The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
MIBO 13.700-2-20 FEDERAL RESERVE BANK OF NEW YORK CROSS REFERENCE SHEET FILE No. ........ ...... SUBJECT SEE FILE NO. 7,d-arktteicaA6 004,t-aytacurli, *3144.444-cr: q. EEFFffROFJI4 4 8 , DATED a4064242, fri,(444-a,a42., _ _ 111olrW11 Min 48-7500-2-20 F FEDERAL RESERVE BANK OF NEW YORK CROSS REFERENCE SHEET FILE NO. SUBJECT _id S. SEE FILE NO. LETTER OF )21/4- DATED /' J 16115C.J.I-90M-1-20 FEDERAL RESERVE BANK OF NEW YORK October 3, 1921. OralICE CORRESPONDENCE To FROM Mk. Snyder SUBJECT Governor Strong The attached is Welton's letter asking me to contribute an article on Expansion and Contraction. I wish I had time to write such an article myself, as it is one of the few in which I might be ieiterested in stating something. How about recasting what was submitted to the Joint Agricultural Commission, and adding to it two points: (I) The point that additions to our gold reserve do not necessarily involve inflation beyond the direct 100% inflation represented by the volume of gold imported, un]ess we make the added sold available as the basis of credit oy a rate policy, which induces borrowing; and (2) Some discussion of a wise expansion of credit in order to assist in world recovery of trade, &c. I would not want to deal with this subject except very concisely and fairly briefly, and will not do so until after I get some comments from you. BS:M[ti Enc. a --1-4 I S June 24, 1921. Dear Sir: Replying to your letter of June Mr. Strong ]id not i)repare an address to be delivered before the New York State Bankers Convention, as he unfortunately contracted a revere cold rhich made it impossible for him to carry out his original promise to be one of the speakers. Yours very truly, Secretary to Vr. Strong. C. A. Luhnow, Erg., Yublisher, Trust Companies, 55 Liberty Street, New York, N. Y. GE:MM http://fraser.stlouisfed.org/ cik 4flontlilg Federal Reserve Bank of St. Louis Xrusit Companteo Magazine pettoteti to thrust (Companies, Banking 11 Orust * Tninpanirs Prow CROSS REFERENCE SHEET FILE NO. Pio SUBJECT SEE 11 31 L-`631)4(eruo FILE N o. 7 S) D LETTER OF Ticit> DATED / 4 ANA, sA41-6-, caft,t- A/1,11.s. 63.a, F. D 7 CROSS REFERENCE SHEET FILE No. YY° SUBJECT 0- SEE FILE NO. 21C LETTER OF .0 DATED tri fei 711_714-(Ae 1P-4-,72-f wa.-.A. 0 Mum 34 FEDERAL RESERVE BANK OF NEW YORK (TO BE MAILED) CONFIRMATION OF TELEGRAM Tory sorry that I as unaUe to ,_000pt yLAAr iin6 invitNtioh to Ars,_ the. fool6ty Ituliwuy FinanciLl Cffiosni. next Iednud y We have today telegraphed you as follows: I as 014,Jiled in isicortaLnt a ieotin all that L:ornin to, Thnnke Gotobor 6, E. h. ALDEN, somttry horrors and Wectern Ri_ils.Ay Com, Ity, Commoroisi Trv,A $ 15th PHILA14,1Aili.* PA. ;want' October 7, :19. Dear Sams I shall be deAghted to addreL,s the advanced bnking class of the National City Bank Just Js soon as it is ,o,;sible for me to free mycolf from .4-1 accumulation of work and engagements which my absence _n Euro,e 1L..s occasioned, which will keep me occuided for the next two or three weeks. In addressing in organization and intelligence of those in your bank, I should want iretty good line on what to say and what ground has or has not been covered. Any suggestion you will be greatly ai.).,;recLAed. Very tru4 your3, Samuel McRoberts, National City Bank, 55 Wall Street, New ESAISB Yoa5 send me Septoraber 23, 1919. dear Lir. Lk:Roberts: Your letter of the .0th instant will be brought to 2.1r jtrong's attention on his return to the office the latter part '1471ivf of 146 week. Yours vory truly, .3e ore tr.try. Oarauel ileltoberte, Lag., 'e National 0117 Bank, street, New York. //eAli)ii>inffiWe UL CAPITAL FULLY PAID SURPLUS A UNDIVIDED PROFITS S 25.000.000. 5 52 000.000. AlYr*,/ Sept. 20th, 1919. CABLE ADDRESS "CITIBANK IN REPLYING PLEASE QUOTE INITIALS don. Benjanin Strong, Governor, Federal Beserve Bank of Nevr York, 15 Nassau Street, hew YOtk. lily dear Mr. Strong:- I am request Ed by the Advanced Banking Class of the National City Bank of New York to extend an invitation to you to talk to them at their session on October 14th., from 5:00 to 5:45 2.1.19, on any subject that you select, but preferably upon the operations of the Federal Reserve Bank that is under your direction. Trusting that we may have a favorable answer to this invitation, I beg to remain, Yours ver-,,- truly, Executive Mil.rmger. 111147~743,1111/ J,etz $ 25.000.000. $ 52.000.000_ CAPITAL FULLY PAID SURPLUS 8. UNDIVIDED PROFITS Sept. 20th, 1919. CABLE ADDRESS -CITIBANK IN REPLYING PLEASE QUOTE INITIALS Dear Ben:. For the last two or three years we have had here in the Bank It is a co-operative effort what we call the advanced Barking Class. employees of the Bank to widen their on the part of about 200 officers and It is composed. point of view and to keep from falling into a banking rut. the heads of divisions of the junior officers, the heads of departments and. of the Bank. They are all bright and wide-awake, and we are very much interested Thar meet every in the success of the class, and I an sure you are also. These sessions Tuesday afternoon at five o'clock, for a 45 minute session. are devoted either to a discussion of particular topics previously selected or to an address by sane distinguished person fran the outside who has accomplishThey want particularly to have you come in and talk ed some important thing. to than some time in October, preferably the 14th., and I am writing on their behalf to ask you to do so. I understand. that you are going to land in a few days, and. I will be delighted if you will let le Imoar that you can do this, as soon as you can conveniently decide on your engagements. With warmest personal regards, I am, Your s v Hon. Benjamin Strong, Governor, Federal 'Reserve Bank of New York, 15 Nassau. Street, New York. truly, S BUFFALO BRANCH 'kkeEltIko FEDERAL RESERVE BAN K AUG 1919 OF NEW YORK P. J. BUFFALO.N.Y. August 11, 1919. My dear Mr. Jay: Your note of the 9th instant is just received, and I am sorry to say that I have no recollection of ever having seen the letter enclosed. To my knowledge Mr. Strong never acknowledged the letter to Dow, Jones & Company, and I am almost certain that no such 'article was ever prepared by him. My only suggestion as to how it could possibly have reached you so tardily is that