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9049

BION H. BARNETT
GH.einmes OF THE BOARD

WILLIAM R. McQUAID, P.sS",sN'r
ARTHUR G. GUMMER, VICE Pssszmrsr
CAMILLUS S. I.ENGLE. Vlaw PRESIDENT
DONALD M. BARNETT. V/OE PszsmEwr
FRANK W. NORRIS. VIGE PlissrpErrr
GEORGE AAURK .VICE Pseasnasarr CASRIER
W. B. PREVATT,Assr.GSHIER Goxr.r.nr.Enst
L.A. PERKINS. JR Assr. C,.SRIRII
P. L. WALTON. Ass, CASHIER

THE BARNETT NATIONAL BANK
OF JACKSONVILLE
DESIGNATED DEPOSITARY OF THE UNITED STATES

JACKSONVILLE ,FLORIDA

E. G. FLASKELL. ASST. CARRIER
R. D. BALDWIN. ASST. CASHIER

March 4,

G. P. KENDALL,Vron Pa,ssmmyr & TRUST OFFICER

1927.

..//
V

OZN1/4°.

Hon. Benjamin Strong, Governor,
Federal Aeserve Bank of New York,
33 Liberty St.,
New York City.
Dear Mr. Strong:

I am sending you, by separate post, a book
which our bank has gotten out in commemoration of its first
fifty years.
I hope you may find something of interest
in it.

The State is still young, and small in population, but we are growing rapidly.
It is hard to realize that I have been in
this bank for fifty years, and that it must have been fifteen
years since we had our last game of golf together.
I hope
your game has improved; mine hasn't.
With personal regards, I remain
Sincerely yours,

1\A V1/14-

BHB:T




,01
1,

f

March 13, 1927.

Dear Mr. Barnett:

It was a great pleasure indeed to have your note of
March 4 forwarded to me here from my office, as I am just now
convalescing from a severe attack of pneumonia which laid me
lot last Septem-ver.

It must be at least fifteen years since
Since then I fear we have

we have had the pleasure of meeting.

both graduated

into the senior class

of fairly

old men.

It is a pleasure to look through the interesting volume
you sent me and to recognize in it the evidences of a bank of a
type that we so greatly need in this country, with a real trqdition, one associated with a family of high ideals, and with a
consistent and a conservative success.

It would give me a great deal of pleasure indeed if
I could see you when you are next in New York, if I have the

good fortune

to be there.

Could you charge yoyr mind with drop-

ping me a line some time in advance of coming?
me the opportunity to make you acquainted

It will afford

with my associates, to

see something of what I believe is a great institution,
would be the particular pleasure for me, to have a good
with you.

9.th kindest wishes, believe me,
Sincerely yours,

Mr. Bion H. Barnett,
Chairm,,n, Barnett National Bank,
Jacksonville, Ilerida.



and what
visit

9049

BION H. BARNETT
CHAIRMAN OP THE BOARD

WILLIAM R. McQUAID. PRESIDENT
ARTHUR G. GUMMER, VICE PREsIo.earr

THE BARNETT NATIONAL BANK
F JACKSONVILLE

CAMILLUS S. I.ENGLE.Vuar PRESIDENT
DONALD M. BARNETT. VICE PRES TDENT
FRANK W NORRIS. VICE PREs 'DENT

DESIGNATED DEPOSITARY OF THE UNITED STATES

GEORGE A.,KIRK Nloa PRasnmsprr & CASHIER
W. B. PREVATT. ASST. Cd-SH SEE. & COMPTROLLER
L. A . PERKINS. JR Ass, GASflEH
P. L. WALTON, Ass, CASHIER

JACKSONVILLE ,FLORIDA

E. G. FLASKELL. Ass, GASH, ER
R. D. BALDWIN, Ass-r Gns Hz nz.e

G. P. KENDALL,VroE P.Rrennrarr & TRUST OPP/CER

Benjamin Strong,
Stuyvesant Road,
Biltmore, N. C.

March

15, 1927.

Esq.,

Dear Mr. Strong:
I am very sorry to hear that you are ju t recovering
from a severe attack of pneumonia, and hope you will 6on be perfectly
well again.

While I fear you are right that I Lelong to the senior
class of fairly old men, yet I don't like to adz', it, and find that by
spending about four months here every Winter an taking eight months
vacation I am still able to play my thirty-si holes of golf a day without getting unduly tired.
;

I have never called on you in New York, because I
thought you were too busy a man to be int rrupted, but I certainly will
take advantage of your kind invitation
d drop you a line in advance
of my next visit to New York, and hope
may have the opportunity of
meeting you again, and seeing the wor ngs of your great institution.
With kindest regard

remain

Since ely yours,

wk4
BHB:T




LfeAzdv
'

9049

B/ON H. BARNETT
GRAIRMAN OP THE BoAnn
WILLIAM R. McCATAID, Pn...Esrmt.rr
ARTHUR G. GUMMER VICE PRESIDE:NT
CAMILLUS S. LENGLE. Vac. PRESIDENT
C. DONALD M. BARNETT. VD... PRESTDIDTf

THE BARNETT NATIONAL BANK
OF JACKSONVILLE
DESIGNATED DEPOSITARY OF THE UNITED STATES

FRANK W. NORRIS. Vron PREsrnErrr
GEORGE A.KIRK NICE PRESIDENT 84 Cwsprxer..
W. B. PREVATT. Ass., GASHIEH
GOMPT-RD/J-ZR
LA. PERKINS. JR ,Ass-r. GAS/HER
P L. WALTON. ASST. CASHIER
E. G. FLASKELL ASST. CASHIER

R. ',BALDWIN, Ass, Gss
G. P KENDALL.W.oz P.u,norarr




JACKSONVILLE,FLORIDA

April 4,

1927.

