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Cable Address

DUNDEE 27 EovAgr, 1914.

Banjamin Strong, Jr., Esq.,
27 Pine Street,
New YorTr.

My dear Mr. Strong,

I have your letter of the 9th October and

am delighted to be able to congratulate you upon your
appointment as Governor of the Federal Reserve Bank,
Hew York.

This is a very great honour indeed and your

selection for the post is most gratifying to all your
friends, whether of recent date or co-elawith or prior
to your emancipation fromlipi3herbockers.

It must be

an occasion of profound satisfaction to your father, mother
and sister.

I know you are going to do your very best to

succeed in the office and you certainly have my good wishes.
Exchange is now about normal and looks as if it
would so continue.

I never had the least doubt about the

determination and capacity of the American people to bring
it into this condition, and have assured all my friends

Benjamin Strong, Jr. Esq.



who have consulted me about funds accumulated in America
that if they would simply deposit them in good Banks there
and wait they would be able to get their remittances without

The expectation expressed in my letter to you of
30th September has been confirmed by subsequent reflection
and developments.

I do believe that the sanctity of con-

tracts has by this war been placed on a higher level than hereI think it will stay there and you and I know what


an immense

benefit that will be to business.

I have a book here by Muhlman about the financial

systems of the world, but it is now quite out of date.


there been a new edition or is there any other work which

would enable me to follow intelligently the financial arrangements that have recently been made in your country.

I am

rather %olcio in some respects about the new Banking system
and if there is any pamphlet dealing with this subject kindly
send me a copy.
The closing paragraph of your letter afforded me


As old friendsbecome few in number the heart clings

Benjamin Strong, Jr. Estl.


closer to those that are left.

Just about the same time

as I received your letter I hadone from Lord Leith of the
same friendly character.

His letter touohed me and I am

sorry for our old friend at present.

He lost his son in

the African War and now his grandson in this awful oonflict.
The old gentleman as you know used sometimes to get very
blue and fussy.

I think he is a little raised at present

about espionage and has been making two or threeexcited
speeches in the House of Lords.

This must have embarrassed

the Government and alarmed the public, and I think that if you

and I had been in his position and if we had any information
which was of substantial value we would have taken rprivately to the officer authorised to deal with such things.


is no use making proclamations on the housetops which warn
criminals to be on their guard.

Please remember me very kindly to your people and
with kindest regards,

Believe me to be,

Yours very sincerely,





16 Novr., 1916.

Strong, Esq.,
Federal Reserve Bank,
62 Cedar Street,
I;ew York.


I have been reading over again your letter

September, 1915, and am recalling with pleasure

ing I spent with you at the Ritz Hotel.

I wish

have another, because I do not have any other

hose knowledge is so great or whose conversation


I have just been in London where I saw our


Blackett and some other Treasury Of-

I certainly hoped that by this time the situ-

uld have eased and our burdens have grown lighter,

contrary is the case, for however well we may be
them, they are certainly heavier

and more com-

In your letter you refer to Lord Reading


now been retired from his former financial position.
know the man at all, but there seems to be general


Benjamin Strong, Esq.



Benjamin Strong, Esq..



possible that he would be surprised by his own success,

provided always it was gone about in the right way.


however, is by no means a certainty, and like some of our
other projects might fail through lack of wise direction.

I have never been quite able to understand why Provinces and Cities in Canada got money in New York on their own
debentures, while the great British Government is forced to
put up collaterallike layself and other humbler borrowers.

I am told there is an explanation in the limitations imposed
by the law, but as to that you are better informed than I.
My daughter has been out in Rumania with the Scottish
Women's Hospital, and you will be glad to know that on Tuesday
evening she arrived home safe and sound and is looking well.
She will be with us for a little while before she takes up
some other form of national work, because she is absolutely
determined not to be idle.

Some weeks ago I spent a pleasant hour with our old
friend Lord Leith.

He was speaking very kindly of you, and

I judged more from his manner than from expressed words, that
he is gratified by the success of your career.

He had a very

serious operation on his bladder, but he has come through it

Benjamin Strom, Esq..




all right.

He is looking well, but it did occur to me

that his mind was not as clear as it used to be.

I sup-

pose further convalescence will improve him in that respect.
I trust you yourself are very well and would be glad
to have a few lines from you about yourself and your family.
You might also tell we what position is now occupied by our
friend Daniel Kingsford.
he left the :Ant.

I have not heard from him since

I should be glad if, when you see him,

you would give him my kindest regards, and with the same
to yourself,
I am,

Yours sincerely,

;Managing Director.

A good many people here have some apprehension as to
whether, if the war continues much longer, we can remain
Our failure to do so would be a very great
on a gold basis.
misfortune both to ourselves and to the world, but it is something which we provincial economists know very little about
I should be glad,
and find it impossible to form any opinion.
therefore, if you would give me a few lines as to the general
expectation in New York.



Cable Address


June, 1915.

Benjamin Strong, Esq.,
2ederal Reserve Dank of flew York,
62 Cedar Street,
flew York.

Dear irr. Stron,

It is a bad thing to have a reputation above

ones desserts, for people are disappointed when it is
not lived up to and they do not get information for
which they had asked.

I have in this country a great

reputation for being a boss amongst American affairs
and for knowing a great deal about a great many thin
about which I know nothing.

.Then I was in London the

other day several people asked me about this American

exchange question, and in particular whether America
would take from this country a short loan for, say,

five years of One hundred million or two hundred million

One I,:ember of Parliament expressed the

opinion that such a loan would rro readily and would be

placed including all comlissions at a cost of not erceedI had to reply to such enquiries that I





Benjamin ,_;tronF;,


c,uld express no opinion, but that I was quite

certain of two things, viz:- that any Loan placed by this
country in America would have to be free of all kinds of
taxation, especially income tax, and that it would have
to be made payable in American gold dollars, or, alternatively, the exchange guaranteed.

Something will have

to be done to pat the exchange right and I cannot think of
anything that will be effective excepting this.

If I had

been in Lew York I wol7ld have been dropping in to talk about

it with you, but as I cannot do myself that pleasure and
au at the moment content with one of my own cigars, which
I do not think are as good as yours - it occurrea to me that
I might ask you to do me the favour of writing a few lines
to me on the subject.

;rite as confidentially as you please,

but please do say something

to me, so that when some Member

of Parliament or Government Official begins posing me with

questions again, I may have something in my head which may
warrant the assumlition on my part of an air of wisdom.

how are your father and mother.

Kindly remember

me to them, and Liss jtron3, and believe me to be,

Your:: sincerely,



Cable Address.

DUNDEE 23 July, 1915.

Benjamin Strong, Jr., ESQ.,
62 Cedar Street,
New York.

Dear Mr. Strong,

Many thanks for your letter of 1st inst.
which I have delayed acknowledging sooner becanr3c off

and on I have been giving a good deal of thought to the
sug.estion which you make in connection with Central and
South America.

Since then I have read the same suggesticG,

in your address at the/Bankers' Convention.
has appointed a Committee to deal with issues

The Treasury
and it has

been endeavouring Vo induce Mortgage and Investment Com/

panies to take si,011 action as will lead to remittance from

your side to this.