Mr. Strong sometimes holds such matters for attention during an absence from the'office, and it may be possible that he was holding this in abeyance and then at the last moment before leaving for Europe may have asked to have it referred to you. This, of course, is merely an assumption on my part and may be entirely erroneous. Mr. Beyer has charge of the distribution of mail and I, personally, have not been in the New York office since July 12th. I should suppose the matter is too old now to require attention. Very truly yours, ) Pierre Jay, Esq., Chairman, Federal 2eserve Bank of New York, 15 Nassau Street, i;ew York. kl S S tr A.;% --A "1 sk; .,*ust 11, 1919. Y`' My dear Mr. Jay: d1,sc). Your note of the 9th instant is just received, and Ian sorry ye say that I have no recollection of over lavinf; seen the letter enclosed. io sr knowledge Mr. Stron); never ::J.cicnowledged the letter to D017, (TOMS & Can}-any, and I are almost certain that no such article was ever prepared by him. 1%r only suggestion as to haw it could possibly have reached you so tardily is that Mr. Strong. sometimes hells such matters for attention daring an absence from the office, and it mz' be possible that he was holdinr this in abeyance and then at the last *giant before leaving for Airope may have asked to have it referred to you. This, of course, is rarely an s,sstraption on ry tart and racy be entirely erroneous. 1.tr. Boyer has charse of the distribution of 'nail and I, personally, have not been in the New York office since July 12th. I should suppose the matter is too old now to require attention. Very truly 3rcure, Pierre Jay, Esq., Chairman, Pectoral liaserve Bank of New York, 15 Nassau Street, New York. .7.1,--7.znt 11, 1919. Iffy dear Sr. Jays Your note of the 9th instant is just received, and I an sorry to say that I hare no recollection of ever hivin:.; seen the letter enclosed. To rti knewlodf:e Mr. never aokaawledged the letter to Dow, Jones & Cara-,ayzr, and I arn almost certain that no such article Was ever proparod Iv! him, .7 only surcestion as to how it could possibly Now reached you so tardily in that rx. Stron: sametiTres holds such rsAters for attention during an absence frora the office, and it Emv be possible that he was holdirr this in abeyance and then at the last moment before le-Arin7, for grope nay have asked to have it referred to yo'i. on ray part ant Mis, of course, is MS rely an assunntion be entirely erroneeras. Mr. Boyer has chr-4r of the distritration of mil and I, nersonally, have not 1)0011 in the New Yor1c office since July L?.th. I should wappose the matter is too old Tura to rerai re attention. Very truly yours, Pierre Jay, 3sq., Chairqin, Federal aeserve Bari: of Hest York, 15 Nassau Street, Nevi York. FEDERAL RESERVE BANK 1111 OF NEW YORK August 9, 1919. Dear miss Bleecker: The attached le&r from Dow; Jones & Company to Governor Strong came to my desk quite recently. hapi)en 10 knot: aov; it came to me? Lk) you It seems quite old and I should be glad to have any light you can give me on its oistory. Very truly yours, Pc.x.)2JU Ghairman. Miss ME,r3aret S. Bleecker, C/o Federal Reserve Bank, Bufialo, N. Y. PJ/RAH 3/ Mores. Lippincott, :sq., Yale Newsy Jew Haven, Conn. Dear Sir: (.-rrril 30, 1919. ur letter of "nril POth, 7 have no ng the article which appeared in the of course, you first obtain -omission pdblicntion. Yonrs very truly, Dow.-roisTEs &co. PUBLISHERS THE WALL STREET JOURNAL FINANCIAL NEWS BULLETINS ELECTRIC PAGE NEWS TICKER 44 BROAD ST., NEW YORK, N.Y. Benjamin Strong, Esq., Governor, New York Federal Reserve Bank, Equitable Building, New York. My dear Governor Strong: The writer is takin6 it upon himself to ask if you will favor him with your valuable expressions on the functioning of the Federal Reserve banking system during the war period. I believe an article along these linee prepared by yourself would he mot timely, and at the same time reflect food for thought to the critics erho of late have been endeavoring to link the fluctuating money rates in Wall Street to the central institution. It would affoc'd me much pleasure to intsrview you on thie subject at your convenience, or perhaps you may not care to depart from your policy of "always in writing*, and will favor me with a prepared article alon;-; these lines. In the event of your compliance with this request I should prefer to use it under your name, but would use it anonymously should you so direct. Yours very truly, - aD CROSS REFERENCE SHEET FILE NO. SUBJECT 71; 7Y0 n.1 d.ob-Lie)-17-42-1:7 SEE FILE NO. LETTER OF DATED rte_ -2S° -777/ `7//, 47e no r/4al AACC;ie C,Z; 011,12 atitre( (ji"% CLC I Lake George, N. Y., February 18, 1919. Deer 'r. Colvin: I found your letter of the fifteenth on my return last evening from New York. .711:,:t now, vs I explained, I am away from the office resting and am very reluctant to make env engagements for moetin=s or to make r,n address, certrinly until my holiday is nearly at en end. Ton't you, therefore, be good enough to excuse me from attending the m etin: to which you refer until possibly some time next month when I may feel able to do so. Thanking you for your letter and your thoughtfulness, I am, Very truly yours, Governor. Addison a. Colvin, 'eq., President, Glens Fells Trust Company, Glens Falls, Now York. BS.YS73 41k ©JEMS CM_AS unusr COIARAIKV GLENS FALLS,NEW YORK ADDISON B.COLVIN, PRESIDENT CABLE ADDRESS -GLENTRUST" A. EUGENE MASON, VICE-PRES.T & TREASURER WINFIELD A. HUPPUCH, VICE-PRESIDENT JAMES MCPHILLIPS, VICEPRESIDENT ADAM L.SITTER LEY, ASST TREASURER EDWARD M. ANGELL, ATTORNEY Feb. 15th, 1919. Hon. Benjamin Strong, Governor, Federal Reserve Bank, Lake George, N. Y. Dear Governor:- You promised me in our telephone conversation of some weeks since, if possible, to come to Glens Falls and meet our hankers before returning to the city permanently. I thought of the pleasure such a visit would afford have us, and hopedthat I might hear from you. Today my clergyman, Rev. Dr. John L. Caughey, called on me and inquired if it were possible to induce you to come down and make a short, informal address to our Presbyterian Men's Class. They meet every Monday evening and hear some speaker who Presents a current topic informally and educationally. Now this thought has come to me: If you would give us a Monday evening, dining with the bankers either before or after the Men's Class meets, that would most happily fill two engagements and give you an acquaintance I wish you might have with our people. We had Hon. J. B. Reynolds, secretary of the Republican National Committee, a week ago. http://fraser.stlouisfed.org/ ABC(C) Federal Reserve Bank of St. Louis Sincerely, CROSS REFERENCE SHEET FILE No. e /S SUBJECT SEE FILE No. LETTER OF DATED Lz4.4. ,z _y itA,terG form 10 TELEGRAM FEDERAL RESERVE BOARD WASH I N GiTON .