.TRusT OvP/ogr.:

Benjamin Strong, Esq.,
Federal Reserve Bank,
New York city.
Dear Mr. Strong:
I have noticed in 'tee papers that you are
expected to return from your long acation very shortly, which
I hope it true as an enforced vac tion is not a pleasant one.
I am sailing 0 the Berengaria on the night
of the
and will be in N
yok on that day. If it All
be convenient for you to see le I will call at any time you
may suggest, except lunch t' e, as I am lunching with Mr.Prosser
at the, Bankers Trust.
AnDAVEA,,,R.0,,KKINTIIII4ARRE

With pers

nal

regards, T remain

Very truly yours,

I(

BH13:T

i/V144/6

i,/1/141AK




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27 1927
k.:75,7-77., 11,'1,11F

$ ,.. Na' Y:.!

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1'1-4

Hotel drighton,
.,tlantic City, N. J.,
April 12, 1927.

Dear Mr. Barnett:
four kind note of April 4 has been forwarded to
inc here. I m planning to be in New York at the time you

mention, and will be very glad indeed to see you if you
are able to stop at the bank.
4ith kindest regards, believe me,
Very sincerely yours,

Mr. Mon H. 3arnett,
Chairman, The 'Barnett National 3arik,
Jacksonville, ?lorida.







I

ESTABLISHED ISSO.

THE AMERICAN NATIONAL BANK OF ATLANTA
CAPITAL AND SURPLUS $ L000,000.
WILLIAM L. PEEL, PRESIDENT.
ROBT. P. MA DDOX,vicE PRES.

TH OS.J.PEEPLES,cAsHi

JAS.P.WIN DSOR,AssTcASHIER.
JAS F. ALEXANDER,Ass-r.cAsHIER.

September 15,1914

Mr. Banismin Stroeg, Jr.,
York City.

I
ATLAitifirA.,

SEP 241914

Dear Sir:As chairman of a special cuaalttee appointed by the Atlanta Chamber

of Commerce at the outbreak of the war, I have been very much interested in
the situation in the south, and our eommittee has been very active in using
their Influence to meet present conditions.
Thinking that you might perhaps be interested in what we have done,
I em enolosine you herewith E, generel letter, asking the bankers in the Southern Stetes to agree to use their influence and to lend financial assistance

next year only to the planter who will agree to redact) his cotton acreage
'one heir and proportionately increase the production of food crops. As perImps seventy-five per cent of the cotton of the South is raised by farmers
Who are dependent for financial assistance upon either the local merchant
or bunker, we think this is the most direct way to secure results. About
5000 of these letiers have been mailed in the past few days to every bank in
the cotton producing states.
I also enclese you copy of resolutions which we are mailing throughout this section, whiele explain the practical manner in which cotton may be
stored against warehouse receipts, which can be used as collateral by the

country banks or merchants, and in turn be used by members of the National
Currency Associations to secure additional circulation under the AldrichVreeland Act, as amended.

I also enclose you copy of resolutions which were wired to the cotton
ezhanges, urging thee to reopen for business.
proving.

I am glad to say that conditions in this section are gradually imThe statements published by the national banks of Atlanta to-day,

as called for by the Comptroller of the Currency, will show Larger deposits
than war was declared - and also considerably larger than this day a year ago.

We believe that while this year's crop of cotton is going to be large,
the low price will be attractive to buyers, and will yet enable the South to
pay its debts.
With kind regards and best wishes for your continued sucoess, I am,




Yours very truly,

-

g_L R. WILKINSON. PRESID:INIT

THOS. D. MEADOR. TREASURER

WALTER G. COOPER. SECRETARY
DIRECTORS

V. H. KRIEGSHABER, 1ST VICE-PREST
BROOKS MORGAN, 2O VICE-PREST.
ALBERT HOWELL, JR. 3D VICE-PREST
H. G. HASTINGS. 4TH VICE-PREST.
IVAN E. ALLEN, 5 T H VICE-PREST.

JOHN S. OWENS
LYNN FORT
THOS. K. GLENN
JOHN MORRIS. SR.
JACOB W. PATTERSON

J. R. A. HOBSON
JOHN W. GRANT
J. LEE BARNES
GEO. W. HANSON
B. M. GRANT
THOMAS EGLESTON

W. J. DAVIS
FRANCIS E. KAMPER
W. H. WHITE, JR.
C. A. WICKERSHAM
S. A. KYSOR

Atlanta Chamber of Commerce
September 15th, 1914.

The President and Directors of this Chamber, whose names
appear above, earnestly ask your attention to the following plan to
relieve the situation caused by the European war.

They do so on the urgent recommendation of a Special Committee, composed of our ablest and wisest bankers, farmers, merchants, cotton men, and men of affairs, headed by Robert F. Maddox.
It is a plan by which the 1915 cotton crop can be reduced
one-half and the present surplus wiped out.
AS soon as it becomes known that next year's crop will
be cut in half, this year's crop will ell for a far better price
and the whole situation will be relieved.