I do not think they are going to in-

sist on anything unreasonable and our intercourse with
them has been most agreeable, but when I proceed to analys._

the composition of this Committee I see that its natural
bias, however unconsciously and honourably exercised, can
hardly fail to be in favour of maintaining the pre-eminence


of Iondon finance as an international Clearing House.
Lord St. Aldwyn is Chairman of this Committee.

He is

a Directo4 of the Iondon Joint Stock Bank and Chairman of the Yorkshire Penny Bank.

He is also Chairman

of one of the Committees of the Banks interested in the
Iondon Clearing House Association.
another member.

Bank of England.

Lord Cunliffe is

He, as you know, is Governor of the
Sir 7. G. Banbury, a third member, is

a Director of the Iondon F3 Provincial Bank.

Sir Thomas

Whittaker, a fourth member, is Managing Director of the
United langdomTemperance 2.; General Provident Institution.

whose invested funds are over ten millions sterling, of
which, so faz as we can tell from their printed Balance
Sheet, little or none are American.

The fifth member

is Captain Pretyman, appointed by the Board of Trade.

He is stated to be a nice pleasant fellow without much
influence or knowledge of financial affairs.

I do not

know what such a Committee would say to your proposal,

but if I could be satisfied that it would exercise any
important influence in rectifying sterling exchange, I

do not think I would hesitate about submitting it in my


most diplomatic manner.

So far as I have yet consider-

ed Ism unable to see that it would do much good because
I am told that while Central and South America

have been

in the habit of drawing sterling bills on Iondon, these

have been offset by American remittances from New York
in time to meet the same.

If this be true as a general

statement the one would seem to balance the other.


doubtedly South America is developing a habit of making
settlements in London by dollar drafts on New York.


such instruments have passed through my hands lately.


sent them to our New York correspondents who cashed the
same and sent sterling bills.

At this stage I am keeping

an open mind on the subject ready to ii.bibe any education

that comes my way, but I think you will agree with me that

my appreciation of the situation is not sufficiently intelligent or adequate to warrant me in proceeding any furl(



While this is all the length I go, I hope you will

understand that I appreciate your letter very fully and
defer most loyally to the hesitation expressed in its opening sentences.

I am very glad to hear such good accounts of your
father and his family, and with kindest regards,

I am, yours sincerely,

ff(4444A44 &.XL4C4.4.44...)



Cable Address





Benjamin Strong, Jr., Esq.,
62 Cedar Street,

New York.

My dear Er Strong,


have no answer to my letter of 23rd. Ju1,y but in the

circumstances delay does not surprise me.


.41,7E the sumo ex-

perience in other quarters.
When T wrote my letter I aid not inteL.d to communicate

with any of our Treasury officials until I had hoed from you, but
in the meantime I changed my mina and nulam"tted Tour auaestion to
one of them with whom my relations have been entirely pleasant.

From him, however, I have no reply, and to-lay Information reaches
me which leads me to the inference that the subject of South
American Exchange is someWhat promineefly under discussion between
British and American financiers.

You :mow much more about this than

I do, for after all I um -only an outside provincial, but it apparently explains that silence which is as yet my only resulonse, and

confirms the suggestion which Z made at the foot of tLe first gaze
of my respects oL 23ra ultimo.

These axe very anxious times and we have all a Great deal
to think about and a greiii; Llarw alfrioultiez to overcome.

tizes I think t:lat some of


latter woul.a not

(mow you


and me

very lone, for we witerttand oaoh ether an(i are not bound by
Digitized the/


Be LdQ,rain_Ztrong. 2.
afna acem lteatnet



zertaim;pKrty ftialtkc cc tile

n arra/averment -,11177a the .fix


timbax have be pttitbmoiNa_prettw

e matter .of 3£%e. l suet weritarlous


proaQ.11-tteile It
a 121.0.axia

y the B

re It nO reason


Vile elsagAatSh

aid 'Act Agree, it:,

axl-tpt tbst

met tas

tine UillImm.
anl wfth kiritteet

r Jana is 1=0:13,

Your 7; siReerel,y,


lie, 1i thieh


Cable Address.


3rd Sept., 1915.

Benjamin Strong, Jr., Esq.,
62 Cedar Street,

New York.

My dear Mr Strong,

I have not been in London for a good many weeks and have
had no direct communication about the subject of American Exchange
but I have been hearing, in a somewhat partial way from a friendly
Member of Parliament, as to what is going on.

The impression seems

to be that American financiers are taking full advantage of the situation and are trying to get as much legitimate profit out of it as

I said to my friend that I recalled that that was the

attitude of financiers and other business men in this country towards
America when your great war was raging but I had long ago been convinced that they had made a mistake and that it would have been better
and more profitable both on monetary and ethical grounds if we had been
content to make less money and had been animated by a broader and more
generous spirit.

I added that the reverse case might prevail now and

I should be glad if you would consider whether this suggestion has not
some considerable degree of foundation


When I was a young man I

lived for some years with my uncle, Robert Mackenzie, one of the
strongest pro-Americans I ever knew and the author of the best and most
interesting history of America which, so far as I know, is in existence

Benjamin Strong, Jr., Esq.1.



If4Pou have not read the book you should do so and I will see if I
can get a copy of it for you.

All my life I have been doing busi-

ness with America and my sympathies are all with your great Nation.
I have done all I can to promote friendship between the two Nations

and I feel that a great opportunity now exists for bringing them
very closely together.

A great advance in friendship was made when

Great Britain stood by you at the time of the Spanish War.

A still

greater advance will probably be made if you stand by us now and
do all you can to help us out of our hole.

I am not pleading that

business should be done on charitable grounds.

Every business ser-

vice is worthy of business reward, but I hope the impression will
not be strengthened or become permanent which is being talked of in
some quarters at present, viz: that some Americans are caring for
nothing but dollars.

Yours sincerely,


Managing Director.



Cable Address.


16th Dec., 1915.

Benjamin Strong Junr.,

New York.

Dear Mr Strong,

I have kept your letter of 14th September lying

unanswered on my desk, because to tell the honest truth in present difficult circumstances I have great dubiety as to how I
should write.

I cannot, anei certainly do not, however, have the

smallest hesitation about sending you my Uncle's History of
America, and in asking your kind acceptance of it from me as a
Christmas card and a most hearty expression of all good wishes
and kindest regards.

It is sent by book post registered and

should reach you very soon after this letter.

It is a most

readable book and I am sure that you will enjoy it.

I do not

think that I would send it to any of my friends in the South,

because the author was a most hearty Northerner, but in your
case that would be no detraction from the merits of his work,
but rather the contrary.

I have just returned from London and from what I hear
there I am afraid that Sir Edward Holden was not such a successful/

Benjamin Strong Junr. Esq.




full :Ambassador as we would have liked hirh to be, and that he

did not prove quite acceptable to J. P. Morgan and some others
in your City who are good friends to this country.

I do not

know any particulars as to their differences but I regret

I thank you for the very kind expressions of
regard contained in your letter, and am

Yours sincerely,

161 A



DUNDEE 30 April, 1915.


Cable Address.




New York.

. Strong,
I have your letter of the ;I2th inst.


s communication is dated ir6th December, and I

en reproaching myself for the fact that it has
There are various reasons

dso long

neglect of thi

and other correspondence, all of

e quite good.`

I have been absent from the of-

r some week through Influenza, and there are as

w a great many things connected with the war and

ublic d ties to be attended to making extra de-

pon m



time and preventing close attention and
to ones correspondence.