-_ovexber 16,1918 McDougal C icago Your invitation just reached me hero and I greatly regret the necessity of denying myself the pleasure of accepting as I shail be absent on Novealber 30 and it will be quite imi_ossible for me to be in Chicago. Please extend my warmest thanks to Mr. Re nolds and his associates. Strung. OFFICIAL BUSINESS GOVERNMENT RATES FEDERAL RESERVE BOARD CHARGE http://fraser.stlouisfed.org/ 2-7729 Federal Reserve Bank of St. Louis TEL. D. 1 FEDERAL RESERVE BANK OF NEW YORK PRIVATE 8 Washington DC IRE-INCOMING 1155 A 16 Case NY Thanks for message from McDougal have wired him declining invitation. Strong 1211 TELEGRAM FEDERAL RESERVE SYSTEM (LEASED WIRE SERVICE) 2-4716 RECEIVED AT WASHINGTON. D. C., Ezra.:7 NeWYork 1123L1. Dpv 16 1918 enjLmin Strong 'are Treasury .lashington DC urgent Follong telegram received this orning from McDougal of Chicago Quote- Till it be possible for you to come to Chicago November Thirtieth and make the address at an evening dinner given by the bankers Club of Chicago I am requested by Mr .:1-thux Reynolds president of tae club to e:Ltend in his behalf a most cordial invitation and I cLal personally assure you that Chicago would feel honored. Moreover that your presence will insure a large attendance representative not only of the bankers but the best business interests in this comimaity. I earnestly urge you to come fld quote. LcDouLa1 has just called you at the office here to urge you to accept this invitation. J H Case 113(1111 Misc. 34 FEDERAL RESERVE BANK Sent by OF NEW YORK (SEND 10 FILES) COPY OF TELEGRAM N W. Strong, Esq., .ovember 16 1918 Private Wire - Outgoing - 11:00 o'clock a. m. 41/0 Treasury Department 1.13B Waehingten Following telegram reoeived this morning from McDougal of Chicago quote URGENT Will it be possible for you to come to Chicago November thirtieth and make the address at an evening dinner given by the Bankers Club of Chicago. 1 am requested by Mr. Arthur Reynolds President of the Club to extend in his behalf a most cordial Moreover invitation and I can personally assure you that Chicago would feel honored that your presence will insure a large attendance representative not only of the I earnestly urge you to bankers but the best butiiness interests in this community McDougal has just called you at the office here to urgs you to come end quote accept this invitation. J. H. CASE TEL. D. I FEDERAL RESERVE BANK OF NEW YORK PRIVATE WIRE-INCOMING 66f pf Chicago Ills Nov 15-18 358pm 1 BENJ. STRONG, F.R.B.NEWYORK Will it be possible for you to come to Chicago November thirtieth and make the address at an evening dinner given by the Bankers Club of Chicago. I am requested by Mr. Arthur Reynolds ,Presi6ent of the Club to extend in his behalf a most cordial invitation and I can personally assure you that Chicago would feel honored, More-ever that your presence will insure a large attendance representative not only of the Bankers but the best business interests in this community. I earnestly urge you to come. MCDOUGAL 5pm ( W. U. Misc. 3 11 25M Sets 11-16-17 2694 BANK OF CHICAGO CONFIRMATION OF TELEGRAM (THIS COPY TO k BE MAILED BELOW iS A FACSIMILE COPY OF TELEGRAM SENT YOU TODAY Chicago, Illinois, 1Zovember 15, 1918. Dm*, Otrong, Federal Reserve Bank of New York =r i11 it be possible for you to come to Chicago Noverbor thirtieth and make the I am address at an evening dinner ;1:71011 by the Bankers Club of Lhiczlip, 20yholds, 2recident of the clUC, to extend in his requested by 'LA, behalf a most cordial invitation and T cLsa ,dersonally assure you that Chicago would feel honored, moreover that yarn. :.esence rill insure a large attendance representative not only of the bankers but the best brsiness interests in this comatinity. I earnestly urge y-cm to core McDOUGAL / October 16, 1918. Ay dear ;.ir. Chase: It would give me very great pleasure to attend the annual meeting of the Association of Credit Men to be held on ivovember Zist, had I not already conditionally accepted a similar invitation from Mr. Cooke to go to 1;uffalo later this year to meet the bankers of that city. fou will, I am aul-73, realise that with the pressure on mv time as great as it is, it would seem to be impossible for me to make two trips to buffalo, much as I would line to do so. let me thanK you, however, most cordially for in- viting me. Very sincerely yours, William F. Chase, Citizens Commercial 2rust Company, Buffalo, N. Y. CAPITAL AND SURPLUS $2,500.000 JOSEPH SLOCK, CHAIRMAN OF THE BOARD WIL' WIL H. ANDREWS, VICEPRESIDENT WILLIAM STREET BRANCH H. CROSBY. PRESIDENT NORMAN A. MACDONALD, VICE-PRESIDENT CITIZENS COMMERCIAL. TRUST COMPANY WILLIAM STREET, CORNER SHERMAN LEO B. SEITZ. MANAGER HENRY WOLF, JR .. ASST MANAGER BLACK ROCK BRANCH NIAGARA AND TONAWANDA STREETS ROY H. GRIFFIN. VICE -PRESIDENT SIGNOR J. TUCKER. VICE-PRESIDENT MAIN OFFICE-- ELLICOTT SQUARE WILLIAM F. CHASE. TREASURER WEST SIDE BRANCH 74 GRANT STREET, NEAR FERRY STREET MILES E. FREEMAN. MANAGER ROBERT W. MORRIS. SECRETARY BUFFALO. N. Y. BERNARD M. NORCROSS. ASST SECRETARY IRA D. LOCKWOOD, ASST SECRETARY HARRY G. HOFFMAN, MANAGER R. W. H. CAMPBELL. ASST MANAGER STANLEY J. PAWLOWSKI, ASST MANAGER C&VEDIT DEFARI-MENT October 15th 1918. 