This can be assured if the bankers and merchants of the
South will act as one man, pledging themselves to give financial
aid for the making of the 1915 crop only to those who will cut down
their cotton acreage one-half and increase food crops in proportion.
Representative farmers approve this plan and assure us
that it will not only be a Godsend to them now, but will give an
impetus to diversified agriculture which will put the farmers of
the South on the high road to prosperity.
Cotton is off one-third and food crops are a third higher.
Cotton has no market while food crops sell readily. It is easy to
see where your security lies.
We are sending this to every bank in the Cotton States.
If an overwhelming proportion of them say they will adopt this policy, we will publish that fact to the world and it will reassure thd
market in every center where cotton is sold. Let us do this now and
get a better market before cotton notes begin to fall due.
If every banker will act promptly on this line it will
save the South a hundred millions in the price of cotton this year.
Act now, sign the card and mail it by first .train.



Very truly your

L,
Secretar

ATLANTA CHAMBER OF COMMERCE
ATLANTA, GA., SEPTEMBER 14, 1914

To Farmers, Merchants, Bankers and others interested in the Cotton Crop:

Upon the recommendation of a special committee, whose names appear below,
appointed by this body to consider and recommend ways and means to meet the situation caused by the European war, the Atlanta Chamber of Commerce, after careful
consideration by this committee and by the board of directors finds the situation to
be as follows:

THE PRESENT SITUATION.
As a result of the war a large proportion of European mills will be idle for some
time and this is likely to reduce the consumption of American cotton very largely until
the war is over. The probable surplus of cotton, due to this cause, is estimated from
three million to four million bales, some even making it five millions.
Again it is held by some that the consumption of cotton by American and Japanese mills will be considerably increased.
It is impossible at this time to approximate the surplus or to state what is the fair
statistical value of cotton.
In the meantime the cotton exchanges of America and Europe have been closed for
more than a month, and for the time being cotton ceases to be a marketable product
f
at a uniform price.
Under these circumstances an attempt to force cotton upon the market will result
in further serious depression of the price.

LARGE SUMS 'ALREADY ADVANCED
Merchants, bankers and fertilizer men have advanced to the farmers large sums
and this indebtedness is now estimated to average nearly or quite as much as cotton
would sell for at this time.

There will be a demand from American mills for a good portion of the present

crop, which is expected to furnish a considerable amount of cash during the season, but

to force a liquidation of this crop would be ruinous to the producer and those who
have advanced him money or supplies. It would be a serious blow to the commercial
fabric of the South and one that would undoubtedly cause great distress and serious
depression throughout these States.

ONLY ONE COURSE OPEN.
In our opinion there is only one thing to do. That is for the farmers who are un-

able to pay their debts to satisfy their creditors by placing cotton in warehouses, insuring it and giving notes to their creditors with the warehouse receipt and insurance certificate attached.
If the cotton is properly stored and insured and the papers are in proper shape,
the merchant or the banker who made the advances will have good collateral, which
will make him safe and enable him to continue business with the aid he will be able
to receive from banks or others.
If notes are for not exceeding four months, with proper warehouse receipts and
insurance papers attached, they will form a class of paper, when in the hands of banks
connected with the National Currency Associations, which will be accepted as collat-




eral for the issuance of emergency currency, under the Aldrich-Vreeland Act as

0

amended.

This kind of paper coming from the farmer to the merchant, from the merchant
to the country bank and from the country bank to banks which are members of National Currency Associations, will be the means of securing money with which to carry
a large amount of cotton until it can be safely marketed.

THE ULTIMATE REMEDY.
The foregoing are means to meet the immediate emergency. There can be no permanent relief except in a heavy reduction of next year's cotton acreage, and we believe
this can be brought about by a campaign of education now, followed by the close and
cordial co-operation of merchants, bankers and farmers when the time comes to make
arrangements for planting next year's crop. If, at once and in a large way, with systematic effort, the farmers' associations, the commercial bodies, the press, the merchants and the bankers will all use their influence to bring about a reduction of next
year's crop, and following this, when the time comes to pitch the crop and make arrangements for money and supplies on which to make it, the merchants and bankers

will give financial encouragement to a diversification of the crop, making it clear
that they can better afford to help the farmer who will cut down his cotton crop and
increase his food crop, the desired reduction in the 1915 crop will be effected.

A CAMPAIGN OF EDUCATION.
We recommend that all these organizations and organs of public opinion vigor-

ously exert themselves and use their influence along this line.
We recommend that the Government, through its farm demonstration agents, the
State Colleges of Agriculture and the State Departments of Agriculture, conduct a
vigorous campaign of education along this line until the 1915 crop has been planted.
If this policy is adopted throughout the cotton producing states, it will not only
assure a good price for cotton the coming year but will necessarily have the effect of
raising the price for the surplus produced this year.

CAREFUL WAREHOUSE METHODS NECESSARY,
In the storing of cotton for holding purposes with the expectation of securing
money on notes accompanying warehouse receipts, it is very important that this business
be conducted in a careful and thorough manner.
The committee also urges the importance of bondizg the warehouse managers. It
may not be practicable in the present emergency to bond the warehouse in the fullest
sense, but there will be no serious difficulty in securing a fidelity bond for the managers
of warehouses from responsible Surety Companies. This will add greatly to the value
of the warehouse receipt.

INSURANCE CERTIFICATES IMPORTANT.
In addition to this, those who take such notes should be sure that the insurance

certificate accompanies the warehouse receipt and is attached to it.
Only in this way can the banker intending to advance money on the security make
sure that the right kind of insurance policy has been issued and that it fully covers the
risk.

The insurance on the cotton will test the availability of the particular warehouse
in which it is proposed to store it and it is important that this detail receive careful attention.