I could plead any

e excuses with perfect truth, so far as you

cerned, but there is another one which overrides

l, viz:- that although I received with gratitude

erature which you sent me on the currency question,

Benjamin Strong,



Benjamin Strong, d]sq.,



because we have always conducted that part of our business on most reasonable and considerate lines.


is also some risk that every bonddealer in the East who

saw our report would be flooding me with circulars and

perhaps sending a dimmer round here.

All that the latter

class get when they come here is civility and cigars.

You remember the old saying that most letters
answer themselves if allowed to lie long enough.


exchange situation has been reversed since you wrote me
and I never had any doubt that it would be.

I always ad-

vised any friend who had money on the other side simply
to leave it alone until exchange had become normal, and
the result has proved as expected.

I think you did

splendidly in acritical time, but then you had the capacity to do it with all your big crops, munitions, etc. as
a basis o


how the position is reversed, and,

I don't quite see yet how we are going to cure

it while the war lasts.

horgan is in London now, and the

papers said that he would take the matter in hand, but
nothing has evolved and exchan :e remains at 4.80 for

Benjamin Strong,




Benjamin Strong, iso.



On the other hand, they won't be quoted at par.
I have not seen Lord Leith since c..ettinfs your

letter, nor have we exchancred letters.

I am very sorry for

him, and there are many other such cases in this country,
which is full of broken hearts and sad homes.

The same is

true of our Allies and also of our enemies.

So far as I have yet apprehended the situation I
think the Federal deserve Bank system is goin;7 to solve

many of your problems and will for ever prevent money
panics and hoardings such as you and I have seen in the

The only danger that has as yet occurred to me is

the risk of inflation, but as long as this is under the
control of men like yourself, it is purely an academic

That is the opinion which I have had all along,

and the quotation contained in your letter of 12th confirms
my confidence.

I do not understand the boom that exists

in the Stock market and have been disposed to agree with
those who think it premature.

On the other hand, there

can be no question that your farmers ought to be prosperous
ewe this year, and in a country
mers that means national prosper


ontains so many farespecially if the

Benjamin Strong, Esq.


Railroads are allowed remunerative rates.


Your foundries

ought also to be making lots of money just now, and their
operatives represent a large section of your people who
if they have plenty money must also be building up the
general welfare.

W_ do not have much money at present

and it is all going into farm mortgages which are exceedingly good, but they are only for five years, and some-

times I think the money might be better in long dated

The trouble is to know what to buy at a rate

high enough to place us.

I had a cheery letter the other day from our friend
Do. Jitt Cuyler.

lie tells me that the Insurance :',ompanies

are going in largely for Short dotes and I rather infer
that they are not caring about long Bonds.

They really

ought to be better judges than I, because they are on the
spot, so we continue puzzled and do nothing but the fart:

I am delighted to receive such a good account of
your father and mother and would like you to remember Le
most kindly to them.

Please include Liss Strong and tell

her that my daughter is very well and is very busy with
Red Cross work.

At present she is in Edinburgh taking a

Benjamin Strong, Esq..



course of cookery and domestic economy so as to be able
to cook nice dainties for invalid soldiers.
I hope your own family are well, and with kindest

I am,

Yours sincerely,





Cable Address.
...-I\TACK EN ZI E, Du N



Benjamin Strong, Esq.,
Hotel Ritz,
Dear Mr. Strong,

I did the American Consul here lest then
justice, for when I get home this morning


on my table, the very Reports which 1 mentioned to you,

and which he has been good enough to briny from &ellington.

I have only had time to glance at theft, but they

do seem full of interesting matters.
Yesterday I called on gr. 7;t1140..m 7;allece,

Manager of the Royal Bank of Scotland, 3 Bishopsgate,

He is considered by his friends to be the

ablest of all the Scotch Managers in.Idondon, and 1 eRrtainly think that the claim of his admirers, Whether
it be wholly correct or no, certainly rests or a solid

I had some talk with him about the ex-

change matter that we discussed.

He says the ;Jordon

Bankers who are in that business will resist the transference of any part of it to Hew York strenuously, and


Benjamin Strong.
that one reason for this proposition is the fact that
they fear that whatever once leaves them will never
come back again, bat if they thought it would return
in whole or in part after the war Is over it might
conceivably modify their objection.

He then asked

me "who is this 7r.. Strong about whom / hear so much",
and after I had given him a short, and. you may be sure

not unfriendly account of your good self, he said very
heartily that he Has very glad to hear that the 4:.mer-

leans Nere putting the important business of the deserve
Bank in such good hands.

I then asked him if he would

like to see you for a few minutes, to which he responded

Thereupon I promised that I would ask you to

look in some day when you were passing.

I did this

in order to oblige him, but subsequent reflection makes
me think that possibly I may be obliging you, for in
your study of banking you cannot very well omit the
famous and much praised Scotch system, whicl-, whatever
its faults .flay be, certainly Ibes its work
very well.

If you wish to extend your studies in this direction

you cannot get any better exponent than Mr. ,;allane,
and I am sure he will gladly give you any facility. Of

pen4amin 3trong


course you will only get a part of their businees in London
and it may be that in order tc complete the circle of education in this Department you might have to come to 3cotl4nd.
I do not require to assure you that we will be greatly
pleased if things should turn out in this way.
Yesterday afternoon before leaving .;,D24,on,,I. ag;_led

on :re. Baton.

what deaf.

I found her very well indeed, 'but seme-

I also saw her daughter,

Mott. and

grand-daughter, Constance 3cott,- a pair of very "handsome

They were delighted to see me and exxrmad warn

appreciation of what they were pleased to call my i;inAness.

I carefully abstained from mentioning the fact of,ypur
being in London in case they might expect you to look them
up, but if that should be in harmony with your convenience
and desire,

I am sure that judging from my own experience

and what they said about another friend, your visit would
be appreciated.

The address is 4 Stanhope

Let me say that my evening with you a1d give me
a great deal of pleasure, and that I did enjoy our meeting

Yours sincerely,






Cable Address.

M 2G 199


Benjamin Strong, Esq.,
4100 Kontview Boulevard,

Dear Mr. Strong,

I duly received your letters of 2nd and 8th
December last.

I am bound to begin by admitting that

this long delay in answering them does look like neglect,

but I do not think you will suspect me of any such crime
against our friendship.

The opposite is really the case,

because I appreciated your letters so much that I was in no
hurry to answer them and reserved them for perusal by some
of my Directors.

Then, in January I had the misfortune

to be attacked by influenza, 71hich made a big break in my

attention to correspondence.

Mrs. Mackenzie got ill at

the same time and is still confined to the house.


thankful to say that I am now really very well, but my arrears are not yet entirely overtaken.
I am indeed_ sorry to hear of your illness, and

do most earnestly wish for your speedy and complete recovery.

Benjamin Strong, Aso.




My daughter, who has returned from Rumania and is proceeding
to France shortly, has been in correspondence with Miss Strong.

but I have not in this way heard anything about your present

I should be glad to have a few lines from you,

and sincerely trust that your news will be good.