'OCT 1 6 1918 Mr. ..ienjamin Strong, Governor, Federal Reserve Bank, New York, N. Y. My dear Mr. Strong May I as Vice President and a member of the Speakers Committee of the Buffalo .1.29140mcd..aratii-t-Lisxk._axtend to you an invita- tion to speak at our annual Bankers'Meeting on Thursday November 21st. This meeting has been a fixture for years and has been very well attended by the Bankers' of Western rew York. This year we expect an attendance in the neighborhood of two hundred. We feel that this would be an excellent opportunity to enlighten Dankers',both members and non-members regarding the activities of the Federal Reserve Bank. We would, therefore, appreciate it very much if you can arrange to address this Thanking you in anticipation for the meeting. courtesy of your response, permi I. to remain, Yours for th WPC 1131 *b. Fourth Li rty Loan, Form 1204 CLASS OF SERVICE WESTE Z OSAA SYMBOL Tel et NI Message Night Letter Blue UNION NI words) this is a telegram. Otherwise its character is indicated by the symbol appearing after the check. Nits NL appears after the check number of words) this is a telegram. Other- GEORGE W. E. ATKINS, FIRST VICE-PRESIDENT NEWCOMB CARLTON. PRESIDENT Blue If none of these three symbols ze4 appears after the check I number of Day Letter Night Letter irr-c TELvalmis A M If none of these three symbols SYMBOL Telegram Night Message WESTERN UNION Nita CLASS OF SERVICE wise its character is indicated by the symbol appearing after the check. RECEIVED AT 42FY FFN 2 RELAY DPR DA NE,,YORK iCT 13 / BENJAMIN STRONG 0.1 I_ 116 E 61- ST THE aORLD 4OULD ORE TELEGRAPH COLLECT FROM THE STANDPOIN YC LY APPRECIATE A NALYZI- N EXPRESSION FROM YOU SENT THE GERMAN REPLY SIGNIFICANCE AND TO PRESIDENT NILSON SINCERITY THE 407LD 1139PM October 8, 1918. My dear Breed: I am very sorry indeed about the announcement. I really am unable to make an address, but if, at the last minute, tnere seems to be some need for a few words about the progress of the loan, I will be glad to let you know at the time, but hope my name will be left off the program. Cordially yours, William C. Breed, Esq., Chairman, Members' Council, The Mernhents' Association of New York, 1oulworth Building, New York. 33 -,L3B Jctober 5, 1V18. .,)ear Ir. Breed: I feel very mach disturbed that my name appears upon your program, as it will be quite impossible for me to address the meet ins; on the 10th instant, and I stated so very positively when I was asked to attend the luncheon. The demands on my time and strength during; these loan cam0:1 require the very limit of endurance, and I can not possibly understand why my statement that I could not address the meeting was not accepted as final. Very truly yours, Governor. William C. Breed, _;sq., Chairman, Ifembers' Council, The Aerchants' Aeseeiation of Woolworth 3uildil4;, October 4, 1918. gy dear Jr. Mead: I have just received the announcement of the lunchton of the Members' ,;ouncil, in which I notice that my name appears recall that I definitely declined ake an address st the mooting, as it or me to do so. I really think that should not take Clings for granted as ent. I certainly would not have declined know that the metiting is an important Very truly yours, l, f iiew Y9x6s, 3uvernor. litsc. 34 FEDERAL RESERVE BANK OF NEW YORK (SEND,:r0 FJLES) Sent by COPY OF TELEGRAM Business._ Government Rote, Expense of ith Liberty Loan. Sagtmsbdr 28 1918. 'alter P. Cooke, ":411., Puf'le Liberty Loan Committee. 1330 uarine '',Frik Building, Suffido, Y. Your telegrA,n goat received on my return to the office this nerving stop I shell certainly 3olta my promise geed if you feel that it is necessary Rut I have no riht to do it if my health 10 ony censideration stop .:Plould you feel my presence necessary, will go monday but must ask ylu to let me off Nith http://fraser.stlouisfed.org/ BFederal Reserve Bank of St. Louis a very short address. stop CROSS REFERENCE SHEET FILE NO. 19-0 C3SUBJECT \lett. - SEE FILE NO, A- LETTER OF `(VIA etr-iet Pt- Vae-r-L- DATED_ 9' 12-1 za-r-e-e-c-e (3L-i Tire Tuntutacia Sinancial Thula& WILLIAM B. DANA. COMPANY, PUBLISHERS CHRONICLE BUILDING -FRONT, PINE AND DEPEYSTER STREETS NEW YORK 138 FRONT STREET September 26, 1918. Mr. Benjamin Strong, Governor, The Federal Reserve Bank, New York City. Dear Sir:- Will you be good enough to let us have a copy of the remarks made by you at Tuesday nightla mass meeting at Carnegie gall. Very truly yours, CROSS REFERENCE SHEET FILE NO. r14b SUBJECT SEE FILE N. LETTER OF U. F DATED 811146/ _ vwk ev-tr-iascOAAA-11 ;t-q _ c2AW -LQyao-19LL-.11LAA Misc. 51 Office Correspondence T Mr. Mmereon From FEDERAL RESERVE BANK OF NEW YORK Date August 2, 1918. Berl!. Strong. Subject: Regarding that article about InvestmentN if you find that there is an opening for me to dc so, T -rill r4,-'4,e such en article for Collier's or, possibly, the North American Review. 135 .MSB Form CLASS OF SERVICE SYMBOL Telegram WESTERZkNA Letter . Blue Message iotd Letter s. WESTERN UNION Nite TEL NL If none of these three symbols appears after the check (number of words) this is a telegram. Otherwise its character is indicated by the symbol appearing after the check. UNION AM*" GEORGE W. E. ATKINS, FIRST VICE-PRESIDENT NEWCOMB CARLTON, PRESIDENT CLASS OF SERVICE I SYM OL Telegram Day Letter Blue Night Message Nite Night Letter NL If none of these three symbols appears after the check (number of words) this is a telegram. Otherwise its character is indicated by the symbol appearing after the check. RECEIVED AT )053 TH!RD AVE N. V. T95FY EL 35 3 EX NY NENYORK -V I A 40C DSHOLE MASS 220PM AUGUST 1 191 8 080 BENJAMIN STRONG THE L ARTICLE C Lifl 36 EAST 62 ST i'EX(C'RKC I TY I S UNDER CONSIDERATION BY I N THIS OFF IC= NR I TER J I LL SATURDAY POST. NOT BEING PREPARED CONSULT CAPITAL` ISSUES F COMMITTEE ARTICLE MAY NOT BE ;JR1TTEN I COPY CAN BE SECURED 41LL F CRAP D GUE EMERSON 314#M CROSS REFERENCE SHEET FILE No. 7k/0 SUBJECT SEE FILE NO. 986- LETTER OF 4.7 DATED 5ie .jig 16-4.44-4-4Li v'er) ti 66-, 7 r&- --/1" 73. 71-4-4-6Lc-1-4 WAR VMS VS. RUSI'ilS5 AS USUAL Two grett Covornment war loans have now been issued, which have gathered into the Tretsury f5,8O0,000,O10. Our Govornoent also /Iva, outstanding iobruary 18th over V!,100,000,,D00 of short notes, together representing 1,900,40,000 of WOW borrowings oonelthtod in six months end, in addition, taxes have been ptad by our AP citizeiiu nmeurting to many hundreds of millions. People are beginning to ask how the loons and tax collactioor mey continue at eUC war when the ertimoted nationol seving a 'Once durino: a possible long is but ocmowhers rhout $6,r)00,000,000 a year. In general it may be eoid thot nftor the :;000rnx.ort hos borrowed all the loose :oust root upon bank expansion also borrow- uninveatod fund of zavings, ing Tuat The clnclusion .ts obvious, tont incool.i'od sov:noos memns a correspond- ing curtail:Tint or c:tpansion, Blunder launing and fluunciel c)odition for the nation and, even more important in tho 'one; futore, habits of indIviduol tSrift. 