Hereto are attached forms of warehouse receipt and collateral note which our corn-




mittee after careful consideration has approved. They have also been approved by the
Government.
We also enclose statistics of the warehouse capacity and related subjects collected
by the Secretary of this body.
While the situation is the most serious that has confronted the Southern people in
many years, and one that calls for calmness, courage and co-operation, we are confident

that in this spirit our people will rise to the occasion, meet the emergency, and pass
through it without serious harm.
These recommendations were adopted upon recommendation of the special committee composed of Robert F. Maddox, Chairman, Me11 R. Wilkinson, W. S. Witham,

A. P. Coles, T. K. Glenn, J. K. Orr, H. W. Miller, H. E. Watkins, Albert Howell,
Jr., J. K. Ottley, Frank Hawkins, Brooks Morgan, Ernest Woodruff, Ed. H. Inman,
F. J. Paxon, Sam D. Jones, V. H. Kriegshaber, Dr. H. E. Stockbridge, and J. R. A.
Hobson.

W. G. COOPER, Secretary.
WAREHOUSE CONDITIONS, ADVANCES, ETC.
Statistics Collected by W. G. Cooper, Secretary Atlanta Chamber of Commerce

The following information was secured from bank cashiers in Georgia and other
Southern States in answer to letters requesting this information. Eight hundred letters
went to cashiers of State and National Banks in Georgia, and 208 letters went to cashiers

of National Banks in North Carolina, South Carolina, Alabama, Missisippi and
Louisiana.

Over seven hundred replies were received, about 600 from Georgia and 119 from
other States.

A striking fact brought out by these inquiries is that the warehouse capacity is
from 1/3 to 1/2 the cotton receipts at most towns. This will probably be ample to
meet the present emergency.
Another important fact is that in most of these States the advances already made
to farmers by merchants and bankers average between eight and nine cents per pound
on the crop.
Another fact of great importance is that the farmers in most of these States have
raised about two-thirds of a years' supply of corn and forage.
The figures by States are as follows:
GEORGIA:
RESULTS from 300 towns.
Total warehouse capacity, 1,594,609.

Average advance,
Percentage of foodstuffs, 64.12%.
NORTH CAROLINA:
RESULTS from 24 towns.

ALABAMA:

RESULTS from 49 towns.
Total warehouse capacity, 437,552.
Cotton

MISSISSIPPI:

5,089,603. receipts,

Average advance, $42.77.
Percentage of foodstuffs, 64.78%.

Total warehouse capacity, 248,550.
Cotton receipts, 676,851.

RESULTS from 20 towns.
Total warehouse capacity, 343,70.

Percentage of foodstuffs, 67.3x%.

Average advance, $42.79.
Percentage of foodstuffs, 69.81%.

Average advance, $32.73.

Cotton receipts, 533,800.

SOUTH CAROLINA:
RESULTS from 23 towns.
Total warehouse capacity, 200, 950.
Cotton receipts, 361,200.
Average advance, $40.02.
Percentage of foodstuffs, 53.14%.

APPROVED FORM OF COLLATERAL NOTE.
GA.,

AFTER DATE
AT

191.

PROMISE TO PAY TO THE ORDER OF

BANK

DOLLARS,
per cent, per annum until paid, with all costs of collection,
including ten per cent. attorney's fees, if collected by law or through an attorney at law, and have pledged to said
payee, as collateral security

For value received, with interest from date at

and do hereby agree that, whenever the total market value of the cotton represented by said warehouse receipts held
as collateral security for this indebtedness of the undersigned to said holder shall be insufficient to cover the same, with
ten per cent, margin added thereto, to deposit with said holder immediately, upon demand, additional security to be
approved by said holder, sufficient to cover the said amount and marginthe said additional security to be a collateral
security to the same extent as the securities hereby pledged; and, in default of depositing the additional security, as
above agreed, this note shall become instantly due and payable, precisely as though it had actually matured. Upon
default of payment, when due, said holder is hereby authorized to sell, at any time or times thereafter, and without any
previous demand or notice, the whole or any part of the said warehouse receipts or the cotton they represent, at either
public or private sale, and to apply the proceeds thereof to the payment of such indebtedness or liability, with interest and costs, including ten per cent, attorney's tees, the undersigned remaining responsible for any deficiency. At any
sale made in accordance with the above agreement said holder is hereby authorized to become the purchaser and absolute owner of the securities sold, free of all trusts and claims.
I also agree to keep the above ,described cotton fully insured at its market value against loss or damage by fire in
a company acceptable to and for the benefit of the holder of this note, and to pay the cost of said insurance until this
note is paid.
Each of us, whether principal, security, guarantor, endorser, or any other party hereto, hereby expressly waives
and renounces, each for himself and family, any and all homestead and exemption rights either of us, or the family of
either of us, may have under or by virtue of the Constitution or laws of Georgia, any other State, or the United States,
as against this debt or any renewal thereof ; and each of us further waives demand, protest, and notice of demand,
protest and non-payment.
Given under the hand and seal of each party.
(L. S.)
No
(L. S.)
Due
Address

APPROVED FORM OF WAREHOUSE RECEIPT.

No

.1-91...

Warehouse
(P 0. Address)
Received from
the following described bales of cotton:
MARK

NUMBER

WEIGHT

CLASS

MARK

NUMBER

Ga.
,

WEIGHT

CLASS

This cotton is received in good order, and is deliverable only upon the presentation of this receipt, properly enper bale per month warehouse charges.
dorsed, and upon the payment of
Warehouse
hereby obligates
The

itself to properly house and protect the above described cotton until called for by the holder of this receiptacts of
Providence and damage or loss by fire excepted.
Warehouse
hereby gives the
The
holder of this receipt the,right at any time to inspect the above cotton.