The international finance situation has now so completely changed that any ground for discussing it on the basis of
our former letters is removed.

I am very sorry that your

country has the terrible agony of warfare imposed upon her, but
I am at the same time delighted that she should be our Ally,

and that we and France who have fought so many battles onyour

are now associated with her in a glorious Trinity

for the defence of liberty and the rights of humanity.

We all

read the Presidents Speech with great approval and regard it as
a strong and yet temperate declaration.

I think with the whole of it,-

Mile I was pleased

I took special notice of his

declaration of readiness to support us financially.

That will

straighten out a great many problems and certainly ease the
difficulties of our business.

Thanks for what you tell me about South American currency;
the details are very interesting and are in the right direction.

Benjamin Strong, Esq.



They do not weaken but rather strengthen the conviction :;hick

I have had for a good many years, that we, and also other markets, should adopt the dollar as our standard like Canada and
Uncle Sam has always made his national Debt free of


all kind of tax, and it is because his practice seems to have
been successful that I have felt we ought to adopt It as a

7hile I admit the force of what you write on the subI still adhere to the conviction that on the whole and

in the long run our Treasury would. do better if they followed

the example tested by Americcn practice.

Cur late 7/ar 'Loan

was a magnificent success, but if it had been offered free of
tax of every kind on exactly the American lines, I believe the
whole of it could have been got at 4:-.

I am very sorry I cannot have another evening with
you, but hope before long that will be our mutual pleasure.

ith kindest regards and best wishes for your syeedy
and thorough recovery,

I am,

Yours sincerely,

..vianaging- Director .



Cable Addrees.

DUNDEE 10th January, 1918

Benamin Strong :ask...,
Fe.:ieral Reserve Bank,

row York.

Dear 1r Stron,
Occasionally I see your name referred to in
the newspapers and always in terms of respect that evidence
the very honourable and influential position your merits have
earnel for you, but there is nothing about your health.
would like to know how you are keeping and how you are standing the strain of resumes work. Have yo:' completely subdued
.our illness and are you keeping it at a distance suite outsideyour tabernacle of flesh? I am sure your spirit continues full of devotion and your mind is as diligent as ever
in discharging ;,hatever work duty may impose upon you.
should be very glad to hear from you and hope that when you
are at leisure you will give me a few lines. Where is your
son and what is he ,Loing at present? My daughter is on duty
with the Y.M.C.A. at Dunkirk and according to a letter which
I had yesterday she is very well and happy in her work. I
am sorry to say that from the newspapers I learn there have
been a good many bombing raids but apparently she has got
I admire
accustomed to these and is not incommoded by them.
her courage but all the same I will be pleased when her period of duty is over and she is safely home again in this

Jith kindest possible regards and best wishes
for the Yew Year.

Yours sincere ly





Cable Address.


21 Teby., 1916.

Benjamin Strong, 11;sci.,
Ecuitable Building,
few York.
deer :Ir. Strong,

I have just received your letter of the 29Th Jany..
and am excleeingly sorry that you cannot give me a thoroughly satisfactory report about your health. V This is a great
grief and disappointmtnt to .ne, and I offer you my sincere
sympathy and best hopes for a speely and complete convalescence.
I wish you riould give me the full address or your
son Ben in ?ranee, because I might ask my daughter to look
him up if he is in her neighbourhood.

I have just read an article in 7radstreets about
the great success of the Federal Sank system, and beg To offer
you and your associates my best congratIllations.
You really
have built up a marvellous edifice and have done it in a very
short time, and in so far as I can judge, a thoroughly substantial and permanent way.
You might instruct some of your
people to send me a copy of the report upon Thich the article
I have just referred to is based.
7iith very kindest regards and best wishes,

I am,






A- A0 i .:



, t.





3enjamin Strong-,



familiar, and with which we are accustomed to struggle on the
whole successfully.
Every farm loan is an individual entity
and requires individual consideration by honest men of experience as well as local knowledge, and I do not see where the
System is going to get the requisite personnel.
I am told
that the qualification of a good many of the men appointed to
run what is after all a retail business of laborious detail, is political.
If this is correct they are sure to accomplish serious disaster before experience has brought the
necessary skill.
Now please do take care of yourself and apply your
mind to your own health as a matter of business.
I have
another dear friend in this country who had
and _ho made himself quite dell by deliberate care and attention.
gradually, however, his devotion to business and his
work helping our lax Office in connection with the volunteers
and other matters, proved too much for him and the doctors
have sent him for a six months rest in the open air.
I saw
him the other day, and am glad to say he is making good progress, having gained eighteen pounds since January, but he
said to me that if he had taken care from the beginning his
health mould have remained good and he would not have had this
unexpected and regrettable relapse.
I am mentioning this as
an example, and do urge you in the most friendly way possible
to be careful.
Yours very




incerely. Al


*2 2








Benjamin -,trong! Lac'.



in, viz: your own health tang I am wond,ring nether you have
achievel as compl to success in its reestablishment as in
building up your Bank.

I have had two or three letters from your son and
hope that before he goes home we will have an opportunity
of seeing him.

I was reading an article the morning in an 1Lmerican
newspafer about the great difficulty 7r -c,,doo has in
stabilizing the Libery Loan. I notice tIlt,t the
tty free
keeps round about par, while the others bearing 8 higher
rate of interest but with smaller privileges are sag?:ing
in t':( alarket.
Dar e:,:erience in this country is on an
exact p8rallel to you and on thinkinn: it over I am remindel
of a I ventured to preach to you the doctrine that
time then
l qovernment leans, whether on our side or .)urs, should be
solutely free of tax, both income and death duties.
lieve if our Goverment had adopted this policy it aouid
ve pulll them in the longrun and the7 inif2ht never have hal
pay nore than 4. They are now netting a smell premium
the issue of the tax free stock at this rate.
Of co-rse
know that arithmeticians in our Treasury have figure
at there is antnnuel loss on tax free loans but that is a
nor consideration.
The main and important oint is to have
free market and I am quite sure that if that be obtained
will pay the Treasury handsomely eventually, even if it
volves the annual loss of some interest.

please let me hear about yourself 1-rid with kindest
;:ards to you and yours,

I am,
Yours sincerely,





Cable Address,


Benjamin Strong, Esq.,
Federal Reserve Bank,
1Tew York.


27 Septr., 1918.

OCT 14



I was duly favoured with your letter of 8th ulto.

written from ...roods Hole, :'ass., where you had gone for a
holiday, '.rich I am certain was well earned. I wish I had
the same certitude about it having done you good, and earnestly trust that your health while there improved as much as I

and all your other friends desire.

Thanks for your enquiry about my daughter. She
seems to have settled down into country life admirably End
he writes me now and again about farming matters

carried on by her husband and his partners, and recently sent
me with great satisfaction a sample of this year' s wheat crop.
It certainly is very good and has been very much admired by
all the friends to whom I have shown it.
ja.s to the Federal Bank Scheme ani the magnificent
co-operation between the two countries, I expressed myself
fully, deliberately, and, I hope, adequately when I occupied
the Chair the other day at the Annual .Zeeting of The Western
Hawaiian Company, - a small :7ortgage Company which we have
taken over. I enclose herewith a copy of that speech, and
will be gratified by your kind perusal thereof and trust that
the reference which I have made to yourself personally will
be entirely agreeable to you.
I am very pleased and interested to read what you
tell me about Ben's history. It is all new to me, for in your
communications to mme fl)out him heretofore you have just taken
him up at the point where he was and told me nothing about his
I have sent him another package from the tobacantecedents.
conist, but have not yet heard whether it has reached him.