3ut what is the relation bet,-.Teen thri.ft anti -car loano, and no- may theifi be practiced without imposing great loorla uoon mIrchants and menufactursrs oho would both pay taxes and buy 'oonJo if they were nrospering under the influence of the :_liasiva clogen "lousifleEl 2.3 Usual"?. To answer thie, wo muso ocoept as molitios some vary obvious con- clusiona 4s to s* nation's realth end ho-; it may be divertol from Voe urea of pesos to thoso of war. The wealth of N nation is not along its natural reeouces, for, rtre it co, this oluntry have enjoyed greater wAalt before its discovery and settlea4nt to at; presort, since o-s have coasuoted muoo of its naturel resources in the last 4^O goers. Nor is it population alono, for, in that cane, China, India cr &Iasi!: would enjoy wealth far Froeter than ours. it -7roducee fro-,,, its natural resources, by the The lireelth of e nation is what to them of the labor of an ?oerretic norulation so that their pooducto may be used and onjlyod and made servicesh2o further nroductlon, leaving out of account the less important wealth reprnsented by investments, or services rendered, in foreign countries. in time of peace, the ?roduction of a nation is roughly equal to its consumption, plus what it uses in its foreign trade. Men war comes, production must be increased .0 meet the appalling wastage of war, and, if the tar is extensive and long, the mount of labor required for production or both peace time consumntion and ter consumption it innufflcient, and is coon reduced by withdrawal of men for ear making. The demendd of those who eiani. consumption ae usual, meaning "burin ern as usual" is the natural conflict of peace conditions with war conditions; in .ether words, competition of tht individual consumer in the merkots for labor and material with the Cevernment which nees laoor and material. prove sufficient to most the demands o' both. The "wealth' of tne nation will not The time noon nrrivek; vi.en unnecessary connumption nuot he reduced cno stopped, else this bidding of individuol age input Govern- ment will advance prioes of labor and notoriols to prohibitive levels. ban }r Expenelon in loans and deposits anti inflation of currency iLsues rill be a necessery accompany- ment, cad the whole economic structure w..11 be undermined. This in "economic oXhaus- tion." mel,;oe of minimising those evils are poseible, and we roust net ebout 'Juo reward till he certain in later years. employi/n! theu.t. The more imnortent steps to be 'oaken tare: virst: Third: reurth: Fifth: Ketiuce the concumption of luxuries Avoid toalt in the cereu-intion of noceoaities Develop more effective application of labor to production Briog OMAM into r: eductive oecor.etians 3cononiee the. supply of credit But some one will at once say that by this program his busin'sr, say that of manufacturing mueicel instruments, is ruined because he producee a luxury. And the grocer may ree venishinz prefiLe if his trade in luxuries 13 stonped and in staples curtailed; and the laboring ployed in addition, Ewe loo:er wages if his work i olds more productive and women em- the banker s30 lose interest profits if he curtelle lotnt to custemers of the "luxery" elaet. This ie all true enough - in feet so '.rue that it anpecro as though here murt be the rmA, or GOMO of the many roots, of the evil of "busin.1,,e as '.:zu0)1." TEE change.3 and Edjuetmcnto forced upon us by tar CkP not all be brought about at once. Just now, with general economy the theme of every lecture, we hear many cries of protest, each indicating in turn "whose ox ie being gored." If every -3- .henge ultiestely neceesery were instantly accomplished, no harm would result to anyone poseibly some perronel discomfnrt due to self denial would be felt but labor would find new kinds of employment, meeufacturers net' kindv of production, traders nue articles of trade, and bunks new cultemert. 'ere only u fee' receljeeteee',8 made et once and others silence. to wait, our plight wculd reeemble that of an excurcion boat whot6 pesteeEers all rooted at once to ors roil. It might capsize. WOP4 -err reedjusteente cOlould proceed is rapidly at potoitle, etch et a rats eo rdjuttod thet labor will be conetently vexploy:d, but W.U. no ehortege of labor, so thil each moeufacturtr ern ad,:uot his affairm and af.ply his poem, hic machinery and his orgonizatien tome introduce new eel ocesteiel cnea; ii nued; veoh effected tie/tab liquidate old linee and .ech bank rbdaCS leaps 'or unnetoesery purposes as =porde lour.:. t. Goveremoet and customere for ter pureeeee. Of ceurto LD such ideal reeljuetment is poceible in its eeteeety and in detail. Zme itjurioe :111 occur, lots to eill be sesteined, the 'oelence o' emoloyment and sunply of lolor will not bs meetly preoerved. erly ,hen ee take a nptional, rather than a eersonel vier cf the matter, do we see that our problem it both to win a military eer, tleich, if lost, may moan our destruction, and 'Le conduct an ecenomic war, which, if lost, right e!s11 cost us ns dearly us tits lo3a of the military war. Per, to ptelerve our ecnomic :strength, which is fundamentally ths sbiii,. 7 to produce goods end finance their nereleetion end distribution cheaply in tlie viol-late competitive merkee'e:., Incledirz our 1-en, ei1.1 eivs us the comforts of a future fret of oo heavy a war rorteese slab can st oros co about our business eittoet the uruel post vex prostrstier. reilure to reedjust so RS to bripg about cortailmeet of unrectecary ooneumptiete by iniividuele and thereby act fres goods and labor for vier consumption by the Government means that en rust ocieduct the *oar by the employment of pfoods Rod lehor et con- stantly increaoing peicer.Thrt makaa wPr more costly, makes the burden of taxation heavier aed the total of the Government's brrowings greater. All of the goods and labor eiployed for rer eurpo-ren aro produced end employed curing the period of the war 41/ and not by future generetiene of produce: s. conducted .s indefinitely advanced because consumer " If the price level at which war is of competition between the individual end tkx*xerf the Government, the Government's borrowing needs are just eft much greeter. loans to provide the The/sinews