Having pledged the foregoing security as a
basis of credit, hereby certify that the above
described cotton is my own property and free
from any lien or encumbrance.




I

warehouse
By

APPROVED FORM OF ENDORSEMENT OF WAREHOUSE RECEIPT TO BE PRINTED ON BACK.
For value received I hereby transfer and assign all my
right, title and interest in this receipt to
and authorize
to deliver same to
or his order.

Warehouse

(L. S.)

0




pa," 4 todi

14:-

4

August 27, 1914.

0 0
,

M. S. Murray, Esq., Assistant Cashier,
The Lumbermans National Bank,
Houston, Texas.
lily dear Sir:-

Having no talent for rhyme, I am unable to prepare what
would be a suitable response to the very clever lines enclosed
with your letter.
I can, however, write you a little account of what is
happening in regard to travelers' cheques and letters of credit
abroad, in which I believe you will be interested, asking, however,
that you consider the matter confidential, as it is still too soon
to make public any statement in regard to this important matter.
As you know, letters of credit and travelers' cheques
issued by practically all American institutions and firma are paid
in any part of the world under banking arrangements which permit
reimbursement by drafts on London at the current rates of exchange.
Just before the war broke out, some of the New York bankers anticipated that London reimbursement might be interrupted.
I don't think many New York bankers realized the possibility that
moratoria would be declared by many countries, or even worse,
bank holidays, and that no payments in some cases, and in others
very small payments would be made at various continental cities,
and London as well, even though balances were held in the banks
for the payment of these items. Steps were taken, however, as
early as the 28th, 29th and 30th of July to afford protection to
travelers in Europe who held American letters of credit. The situation developed so rapidly and so seriously that it was finally
found necessary to provide a fund of gold to be sent abroad on a
United States war vessel, and I may say confidentially that about
47,000,000 was at once raised by Bankers Trust Company, in cooperation with others, for this purpose, and additional amounts
were promised if required. The collapse of ordinary banking machinery abroad was so serious for about a week or ten days that
tourists became panic stricken and very foolishly, in many cases,
sold their cheques and exchange at ridiculously low rates. As soon,
however, as the announcement was made that our Government was cooperating in plans to furnish gold to effect the redemption of all
responsible American travelers' credits, relief was felt instantly
throughout Europe. Banks cashed cheques and letters of credit more
freely, and special credits were arranged at many points where it
seemed necessary.
Two of our Vice-Presidents, Ir. Kent and Mr. Duane, were
in Europe and were able to visit both Berlin and Paris before proceeding to London, thus making arrangements for the protection of'
cheques which we issue for the American Bankers Association. Since
these relief measures have been put into effect, many travelers
have returned from Europe. I may say that with very few exceptions
they expressed to us the deepest gratitude for the prompt measures
which were taken not only in their own behalf, but in behalf of



k. S. M. 2

0

those who held other forms of travelers' credits. We are now advised that relief has been afforded in practically all parts of
Europe; even in Germany, where cable communication has practically
ceased, we have a representative who went personally from London
for this purpose. 0,000,000 of gold was shipped to London on the
Cruiser "Tennessee" and 0,000,000 of gold has been locked up in
our vault to protect a credit of a like amount in Paris. Separate
credits have been arranged in Italy, Switzerland, Portugal, France,
England, Scandinavia, Denmark and Holland, and we are informed that
everything necessary to be done has already been done in Berlin,
and our representative there will see that all details of these arrangements are promptly put into effect.
I should not conclude this letter without stating that
only by the co-operation of the State, Treasury, Navy and War Departments at Washington has it been possible to make these arrangements as promptly and effectively as they have been made.
On the whole, I believe it will be found that holders
of cheques issued by the American Bankers Association have been
protected to a degree that would not have been possible except by
the united action of a large number of important institutions,
with the co-operation of the Government, and that in this unprecedented crisis the neceseities of our friends in Elirope have been
promptly met.

This letter is for your own information and in order that
you may correct any misleading infordation in the minds of friends
of the Houston Daily Post. We do not, however, consider it wise
at this time to publish any statement on the subject,which will be
done at length and authoritatively a little later.




Very truly yours,
(Signed)

BENJ. STRONG, JR.
President.




/

,.,

deatt4,4ii-1

PRESIDENT:
F.O. WA ...President First National Bank ,Nashville,Ten n.
FIRST VICE-PRESIDENT:

PO& 61715)P.:11,

WILLIAM LIVINGSTONE,President Dime Savings Bank,Detroil, Mich.
CHAIRMAN EXECUTIVE COUNCIL:

CHARLES H.HUTTIG,President Third National Bank,StLouis,Mo.
GENERAL SECRETARY.'
FRED. E.FARNSWORTH, Eleven Pine St,New York City.
TREASURER:
ARTHUR REYNOLDS. Pres.Des Moines National Bank ,Des Moines,la.

ASSISTANT SECRETARY..
WILLIAM a FITZWILSON, Eleven Pine St,New York City.
GENERAL COUNSEL..
THOMAS B. PATON,Eleven Pine St,New York City.,

Nashville, Tennessee,
August 22, 1911.

MANAGER PROTECTIVE DEPARTMENT.

L.W.GAMMON, Eleven Pine St,New York City.