Benjamin Stmt Esq.



*Benjamin Strong,





'.7ith kindest regards end. any thanks for the most friendly messacres contained in your letter,


Yours si nc erely,


Following elail Copy.

3C Ootr., 1918.

Benjamin strong, Lsq.,

Federal Reserve Bank,
Lea York.



T see in the American Journals a good deal of

lieenssion which finds its text in the fact that the
eiberty Loan lei standing at a small premium and appears
to have n free market, whi le all the °them tyre at a disneere,..
s state of efinire irAE arrested er.

Leeloo's 13erioes consideration and an attempt has been
from all taxes except

made to meet it by exempting $3C, O:

death duties for a period of two years after the war. The
excrete:, of this privilege gives the right to certain extension in the n4i. sting loe.n,- apparently $43,00e. Then
there es an oxemptiton of t'aCee I think, bet that I are not
quite sure about. One pacer says that de this way a man
can hold. `3:,
Liberty Loan on exactly the same footing
as the
Another parer argues that if he knows how to
work the thing he could probably increase the amount considerably, either by utili sine the individual members of
his family or a circle of his friends, or otherwise.
do not know enytleing about thee end cannot express any
opinion, but when I recall -what came under my observation
in the old days es to the utilisaticn of Uncle ea' Bonds
for ceouring exemption from taxati on, 2- would not be sur-

prised If in some way or other these privileEee which I am
now liscuesing can be secured on a large scale. I remember
urging our friend Sir Hardman Lever, to try an issue in
this country free of taxation. I think some eondon leaders
of finance, who are theoh better acquianted with the subject
than I and :nude more influential, spoke in the same -way.
The result was the evolution of a sort of hybrid thing which
neither enjoys complete freeem nor is subject to full taxation. Your people seem working the same way. eith all
deference to the influential authorities on both sides of
the ,cen, I think these pottering compromises are a mistake.

3en,lamin Strong, psi.




If the idea of tax-free issues be sound it ought to be tried
in its naked simplicity without any coinilioations or limitations. I am not expressing any opinion about the political

and sentimental considerations which you have mentioned to me
because I am quite uninformed on the subject and. write with
great deference, but the more I think of it the more I am convinced_ that on purely business and financial grounds it would

pay our Governments beet in the long run to try a clean cut
issue of absolutely tax-free Bonds. If they had tried. this
at the beginning I think they could have succeeded on a
bacis, and I believe that your Government could probably
Of co arse the narrow offi ci al whose only
manage it even now.
standard is ex; thew tic would prove that there is a money loss
in this. even if he be right, that Is not an important consideraticu; the great thing is to have a big free learket and
an abundant outlet for the Bonds whether by private sellers or
it is
by the Treasury. That has got to be peeil for hee.
acoompliened, end I think freedom from taxes will prove the
cheepeet in t'ee end, becaenc it is to be hoped that during the
lifetime of tae zonds, taxes won't be ee high nor the credit
L. fee,y,eare hence I am
of 'Governments cost so much money.
rate firmly
sure the ereasery would prefer to have a
established and that it would coe t less to pay Val s amount
free from tax than 41, subject to deduction thnreof.
I am afraid I am getting rather faddy about this, but
I happen to have very ctrorz convictions about the mistake that
our government made years and years before the war by deducting.
tax from Consols held be foreigners and everybody, and also by
cancelling the exemrtione ehich foreigners had heretofore enNavin.; these views I ac afraid T have taken to preachjoyed.
ing on the subject, but hope I do not bother yoe too much or
that you will consider your old friend too garrulous.
By the way, I have a letter from Lord Leith in which he
tells me that he is exceedi nely well. hie will :lake you and me
think of cld days.
Yours sincerely,

anagi ree :Director



2enjamin strong,




that direct taxes operate in exactly the same way, and I do
not see how that can be disputed so far as business is concerned, for whatever the prudent merchant or manufacturer
has to pay by way of taxation is included in his oncost.
is impossible to get any kind of tax which hits everybody
Here is a homely instance which will serve to illustrate what I mean:- The electric route by which I travel alpost daily runs for six _ailes, and is divided into three stages,
which in pre war days were charged ld, 2d and 3d per journey
To cover increased costs, an addition of a id
was authorised, so that these rates are now 11d, 223 and 3.0.
You will observe that in the first case an addition of 50% has
been made; in the second 25 %, and in the third 16%. llow, this
on the face of it is a gross arithmetical injustice, but how
can it be avoided, and is not the same true of every other taxation question?
I entirely sympathise with all the sentimental and political arguments which you present, but I cannot judge of them becase I am not on the spot.
I do feel, however, that if vie base
important action on such reasons we will go wrong somewhere, because after all the ultimate control is with the actual facts of
the case.
If Congress acts on sentiment it
eventually prove
that it cannot over-ride the laws of the universe.
That illustrious body created twelve Federal deserve Banks because they
did not want to see I:ew York become the financial centre of the
Republic, but is it not the case that things are developing in
that direction, and whatever useful functions may be discharged
by the other eleven institutions, Uew York gill be the boss all
the time?
The business situation that I want to get at in my
mind is a free market for Liberty Bonds.
I think that is of
I see
great importance now and will be more so in the future.
Bonds sell about par, and that all the others are at a
I ask myself why the investment that gives the smallest
I the not know and can only guess,
do best market.
return has
but it seems to me, so far as I can judge and the information
that reaches me, that the explanation may be found it its taxThere may be some other reason ::hick does not
free privileges.
appear to me, but evidence reaches me almost daily of the efforts that are being made to sustain the rrice of Liberty Bonds
other than the 31%, which seem to support themselves.
would seem to point clearly to some intrinsic merit which is
peculiar to this issue and is not possessed by the others. I
should think that when the next issue cotes these difficulties

Benjamin Strong, :sc.,



may be enhanced, and it might be that they could be avoided
or minimised if the special merit possessed by the 31s could
7hile I cannot follow or appreciate all
be made available.
that you say in your letter of 22nd Eovember, I do admire and
appreciate the lofty sentiments by which you are animated and
your desire to do full justice to democratic princi!les both
in finance as well as in government.
I also a
foresight in adverting to the factors that will prevail a
few years hence, because undoubtedly the finance of the Civil
War was lacking in this respect.
for the country if they had not given so many long.-dated Bonds
which they had to take up at a premium and had reserved elastic
I cannot too frequentoptions in the hands of the government.
ly emphasise that I speak with great deference and in full knowledge of my ignorance, but it does seem to me that a
with complete freedom from taxation might solve the market difficulties, -rhich have struck me,but in which my interest is purely academic and public-spirited because I do not own a single
Federal Security,- all that I have done in that way being of
course, as a matter of duty, made available for the British
Such a Bond should carry options in favour of the
It might run, say, for 20 years, but be payable at
any time after five years in the option of the government on
giving, say, 12 months notice. This would prevent it going to
a premium and would allow the Treasury full benefit of a happier
circumstance which we all hope will prevail after we have had a
few years of peace.
I am rather ashamed of myself bothering you with this
academic epistle and only do it because of the encouragement
of your most friendly letters and my admiration of the patriotic
spirit by which they are animated.
With kindest regards and every hope that your work may
not be too much for your health, and that you may have the
greatest possible success in all that you do for your own country
and for the other Allies,

I am,

Yours sincerely,




Managing Director.