of wer furnished by those who buy bonds become in offein-mortgngo on the netion'c future inorme to be liquidated by future generations of tax peters. If the ccience of Goverrent were se nerfected that this ideal trensformaiiee cc;:ld be brought ehout, th rind: folloTing censequencee might be aseemed: The ceneunptien of rev Tarterlals would be lieited to the manufacture of personal necocsieiee ;;-ur -zutur-3. Second: The prodect labor reoull nrovide in pert or wholly the net incresed consumption of gooua caumed by -er. Third: There eould be.11etle, if ere, shartees of labor, for it would not only be more effective, but eceel eould reelect, eer draftee into the army and :levy. 17)urtb: Advancing prices would by chocked, both for labor and mnteriele. Fifth: Ceadit reealrod for proeectien and distribueion of luxuries and to finance waste would be raved for Goeerneent'e neede. Fixth: The ".neelth" of the netien, destroyed in per, could ecre largely be furnished out of dconomito practiced. Seventh: The Government would need to borrow love as Its suppliae would cost 1,w,, rq-p would pay lee:. interest becalms the eupely of credit would not bu burdened Kith the lead of "husinene are usual." It is claimed, es nay be true enough, that even so visionary a program would net enable the "eeelth" of the nation to meet the demands of war. Then, in- deed, le must accept a cerfully cefeguereed plan of expansioe to make up thn balance. 7.er ,csople east to that extert mertgape their future "wealth", the product of their future labor applied to our resources, and do it cheerfully. That mortEuet oe sue lebore of the future will largely he eee loan=, both thane omits by -5w our Goverment and trots nede by irdividurls te annble them to pay taxer ere to byy 41/ bonds of the Goernment. frith the morteare kept rt the smallest peeeihle smoent, we may cenfidently expect thet greeter efficiency o' labor, n lever price level, ane etre-ego: bank recr.res than otles- net!ore, rill elle^ us to amerce fror the wer, warkered he cure, but net eebeueterl, end etreneor then meet others. There seem to be four ereceeduree immodietely neceesery, some or eohieh are olroady underl-ay: Eoee centre_ of rev materiel:. by the neeernment necond: eldueation of the public a.: to hoe they eh)el extend their incomes. Third: Int Education of leborere as to where they should cheell be rs to TOIst gradually reduced or discontinued. effect of the fourth item of the nroerem is the only ore to be coaoidered hero. Usual." It direetl.y relates to the contest of "War Finance ve. Business as If the baseeero of the country wore able to curtail unnecoesary and weetew ful borrewings by their customers, loans, the proceeds of vhich are used to build or improve hemss, exteal elants and humieeleue eertainine solely to luxury, build plates of amueeeont, and for many other nurpolee 'hick I purpesoly refrain from enumeretieg, ell of there betWere would have surplus credit to see o_' in loene to the GoverNrent or inAuetrize vital to its war needs. Those from whom credit was so rithheld woeld be refit reined free the employment of labor and materials, many would liquidate some part of their inventories and not replace them, so also saving labor and material, and, equally important, the lemsened use of credit would reduce lone and deeesite, increase the ratio of bark rererves, reduce interest rates and facilitete the Government's financial eregram. A coutiout but deliberate snd voluntary policy along these lines would be oefer, more equitable, and, probably, as effective as the only alternative, which is higher rates of interest, along with higher prices for everything. Ths natural -6- rock s.0 expsrsion in time of peace is the prohibitive interest rate, combined with over eroduction induced by rising prices. In war times, the oneration or this 1.aw provss emborreeinA' becausa of the excessive rates which the Govermnent must ray for loans, and the corroaponding shrinkage in security velum") sold in ac!'octiticn %:ith Oevernnteot bonus. terest mien. 3ther serious dangers accompany the elevation of prices anc: in- In ft long ver it mr.y sea' to become Fr. erdleet reco .H.th the dog chasing his tail in a. circle. ThesL proldems must not orly be faced courageously, bu',, dsait with in- Tho fathers of younc men wk.o ire servine their country LI and navy Are proud of the sacrifices they z.eke. urny Too ofto-,i, however, mhon the sacrifice ao.9earn nt the altar of busineoe, when, we have ea 14114 Tore-appeld false values, we shrink and protest. unfarOinately, must sacrifice their sons, ethers some part o' their bueinese prosperity, and still rIthere may face the ordeal of A doublA 15/1CrifiCe of both. It it, oi.e of the erful consequences of vtr. Lot us cevcte ourrelves to avoiding en unnessotery sacrifice of both boys and business by ordering our affairs so that we ere not censterinft t i R':." Title at ;lams 4.hich oar armies need at t!..5 front. CROSS REFERENCE SHEET FILE No. 7 4c' SUBJECT /3 5 S FILE No. LETTER OF DATED 7' a its siZZ---ti 4-v ,e,&d.-t.4.42.,ez, ROSWELL A. BENEDICT II4ST NORWALK. CONN. TELEPHONE 136-2 THE SUNNY CORNER An Open Letter to nr. Strong, Governor, Federal Reserve Bank ,_ YNo 11 OSBORNE AVENUE N - March 28/18 m Dear sir: - Your article, "Finance Without Inflation", copied from the North American Review into the New York Tribune of 7,arch 27, 1918, has attracted my attention. Therein, you say: "In general it may be said that after the government has borrowed all the uninvested fund of savings, further loans must rest upon bank expansion, else borrowing must stop. The conclusion is obvious that increased savings means a corresponding curtailment of expansion, a sounder loaning and financial condition for the nation and, even more important in the long future, habits of individual thrift. x x x x x x x "The demand of those who want consumption as Renal, meaning "business as usual", is the natural conflict of peace conditions with ware conditions; in other words, competition of the individual consumer in the markets for labor and material with the government which needs labor and material. "The "wealth" of the nation will not prove sufficient go meet The time soon arrives when unnecessary the demands of both. consumption must be reduced or stopped, else this bidding of individual against