AUG 24 1911

Mr, Benjamin Strong,

C/o BANKERS

TRUST

COMPANY,

New York City.

My dear Mr. Strong:-

I have read with interest your letter of
You make two suggestions regarding topics for
August 17th.
the address which you are to prepare for the New Orleans Convention which appear to me to be especially suitable: first,
"The Influence of the Reserve Assoctiation on the Foreign Banking
Business of the United States:" second, The Influence of the
Reserve Association upon Interest Rates in the United States."

-

There is another phase of the subject with
which you had most to do at Atlantic City in changing the original proposal of Senator Aldrich: to wit, the method of taxing
It seems to me to be a good field to include
circulation.
subject of taxation. On September 4th, we will have
the entire
a meeting of the Administrative Committee in Chicago, when I
will present all of the various subjects to the committee and
we will decide definitely upon them.

I am sure if you take either of the three
subjects here it will be entirely agreeable to the committee,
or if you prefer to wait until the entire list is completed I
I
will be glad to submit them to you for your consideration.
the opinion in your letter. that
am glad that you expressed
"business less important" should be left over for another year.
That is certainly the position that I have taken with all departments of the Association, and I am sure that my associates on
the committee will approve.
.

I am now taking it up with the various sections of the Association, including the Trust Company Section,
and I hope to get them all to take the same view of the situaIf you happen to run across Mr. Fuller, who is President
tion.
if you would express
of the Trust Company Section, I would be glad



PRESIDENT;
F.O. WA, iS,President First National Bank ,Nashyille,Tenn.
FIRST VICE-PRESIDENT..
WILLIAM LIVINGSTONE,President Dime Sayings Ban k,Detroit, Mich.
CHAIRMAN EXECUTIVE COUNCIL/
CHARLES H.HUTTIG,President Third National Bank,StLouis,Mo.
GENERAL SECRETARY:
FRED.E.FARNSWORTH. Eleven Pine St..New York City.
TREASURER:
ARTHUR REYNOLDS,Pres.Des Moines National Bank,Des Moines,la.

tansy, Pion Wm:am
Thwilifoval

ASSISTANT SECRETARY:
WILLIAM G. FITZWI LSON, Eleven Pine St.New York City.

GENERAL COUNSEL:
THOMAS B. PATON ,Eleven Pine St,New York City.,
MANAGER PROTECTIVE DEPARTMENT.

L.W.GAMMON, Eleven Pine St.,New York City.

trong

#2.

yourself to him, as I hope to meet him within ten days or two
weeks to arrange the matter.
Yours very truly,




President.







W ESTEL7X7A4

5r7

13

WESTERN UNION

NIGH %wl

THEO. N. VAIL. PRESIDENT

--

RECEIVED AT
101BPN

70 NL
NENORLEANS LA SEPT 1273,, (I phoned

r- '

BENJAMIN N STRONG
NOODSHOLE MASS.

to ----------------------------

.

---------- - ------------

---------------- -----

---------------

To De --------------

BARKERS 1.711E VERY APATHETIC AND TAKING LITTLE INTEREST THINK HO NEVER
CAN SECURE COOPERATION OF ONE BESIDES OURSELVES ONLY FOUR NATIONAL
BANKS

AND OUTSIDES OURSELVES GOOD STOCK IS SMALL I THINK

PLAN IS GOOD AND SHOULD BE CARRIED OUT AND I
AM -WILLING TO COOPERATE WE HAVE SATISFACTORILY ARRANGED OUR

SEPTEMBER FOREIGN MATURITIES LonoN SEEMS DISPOSED TO GRANT CREDiTS ON
REASONABLE TERMS CREATE BALANCES TO BE APPLIED TO OLD OBLIGATIONS.
SOL NEKLF4R4,

1126P




SEND THIS COPY TO
AUDITING DEPT
C.

September 14, 1914.

Sol. Wexler, Neg.,
Whitney Central Nat'l Bark,
New Orleans, La.

Federal :Zeserve 'board has announced that conclusion New York City
financing makes unnecessary to consider gold plan for present. Effect
of announcement in New York very unfavorable. We believe completion
New York financiiag makes raising gold fund from rest of country much
eacder and necessary. Should be done before English moratorium expires
00%ber fourth, Gold pledged for City cannot be used for any other

purpose, and r...) exchange will be made by that transaction. If you
.agreo wisdom of carrying out our recommendation suggest you wire Federal
Reserve Board or secretary Treasury urging prompt action. New York

3ankers will cooperate in handling exchange for city and pool accounts.
Benj. Strong, Jr.




CE NTItAL NAT! OIVAir BMVI(
COV NNW 0114.11.11KAATS,

September 17th,1914.

Benj. Strong, Jr.,Esq.,
16 Wall Street,

SEP 2 1 1914

New York City.
Dear Mr.Strong:

I have received your telegram of the 15th instant,
as well as your letter of the 14th, and thank you for keeping me
advised.

It is utterly impossible for me to leave here at this

time, as I am practically alone and only made the trip before at
considerable sacrifice.

The Department at Washington is in possession of

the information relative to the amount of Gold held by the New
Orleans banks, as they have asked for this data and no doubt same
will be available to you, to which effect I am wiring you to-day.
Our liability to Europe on Foreign Exchange has
been pretty well covered, as we have bought considerable exchange
in the last few days and have besides arranged with our correspondent

to take up any Bills we have outstanding and to cover them at our
own convenience.

