reserve Board itself. I have today forwarded a copy of this letter to the Comptroller of the Currency. Respectfully submitted. President. September 20th, 1917. oear Sir: Your favor of the 19th inst., is just received. I think you underetend that the plan for registered comerciaiTaper to which you refer is one with which I have always been heartily in accord, in fact, the first business of that kind ever done in this city was done by the Bankers Trust Company when I was president. It hardly seems possible' for this bank itself to undertake the work for a.number of practical reasons: possibility of our regisfration being than it really meant. tion by reason of the One is that there is a misunderstood as implying Another is that the pressure on our more organiza- hardling.of the government leans makes it impos- sible for us to find office room, or a sufficient number of officers and clerks to handle the work that is now pressing. Our force has exnanded from 100 men and women to about 600 in a few months. Would it not be feasible for some of the large trust compa- nies to develop this matter on their on account and without any -ere from us than, if you please, some sort of cooperation or approval which would be effective in making paper se registered eligitle at this bank without the necessity for filing a statement direct* would, of course, expect to get statements from the' registrars. I This is only a suggestion and is made to evidence our desire to cooperate. Yours very truly, Governor. Jose-ch W. Harriman, Esq., President, Harriman National Bank,- Fifth Nvenue and 44th Street, New York' City. BS/VW