Cable Address


;Lpril, 1919.

7enjamin Ltronp.,
17ederal 7eserve Bank,
rew York.


Your letter of 19th Febr ary written from Lake
George came duly to hand, and also t.e literature you were
good enough to send me.
I am actiEP on your advice to take
care of myself, and am leaving in J day or two for a rest.
3efore leaving I am clearing wr s e arrears that 'lave accumulated, and amongst them is the 1= ter now acknowledged, because
really my mind has not grasped v'e abstruse calculations and
arithmetical problems which it resents for consideration.
T entirely agree with the humanitarian sentiments
::hick you exl:ress, and have b en -::orking at philanthropic pro-

blems, at no small cost to m self, ever since I was a boy of
fifteen and my father start d me to teach a class of youngsters
in the :ission School atta el to his Church.
I think our
very rich people are to hl me for a great ..aany things, and I
think in many cases their ostentatious .ode of livinF is bad
"or themselves and highly calculated to stir up animosity and
mi,s7ht f nd ex-frees-Ion in very hurtful methods.
thoroughly wi'n yo, in desirinii, the bettennent of our
4orklnz classes, but it is not going to be accomplished by
rauperlsinz a few
onaires or preaching sermons, however
well-founded they may e, against the idle rich.
7nless a
man is inerirel by a ense of stewardship and dispenses his
wealth wisely and genronsly, he is better without it. I think
there are many of this class in Lmerica, and I rejoice in the
examples of 7enerosity which are so common in your country. e
have P.ot to be practical, and as my father's teacher the great Dr.
Chalmers used to say, we cannot accolplish any great or universal improvement except by moralising the individual.
I once
heard Dr. 7,enry 7;cod Beecher leliver a lecture in this town
he called the "Reign of the coon feople",which, while




i3enjamin Stronz,




rich men _liberty Bonds free of tax, what about the Farm Loan
Bonds offered at 5; which give him even greater facilities in
this direction and are only intended for the benefit of one
class, although it is a large and important one?
I am told
that the dwellers in cities who are largely interested in
Building Societies, now desire the a2plication of the Farm
Loan System to their affairs.
'There are we going to stop?
As you know, I write about all American affairs with great interest and deference, and am only putting these things before
you tentatively In a conversational way over a cigar.
I cannot arrive at any definite conclusion on the subject, excepting this, viz:- that however it may be in A.:lei-lea, it would
undoubtedly have been a great deal better in this country if
our Government debt had been absolutely free of tax from the
very beginning.

I am very glad indeed to shop any little kindness I can
to your boy, and hope that we will see him here before he goes
I have rather lost touch with him, and would be glad
to have his address, because it would give me pleasure to sand
him an occasional box of cigarettes.
I do trust that you yourself are well, and with kindest
I am,

Yours sincerely,

Managing Director.

I have a letter from my old friend
Frank Trumbull,
from which I learn that his doctor has asked him to lead a tranquil life for a while, and that he is to be at Green 400d Gate,
VIithyham, Sussex, England.
I certainly hope to see him, and
am always harpy to have the chance of a crack with you and him
or any other American friend.





















VG. 0(-ir-e





) 're%

eil%,4-%^ 04j4

















clic( c--ke_

17_ect14.5a /4,k(








(wic.e: 25 April 1921.



Benjamin Strong, Esq.,
15, Nassau Street,

any dear Mr Strong,

I am delighted to receive your letter of the 7th inst.
I rio most earnestly trust
that you will continue in that condition and will have no
further occasion to follow what Carlyle calls "a peregrinty
in pursuit of health". You certainly have had a good deal to
do in this way but you are well worth all the time and trouble

and to know that you are now so well.

involved both for the sake of those who love you among whom
I may be permitted to include myself and also for the common


You know about the portrait which 7,- friends connected
with The alliance Trust Co. Ltd. did me the great honour to
paint. It has been copied by a photogravure process and is
considered a very good piece of work. I sent some copies to
Mr Henry A. Jones, 511, Bryant Building, Kansas City for die:
:tribution amongst American friends and by this mail I have
written asking him to send you a copy. Perhaps you will be
good enough to accept it from me as a token of esteem and
a reminder of the days in which we have been so happily associated.
I am glad to know that your Mother and your Sister
both enjoy good health and will be glad if you will kindly give
them ms remembrances and kindest regards. You might tell them
that we are expecting a visi t next week from my Daughter, Yrs
Dean and her boy, Patrick William Mackenzie, who is now a year
oli and a fine healthy boy.
I hots what you say about financial conditions. They

certainly are distressing, especially the attitude of working
people. Lc' they would only be diligent, we would soon solve
all our di ffi culties and it 5s very alarming when one begins to
estimate the great loss which this recent Miners' Strike means
both to the strikers themselves and to their victims.
I would like to have a talk with you about some of my
investments but the only one that I will trouble you with at

present is my holding of Common Stock of the 2ennsylvania RR.


Benjamin Strong, Esq.,


It cost me about 465 a share and you know the present
Sometimes T think I would like to average but again
rumour reaches me that this splendid institution is in
and we are told that some people expect it to go the Barre way
as the :sew York Central.


With very kindest regards and best wishes,

I a m,
Yours sincerely,

(JY alea


12 August 1921.




Benjamin Strong, Esq.,
15, Nassau Street,
My dear Strong,

I am sure you will give me credit for having been
a punctual nnd prompt correspondent during all ey years of
business activity, but however a.00d or however well-earned tha
reputation mar have been, I am afraid .that T have fallen from
that high estate and hae acquired a new reputation for being
dilatory and in so'ne cases entirely neglectful. I teve been
clewing up some arrears and find your letter ;f 9th Mar.
.pot that it has lain in my box for such a long time 19 noevidence of neglect but on the contrary ol! appreciation for
preserved it for
If I had not valued it, I should not
future consideration.

Many thanks for your kind enquiry about my health.
I am thankfal to say I am really in splendid condition physica
and most of my friends think I am looking very well.
headache, however, which started nearly threo years ago still
I have consulted fifteen doctors about it and
I do not
none of them have solved the problem of its origin.
suppose, however, that it will interfere with the long years
of hapoinese which you were good enough tg4eish for me but it
T do very
does impose upon me the necessity for going slow.
little work and stay Vex: closely in Dundee and ""Jareeraig".
I have not been in London since November 1319 and have no desi
to revisit that City and mach leas a place so far away as New
I regret this very much because I know what a cordial
welcome I would get from your goodeelf aria other American fiie

I am gratified by your kind appreciation of my Portr
and by the honoured place which you are giving t in your gall
The next time you are in Great Britain, I do hope you will fin
time to come down here when I will show you the original paint
,4hich is really a splendid place of work.