With best wishes, I am,

Yours very t

Die .SW-:-B.

ly,

WESTEkX%Xl UNION
sx.-tv
TEL
AM
Z

Form 168

WESTERN UNION

GE

GE W. E. ATKINS, VICE-PRESIDENT

NEWCOMB CARLTON, PRESIDENT

BELVIDERE BROOKS, VICE-PRESIDENT

RECEIVED AT Cotton Exchange Building, New York

EgiOAD

15 SAN OC 20 ILW
NEWORLEANP LA SEPT 17
BENJ STRONG JR

706
CARE BANKERS TRUST CO

16 WALL ST NEWYORK
WPOSPIBLE FOR "1E TO LEAVE'

AT THIS TP4E COMPTROLLER HAS

ALL INFORMATION CONCERNING AMOUNT OF

SQL WEXLER



1121A

GOLD HELD BY NEWORL EANP BANK

0

dO




14' NEW OittiumAtivs,

September 28th, 1914.

Benj. Strong, Jr.,Esq.,
16 Wall Street,
New York City.

Dear Hr.Srong:
I have your esteemed leLter of the 22nd
instant, enclosing data concerning the $100,000,000. of
Gold, and would thank you to advise me if it is now desired
to obtain these commitments from the various Clearing House
cities, so that I may take the Matter up with our Clearing
House.

If this be the case, will you please telegraph
me upon receipt of this letter, requesting me to place the

matter before our Clearing House Association and urging upon
me the desirability of having them subscribe the full amount
allotted to New Orleans.

I shall then do my best in the

premises.

Awaiting your reply, I remain, with kind
regards,

Yours very truly,

,?5/.(

Dic.SW -: -B.

4111111111111111FWaTEZKI 1711MII
GE

lE W. E. ATKINS, VICE-PRESIDENT

AM

NEWCOMB CARLTON, PRESIDENT

RECEIVED AT 24 WALKER STREET, NEW YORK CITY

B57N0

AVM

18

109 NL

2138

BELVIDERE BROOKS, VICE-PRESIDENT

EnLORADirsr
WAYS

NEW ORLLANS LA SEP 28 14

OPEN.

BENJ W STRONG JR

CARE BAKE 8 TRUST CO NEWYORK
PLEASE ADVISE BY WIRE FOR INFORMATION OUR CLEARING HOUSE FIRST IF
OUR SUBSCRIPTION TO GOLD FUND IS PAID IN DEMAND STERLING ON LONDON
CLEARING HOUSE BANKS WILL WE GET IMMEDIATE CREDIT IN NEWYORK AND IF
SO AT WHAT RATE PER POUND STERLING SECOND IF GOLD IS DEPOSITED WITH
SUBTREASURY HERE FOR TRANSMISSION THRU NEWYORK SUBTREASURY DO WE
CORRECTLY UNDERSTAND THAT NOT MORE THAN TWENTY FIVE PERCENT OF
OUR SUBSCRLPTION WI-LL BE CALLED FOR UNTIL COVERED BY THE EQUIVALENT

CREDIT IN NEV1ORK THIRD WILL THE CERTIFICATE FOR THE DEPOSIT OF TENT
-Y FIVE PERCENT OF AMOUNT SUBSCRIBED PENDING COVER IN NEWYORK BE
PERMITTED TO BE COUNTED AS RESERVE.BY THE COMPTROLLER



'SOL WEXLER

805PM

11




CONFIRMATION OF TELEGRAM FROM

BANKERS TRUST COMPANY,
16 WALL STREET

NEW YORK CITY

SopteMbor 29. 1914..

Sol Wexler,
Care I'llitney-Central National Bank,
New Orland, La.

Replying your . .re trenty-eighth, contributions to fund to .0e made in gold
only and not exchange Stop. Firlt call not exceed twenty-five per cent,

subsequent °P.n.s if made no limited that total amount invested any one time
will not exceed tretity-five percent, difference boine returnee in New York.
funds out of proceeds sales exchange 3top. Comptrollor-of Currency informally
advines un cortifIcate'of deposit cannot be counted al reserve.
.

1TRONG, JR.

Charge 3ankers Trust Co.
Acct. Gold Fund.




_smrs

HOrIM AL;YZIATT/AiiillON
NEW ORLEANS, IA.

September 30th-1914

Yr. Benj.Strong Jr.,
c/o Bankers Trust Company,
New York City.
Dear Sir:Your telegram of September 29th.,
addressed to Mr.Sol Wexler of the WhitneyCentral National Bank was read at a meeting
of this Association held this morning.
It was directed that message be
sent to you as per duplicate enclosed.

Yours very truly,

Manager.
Enc.

.

=Er

Form 2-1111111

,RS NO.

THEO. N. VAIL, PRESIDENT
SEND the following Telegram, subject to the terms
on back hereof, which are hereby agreed to

To

September 30th*

11014-C

c/o BANKieRS TRUST COMPANY* NEW YORK CITY,

-re cf tido J-413cciat4.on have unanimously agreed to

their reopective -)ro Ta'aa cf the Six Hundr,d Thousand Delr
qpt fc:rth. in'Reser7a Board Lir




C

A. YORCAN Manager,

ClEARINC HOUSE AEOCIATION.

19t..