government will advance prices of labor and materials to prohibitive levels. Expansion in bank loans and deposits and inflation of currency issues will be a necessary accompaniment and the whole economic structure will be undermined. This is "economic exhaustion". The foregoing paragraphs contain the pith of your able article. It seems to me you are in error in your conclusions for the reason that you 14,Te taken a wrong point of view. You treat the government as ii,,ivere merely an ordinary individual in business, pleading for oredit and depending on ordinary property conditions to Thereas, the government is the people; its source of credit get it. is the whole wealth of the people, to which alone its "borrowing" capacity is limited; and its power to "borrow" is as wide as the people's power to liquidate raw materials into products. But let us see what we mean by some of the expressions in the above quotations upon which the whole matter depends ? An eminent rhetorician once truly said that nearly all serious misunderstandings arose from the different senses in which opposing parties used the same terms.* For example, what is meant by "the uninvested fund of savings"? Is it simply the people's cash klaxsa balance, in currency or coin, to their credit in the banks or nestling in their garret stockings ? Or may it be other assets also ? For instance, if I have saved money and locked it up in interest-paying real estate, is or is not my mortgageable equity therein "an uninvested fund of savings" as soon as the cash is again in my hands realized by mortgage ? Is it a "bank expansion"merely to swap securities with me, the security of the public contract carried on the face of "currency': for the security of my mortgage on sound real estate ? I good as I get. give as 4 ROSWELL A. BENEDICT IAST NORWALK. CONN. TELEPHONE 136-2 THE SUNNY CORNER . Strong - 2. No 11 OSBORNE AVENUE i:aroh 28/19 19 Then, what is meant by "inflation of currency issues" ? For instance, was there inflation in the transaction just alluded to ? Is it an "inflation of the currency" when I make "current" my equity in real estate by merely swapping one seautity for another - giving the bank my equity in exchange for its currency ? Is every condition of financial flux, whereunder property is liquidated and passes thus from one form to another more agreeable to the owner, a condition of "expansion of credit" or "currency inflation" ? That is "currency", after all, but a convenient instrument for running property into changing molds, corresponding to the owner's desire ? Is it not true that the expression, "inflation of the currency", really was derived from dishnnest operations wherein the property symbol, money or "currency", Nas a mere counterfeit of property, representing nothing but spurious metal or paper ? Is it correct to apply the expression to transactions whereunder currency is nothing more than a form of contract between the people on the one hand and the individual on the other under which the people agree to accept in the market the symbol for the thing itself ? Is currency, after all, in its essence, anything but a promissory note, tacked by the people and, instead of being secured by a mortgage or deposit of stocks or bonds or other valuable,. secured, by their common consent, through their legislative agents, up to the face value thereof, by products offered for sale in the markets ? It seems to me that "currency" differs from a private note only in the fact that it is more readily poured into a new mold than a mortgage and that it is universally secured by market surpluses at current prices to its full face value. It is a ball and socket joint instead of one It is the obligation_of the people, working in a single direction. secured by all their property offered in the market; and an examination or all cases of "depreciating currency" shows that the weak point was that it was not formally backed by the whole people among which it circulated; there was doubt as to just who and how good the backer was. This was true of the civil war greenbacks; true of the continental notes; and true of every fiat money issue in the past, pointed to by financiers who fear "inflation" and its ram rueful consequences. here has been an enormous rise in prices since the war began, as every housekeeper has observed; but the rise has been due to no "inflation" but to the feverish and exciter. demand of the people studiously pumped full by dealers of the idea of a war dearth; and t fever or uncertainty has been heightened and the effect agora-eed by the constant hysterical appeals of government boards for "saving" this or that. But why should the government "borrow" theuninvested fund of savings" or anything else ? It certainly does not neea to borrow. The notion comes from the ancient fact that the people and governThe king had to cajole the people ments were different entities. to lend him money to keep his throne, sometimes when it would have better served the people had the king lost his throne. But with us, the government and the people are the same body. It is folly to regard the government as a separate and adverse interut against which the people should be s'&ured by "bonds"collectibil-against themselves * crust lg tut Companies (tute,tniefi 4" Plonthlg Magazine Elenoteti to Trust Companies, tianking anti ,?Ifinanrial Interests of the lartiteb States .