I am still a member of the Golf nab but I eannot at
present promise you a game for I have not lifted a club for ov
three years.
I still have the wooden-faced club that you pres
me with end I recall with pleasure some good otrokee I made wi





Benjamin Strong, Esq.,




Thanks for what you say about Pennsyl-rania.
I have not
done anything in this or any other inveetment and perhaps it is
just as well to let things sieer for t While. every now and
again I drop a tear over the depreciation of may ireeeteents, but
that does not hurt me and is only an evidence of the existence in
my mind of scme element of Balfourien philosophy.
At the same
time, to be serious, I must confess that eome of the depeciatione
are very serioes and quite surprising, as for instance, Ponnsyl:
:eania Stock and some o.!' the Amerioen Btreet Railroads, mainly
in New York.
I am eery g, ad to 1-now that your Mateer end Stater are
in such good Yeelth and that they enjoyed their visit to Cape
I am seee ;oar Sister would find many things there to
interest her active mind.

I thin': it i a a good thing to send your on to London
because, as you say, there are things there which cannot be
learned elseWeeee and it completes the eirceit of his training.
We used to hear a great deal about ner York supplanting London
as a world centre but that kind of talk i2 not: now 14 evidence.
I always beleeee that American Bankers will make dollar exchenge
oeerative on e7. lerge scale an0 that the historical upshot rill
show that just as Ameeica and Greet Britain ought to oe good
friends and rule the world between them so London and Mew York
will each sukelement the other and eo-operete on fiendly lines
thus performing a great work of financial efficiency for the world.
Here es are all puzzling about the future of our exohange, but
in the absence of any powerfUl interference by Government or
Bankers, I do not see anything to put it up.
internationel aeran3ement about which, of °puree, I no nothing,
but if exchange be left to itself, I do not see how it can improve
until after your ()foes are all cold and theetealeo Mb:I be applicable
to next ynar as well as this.
With the vere ':irdest
to you.- Mother end Sistfe

poerible to yonlcself and


Y011213 sir e- ly,



P. S. My very good friend and highly esteemed successor, kr
1777. Macdougall sails for Canada on the 27th by the SS. "Megantic".
I have asked him to call
He will be in New York before very long.
upon you and have assured him that he will receive from you some
of that sunshine of hospitality which it has always been my good
fortune to enjoy. If you can help him in his studies of the Exchange
question, it will be greatly appreciated by all of us.

Telegraphic Address.




APR 10


31 March 1922.



3enjamin Strong, Esq.,
13, Nassao. Street,

fly dear Mr Strong,
I have been wondering for a long time how you are
keeping, not having heard for some months and have had it
in my mind to send you a letter of enquiry. This purpose
is brought to a point because my Daughter, Mrs Dean, Mere
Tall, Lincoln has sent me the enclosed, with a request that
I would have it forwarded as promptly as possible, to Miss
Strong. As I qo not knew lass Strong's present address, I
eliclose it herewith and All be obliged if you will transmit
it to her at your early convenience.
I hope she and your
Mother are very well and will be glad if you will kindly
give them my kind regards. When you answer my query about
yourself, perhaps you will also let me hear about them.

It may interest you
hero tomorrow morning with
and we expect to have them
will bring a great deal of
our house, for my Wife and.

to know that Mrs Dean is arriving
her Son, who is now two years old,
with us for some weeks, which
sunshine intc the solitude of
I arl now quite alone.

Yours sincerely,



Telegraphic Address



21 November 1922.

Benjamin jtrong, Esq.,
15, Nassau Street,

dear LT.. Strong,

I have not heard a word about you for many a day
and our friendship is so old and I have so few friends now
surviving on your side of the Ocean that my desire to be
in touch with your goodeelf becomes warmer and the heart
grows fonder the longer I am without news of you, so will
you please either write me yourself or get your Secretary
to favor me with a bulletin?
I do trust you are
and able to perform all the duties which your high and honor:
:able position impose upon you.
I would also like to know about your Mother and
Sister and will be pleased to be remembered to them when an
I am deeply saddened by the
opportunity presents itself.
death of Mr. De iiitt Cuyler who was a very good and very old
He was seven years my junior an/ here he is out off
suddenly and so to speak in the twinkling of an eye. He had
achieved a great position for himself and was really a most
efficient servant of the commonweal.
I amilfraid his work
had been too much for him nnd that he really died a martyr to
I had not seen him fors great many years, but his door
was always open and 'never wrote him - which was very seldom without getting prompt and relevant response. You must have
had a great deal to do with him in many ways and I am sure
you will be feeling his death even more deeply than I do.
';'ith kindest regards and best wishes for the New
Year which will soon be here,

I am,

Yours very sincerely,

eiZe,n Wt.e e.


vn a


10th August, 1923.

Benjamin Strong, Esq
Federal Reserve Bank,
15, Nassau Street,
dear 1 11..


I have not had a word from You or imposed any
letters upon you for nearly six months but the other day I had
a call from our old friend, Mr. Dallas Pratt who was kind enough
to come to see me and to give me quite a long section out of the
time avallalle during a very short visit to this City.

I was

asking him alout you and other friends in rew York and found that
he had no recent information about your health.

I have therefore

come to the conclusion. that, to use the Scotch language,

better lose no more time in "speirin' for ye".

I had

Will you therefore

be good enough to let me have, at your convenience, a few lines in
answer to this letter and to tell me how your mother and sister
are keeping, to whoY, please remember me most kindly when you are
in touch with them.

My daughter and her son were with us for some weeks
quite recently.

They are both very well and the latter is a fine

sturdy, alert youngster of 31 years.

I do hope to hear that you are as well as I would
like you to te, and with kindest regards,



Yours s

paristI Tintrcli of pultber


z a)



0 fflio



2 Z
2< 0
_I 2




President of the United States of America.


FRIDAY, AUGUST wth, 1923



Chop i,




HYMN 149.

ROCK of Ages, cleft for me,
Let me hide myself in Thee ;
Let the water and the blood,
From Thy riven side which flowed,
Be of sin the double cure,
Cleanse me from its guilt and power.
Not the labours of my hands
Can fulfil Thy law's demands ;
Could my zeal no respite know,
Could my tears for ever flow,
All for sin could not atone ;
Thou must save, and Thou alone.
Nothing in my hand I bring,
Simply to Thy cross I cling :
Naked, come to Thee for dress ;
Helpless, look to Thee for grace ;

Foul, I to the fountain fly-

Wash me, Saviour, or I die.
While I draw this fleeting breath,
When my eyelids close in death,
When I soar through tracts unknown,
See Thee on Thy judgment-throne,
Rock of Ages, cleft for me,
Let me hide myself in Thee.
1st CORINTHIANS XV., vv. 50 to 58.
REVELATION vii., vv. 9 to 17.

The Rev. J. WILwRarrn, B.A.
(Invocation, Conversion, Supplication, Commemoration.)
The Rev. J. WsrrE MAcGirz, M.A.
In respectful remembrance of President HARDING.

The Congregation standing.



(Intercessions and The Lord's Prayer.)

PRAISE-HYNN 237-Sung at President HARDING'S Funeral.

NEARER, my God, to Thee,
Nearer to Thee
Even though it be a cross
That raiseth me,
Still all my song would be,
' Nearer, my God, to Thee,
Nearer to Thee I '
Though, like the wanderer,
The sun gone down,
Darkness be over me,
My rest a stone,
Yet in my dreams I'd be
Nearer, my God, to Thee,
Nearer to Thee !

