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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

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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

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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







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10..

41(21.
r U:7

(2,144i 4,ke 4441

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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

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