ALL TELEGRAMS TAKEN BY THIS COMPANY ARE SUBJECT TO THE FOLLOWING TErt,..\
To guard against mistakes or delays, the sender of a telegram should order it REPEATED, that is, telegraphed back to the originating office for eon
An...
For this, one-half the unrepeated telegram rate is charged in addition.
Unless otherwise indicated on its face, THIS IS AN UNREYEATED TELEGRAa AND
PAID FOR AS SUCH, in consideration whereof it is agreed between the sender of the telegram and this Company as follows:
The Company shall not be liable for mistakes or delays in the transmission or delivery, or for non-delivery, of any UNREPEATED telegram, beyond the
amount received for sending the same; nor for mistakes or delays in the transmission or delivery, or for non-delivery, of any REPEATED telegram, beyond fifty times
the sum received for sending the same, unless specially valued; nor in any case for delays arising trona unavoidable interruption in the working of its lines; nor for
errors in cipher or obscure telegrams.
In any event the Company shall not be liable for damages for any mistakes or delays in the transmission or delivery, or for the non-delivery, of this telegram, whether caused by the negligence of its servants or otherwise, beyond the sum of FIFTY DOLLARS, at which amount this telegram is hereby valid, unless
a greater value is stated in writing hereon at the time the telegram is offered to the Company for transmission, and an additional sum paid or agreed to be
d based
on such value equal to one-tenth of one per cent. thereof.
The Company is hereby made the agent of the sender, without liability, to forward this telegram over the lines of any other Company when necessary to
reach its destination.
Telegrams will be delivered free within one-half mile of the Company's office in towns of 5,000 population or less, and within one mile of such office in other
cities or towns. Beyond these limits the Company does not undertal to i lake delivery, but will, without liability, at the sender's request, as his agent and at his
expense, endeavor to contract for him for such delivery at a reasonable price.
No responsibility attaches to this Company concerning telegrams until the same are accepted at one of its transmitting offices, and if a telegram is sent to
Ruch office by one of the Company's messengers, he acts for that purpose as the agent of the sender.
The Company will not be liable for damages or statutory penalties in any case where the claim is not presented in writing within sixty days after the telegram is filed with the Company for transmission.
No employee of the Company is authorized to vary the foregoina.

THE WESTERN UNION TELEGRAPH COMPANY, Inc.
THE,. N. VAIL,

PRESIDENT

CLASSES OF SERVICE
TELEGRAMS
A full-rate expedited service.

NIGHT TELEGRAMS
Accepted up to 2.00 A.M. at reduced rates to be sent during the

Telephonic delivery permissible. Day Letters received subject to
express understanding that the Company only undertakes delivery of
the same on the day of their date subject to condition that sufficient
time remains for such transmission and delivery during regular office
hours, subject to priority of the transmission of regular telegrams.

night and delivered nnt earlier than the morning of the next ensuing
business day.
NIGHT LETTERS
DAY LETTERS
Accepted up to midnight for delivery on the morning of the next
A deferred day service at rates lower than the standard telegram
ensuing business day, at rates still lower than standard night telegram
rates as follows: One and one-half times the standard night letter
rates, as follows: The standard day rate for 10 words shall be charged
rate for the transmi%ion of. 50 words or less mid one-fifth of the
for the transmission of 50 words or less, and one-fifth of such standard
initial rate for each additional 10 words or less. Subordinate
day rate for 10 words shall be charged for each additional 10 words or
to the priority of transmission and delivery of regular telegrams.
less. Must be written in plain English. Code language not perMust be written in plain English. Code language not permissible.
missible. Mail delivery, postage prepaid, permissible.






Will TX BY- C MAMMAL NAT! CONA111. I LlikArn

4\\*

ti)

.

Sim w 0 mukaAavs ,

September 30th, 1914.

Benjamin Strong, Jr., Esq.,
care Bankers Trust Company,
New York City.
Dear Sir:

Referring again to your valued letter of the

22nd instant, I wired you to-day that our Clearing
House Association had agreed to subscribe to $600,000.
the

of,gold fund allotted to New Orleans,

which I

now con-

firm.

I am pleased to note to-day the decline in
Sterling exchange, which I trust will continue and that
the operation of this fund will have the desired effect.
Yours very truly,

SW-: -B.




C ENT HAIL NAT I CIIX.AL
OF' Niw 0 turAnAms,

October 5th, 1914.

Benj. Strong, Jr.,Esq.,President,

OCT
BANKERS TRUST COMPANY,

8 1014

REFERRED TO

OFFICE

16 Wall St.,New York City.
Dear Mr.Strong:

I have your valued letter of the 2nd
'instant, and glad to learn how well the pool has worked,
and also to observe its effect upon the Exchange market.
This is quite in line with our expectations, and we are
wiring you to-day for quotation on cable transfers, but
will fill all of our requirements at the present time.
which I trust will be satisfactory.

I hope to have the pleasure of seeing
you in Richmond

or, if not, in New York a few days there-

after.

With kind regards, I am,
Yours very truly,

Dic.SW-:-B.

NVESTEasm UNION
Z

Form 168

WESTERN UNION

GEORGE W. E. ATKINS, VICE-PRESIDENT

TEL It

a

AM

NEWCOMB CARLTON, PRESIDENT

BELVIDERE BROOKS, VICE-PRESIDENT

RECEIVED AT Cotton Exchange Building, New York
1 4 7E X

M. n

1 6 LC

Kr

NEWORL: ANS LA SEPT 30
BENJ STRONG JR

to 1914

874

CARE BANXERS TRUST CO NY
THE NEWORLEANS CLEARING HOUSE HAVE AGREED TO SUBSCR I In SIX HUNDRED

THOUSAND DOLLARS TO THE GOLD POOL




SOL WEXLER
1 24 5 P

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