There let the way appear
Steps unto heaven,
All that Thou send'st to me
In mercy given,
Angels to beckon me
Nearer, my God, to Thee,
Nearer to Thee 1

Then, with my waking thoughts
Bright with Thy praise,
Out of my stony griefs
Bethel I'll raise, So by my woes to be
Nearer, my God, to Thee,
Nearer to Thee 1

Or if on joyful wing
Cleaving the sky,
Sun, moon, and stars forgot,
Upwards I fly,
Still all my song shall be,
' Nearer, my God, to Thee,
Nearer to Thee ! '





The Congregation standing.



2:4-01422/ t7-





4th October, 1923.

Benjamin Strong, Esq.,
Federal Reserve Bank,
15, Nassau Street,
My dear Yr. Strong,
I have your letter from Colorado S,itirings, dated
10th September.

I am very sorry to have my fea s confirmed that
your health had not been as good as we ould all like it
to be but am pleased to know that you re able to return
Rowever much your vele may have been
to New York.
effected, your letter chews very cl rly that neither your
pen nor the kindness of your heart. ave been impaired in
Your writing s just as good as ever
the very smallest.
and the envy of myself and other who are not any better
Your letter is certainendowed as caligraphists than I m.
ly very kind and the heartines of its friendship has gratMaladies of the
ified myself and any family ver; much.
throat are certainly very con rolling and limit the patient's
In A it and May I had a five weeks'
activities very much.
but I am thankful to say that
siege of Cellular Pharyngit
d Dr. !Lathers, our local
treatment by my own Medico
That was a very small
Specialist, was entirely s ccessful.
affair compared with your months of illness but. it enhances
my sympathy for you and y appreciation of the patience and
am sure you carried your troubles.
the courage with which
I enclose c py of a letter of introduction to
Carlyle GifJ.ord and his travelling companions.
will be most
have told them of yo r trouble and am sure they
are, as usual, a very busy man or are
If y
still short of tha perfect health which we all desire for
you, please do no hesitate to tell them and turn them over
to one of your 1 eutenants.


I am glad to hear of your mother and sister.
My 'wife and family are
Please give them my kind regards.
very well.
With kindest rep-ard and one more cordial at-rFc.
iation of your friendly letter,
I am, Yo r roet aince ely,

tors. 4-4/

28th Septr., 1923.

Benjamin Strong, x;sq.,
Federal Reserve Bank,

k.y dear /4.r.


I was very glad to receive your most friendly
letter of 10th inst. and hope that ty this time you are
back to 1;ew York and feel perfectly fit for business and
are not attempting too much.
I am to take advantage of your friendly door
which is always open to me to introduce to you Vr. T. J.
Carlisle Gifford, V.S., 2dinburgh, and any of ids
travelling companions by whom he may be accompanied when
he is there to wait upon you, namely, Ur. J. Kenneth
Greenhill, Lecretary of The Alliance Trust Company, 1.r.
G. Oimpson, one of the 1.irectors of The 1nv-storsl
Lortgage Security company and 1..r. R. F. k,hepherd, who is
a member of the Firn of '0,essrs shepherd & Wedderburn, W.S.

Gifford has written some articles on
Financial and Currency Problems which I have read with
interest and with admiration of his facile pen, although
not always with acquiescence in his views.
is a keen student of these matters and wiith a view to his
own education and, therefbre, the benefit of his friends
here, he wishes to get into touch with parties on your
side who can offer him the illumination of which he is in
I commend him to your good offices when there
and also his travelling companions.

I am,

Yours sincerely,


chef ;



Telegraphic Address,

Aqw04,2 December 30, 1924.






Benjamin Strong, Esq.,
Federal Reserve Bank,
15, Nassau Street,

My dear Mr. Strong,

Not very long ago I was reflecting that I
was getting out of touch with you and that I really ought to
be writing.

Before I had time to accomplish anything, in comes

your beautiful Christmas Card showing that I still live in yolir
friendly memory.

I am delighted to hear from you and recipro-

cate cordially all your good wishes.

I hope you are enjoying good

health and shall be pleased, at your convenience, to have a few
lines of assurance from you.

Personally, I am feeling a good

deal better than I was when they put me on the shelf and am attending to a good many things.

I come up to the Office in the

afternoon, about four or five days a week, but I always lunch at
home and do not face the day until I have had a comfortable
breakfast in bed.

I would dearly love to have a crack with you
because I would always find it informative as well as friendly.
I see Exchange goes up but that does not affect me personally
because, some years ago, I made up my mind to keep as maoh money
in American Dollars as possible and was not tempted by low sterlin
to bring money home.

Some people think I have lost money by


Benjamin Strong, Esc.



this but you will agree with me that, at all events, in the
American Continent there is a sure bottom.
the probable future of Exchange.

People diseuss

The view which / express

to them is that its price represents depreciation in British
money and that until our currency goes to par on its own
merits, Exchange must fluctuate.

Speaking from memory, I

do not think the American Dollar was at par in sterling until
the paper Dollar was at par with its gold equivalent.
When you write me, I shall be glad to hear of

your mother and sister, and so will my daughter who would
be glad to

join in sending kindest regards and best wishes

if she were here.

Yours sincerely,

Gal ovvIl
A certain element of excitement is
now entering into the relations of the

vtt' %4A-4.kftV

sovereign and the dollar. Since 1919. )se an article from the "Advertiser" of this
when the exchange was " unpegged,"
the once proud sovereign has ranked 'Sovereign v. Dollar, which may interest yon.
far below
dollar, but a the
approximation has been taking place.
and yesterday it took 4.731 dollars to

equal the sterling unit. A year ago
4.201 dollars could purchase a pound.

It is now well within the region of

probability that we shall soon see the

pound hack to its normal parity of
4.86 dollars. It may even rise to a

premium, in which case great, indeed,
will be the astonishment and chagrin
of New York. It is a fine question,

over which the experts might debate
for an age without reaching certainty,
whether the process now going on is
one of rise of the pound or fall of the
dollar. Whichever it may be, it is

a good thing for Britain in her modern
character as a debtor country.


r/niZe/ Febrnary 12, 1926.


Benjamin Stro-.aE,

Federal Reserve Bank,
15, Nassau Street,
New York.
My dear Mr. Strong,
I have today receiv

letter from my good

end affectionate cousin, Missimily Leng, in which she tells
me that she is coLing home/


In that letter she

makes reference to your food self which I thial: you will be
pleased to hear.


erefore make the following auotation

from her letter:-

"About ten .sys ago I spent a very pleasant evening
To tell you the
with your .,riend, Mr. Strong.
truth, I ether dreaded it, for I thought he would
But I really enjoyed
be mich oo clever for me.
myself nurmously for he is so kind and so interestI have been meaning to tell you how much I
enjoyed myself ever si.ace."
As I know you did this for my sake,

I must los-)

no time i, thanking you very warmly for your kindness to her.
I hesita ed at first to trouble you about her because I know
how bus

you are, but when I found she enjoyed your hospitality

and her intercourse with you so much,

I am passing her vote of

thanks on to you and -psociating with it my appreciation of


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