%:"71. ....11IWS 55 Pliertu Street, tieizi Vork City C. A. LUHNOW, PUBLISHER TELEPHONE CORTLANDT 1789 March 27, 1918. Hon. Eenjamin Strong, Governor Federal Reserve Bank, New York City. Dear Governor Strong: TRUST 007,.T.PANI2S Pagazine, as you are probably award, has a large following among trust companies and State banks. We have been exercising whatever influence we command to urge trust companies and State banks to enter the Federal Reserve system - tp help strengthen our financial sinews for the prosecution of the big war. We naturally need the help of our foremost spokesmen on federal Reserve and banking affairs. The thought occurs to me that it would be very helpful in advancing our propaganda among State institutions to secure an expression or an article from you for our April issue, emphasizing the facilities and actual benefits which trust companies and banking institutions secure through membership in enabling them to secure credits, rediscounts and other accomodation. The advantages of membership are rendered especially obvious in connection with our Liberty Loan campaign. I appreciate that, just now, your time will not permit of undertaking to write articles. I would like to suggest, however, that we could use the bulk of the address which you delivered at the American Bankers Association convention, especially the successive stages of the functions of the Federal Reserve Bank of New York Iron. Benjamin Strong--2 in connection with the Liberty Loan adjustments. An article of this kind would not only stimulate sentiment among trust companies in favor of "membership" but it would also make clear the great importance of the Federal Reserve Banks in sustaining reserve and credit conditions in the face of heavy war requirements. Very sincerely yours, Publisher. TREASURY DEPARTMENT WASHINGTON NATIONAL WAR SAVINGS COMMITTEE Mcrch Seventh 1 9 1 0 Mr. V. C. McLaren, FederLi 7,eserve Bank, New York City. My dear Mr. McLaren:- I havo ynur letter of yesterday in which you state Mr. Strong is to be out of torn for a few days. Could you not, in the meantime, prepare t1e article from material Mr. Strong has already used on his return? and have it ready If you could send it to me early in the week of the 17th I could release it for the newspapers on March 71st. Faithfully yours, /41.4/NA -4h National War-Javines Committee, 319 National i.:etropolitan Bank Bldg. f. KIP/CC. TREASURY DEPARTMENT WASHINGTON NATIONAL WAR SAVINGS COMMITTEE' March Fifth 1918 Lir. Benjamin Strong!, Federal Reserve Bank, Now York City. My dear Mr. Strong:- I enclose proof sheet of an article by the Secretary of the Treasury that we are re- leasing for the newspapers of this coming Sunday. This is the first of a series of weekly articles am. I should very much like to have one from you, oft say, about fifteen hundred words,for as early release as possible. These articles will run in all large newspapers in the country and will reach a National audience. The particular article that I wish you could write for us is one that stegested itself to me when I heard you speak scenetime ago before a That evening you told a Liberty Loan Committee. very interesting and touching story of the wag the French peasants were bringing out their hoarded savings and lend inn^ them to the Goverment. Couldn't you let me have an article just on that phase of the subject - the way the mass of the French people put their savings at the service of their country in a National emergency. I think you will see the advantage of us- ing this article at once, both for the and the Liberty Loan. Tar Savings Faithfully yours, c-tidftm Nat ional War- Savings Ccnenit tee, 319 National Metropolitan Bank FHF/CC. Enc los. Bldg. a CROSS REFERENCE SHEET FILE No. SUBJECT FILE No. LETTER OF DATED '7.2 _ JOSEPH VAN VLECK, JR. HI FIFTH AVENUE NEW YORK February 19, 1918. Mr. Benjamin Strong, Federal Reserve Bank, New York City. adA FEB1 9 1918 My dear Mr. Strong:- 1 At my suggestion the W. S. S., Committee at Montclair unanimously request you Trlaiorably consider an invitation to speak for Fifteen or twenty minutes at a mass meeting which afternoon at four o'clock, March they have arranged for third. Montclair has done well in the Liberty loans and the war This we have doze funds of the Red Cross and the Y. M. C. A. without the assistance of any widely known big men, in Which I take the liberty of classing you. You once lived in Montclair and the ton is proud of the fact and I truly believe it will mean much, if your time will permit you to participate at the proposed meeting. I have talkel with Harry Meyer and he joins with me in the reouest that you will come. I promise, if you will button its coat and throw cut its chest. The time for the meeting is set, all other conditions will be arranged absolutely according to your wish. I personally hope that you will come and spend the night with us. You can rest and take it absolutely quiet or we will arrange to have some of ycur old friends at the house, if agreeable to you. Very sincerely yours, 14-0 FOUNDED APRIL 5. 1768 PRESIDENT EUGENIUS H. OUTERBRIDGE VICE-PRESIDENTS 1,'_FRED E. MARLING HTON A RAVEN LIAM SKINNER WVELAND H. DODGE CHAMBER OF COMMERCE OF THE STATE OF NEW YORK HENRY HENTZ EUGENE DELANO PHILIP A S. FRANKLIN JAMES A. FA RRELL SIXTY-FIVE LIBERTY STREET SAMUEL REA FRANK K. STURGIS HENRY P. DAVISON T. DEWITT CUYLER TREASURER NEW YORK SECRETARY CHARLES T. °WYNNE WILLIAM H. PORTER CHAIRMAN, EXECUTIVE COMMITTEE WELDING RING evn. r ASSISTANT SECRETARY JERE D. TAMBLYN ldP.(1 January 22, 1918. Hon. Benjamin Strong, Governor, Ferderal Reserve Bank, 15 Nassau Street, City. My dear Yr. Strong: I am in receipt of your letter of January 18th and the quested. enclosure which you have filled in as re- I am, however, putting you down as serving as Chairman of the Liberty Loan Committee, as that service should of course be noted on our records. Thanking you for your interest and cooperation, I am, Very truly yours ("SOCIeiary. TREASURY DEPARTMENT WASHINGTON NATIONAL WAR SAVINGS COMMITTEE March Seventh .1 9 1 3 Mr. V. C. McLaren, Federz.:.3. 'reserve Bank, iTew York City. clear Lir McLaren:- I have r-Tar letter of esterday in N.711.ichh_ you state Mr. 3trong is to be out of torn for a few days. Could you not, in the 1:e.?zitime, .prepare Mr. strong has already used and have it ready ibr his approval on his return? If ;ou could send it to me early in the week of the 17th I could release it for the newspapers on 1,1::,rch t 7o.ithfully yours, /414/NA -41-: National War-Ca.vings Min ttee, 319 : :at tonal I.:etropolitaa Bonk Cal BI rig*. TREASURY DEPARTMENT WASHINGTON NATIONAL WAR SAVINGS COMMITTEE Liar ch Fifth 1918 . Lir. . Benjamin Strong Federal Reserve llow York City. L:y dear Lire Strong:- I err lose proof sheet of an article by the Secretary of the Treasury that we are re- leasing for the newspapers of this coming Sunday. This is the first of a series of weekly articles and I should very much like to have one from you, off ow/ about fifteen hundred words,for as early release as possible. These articles will run in all large news papers in the country and will reach a National audience. The particular article that I wish you could write for us is one that suggested itself to me when I heard you speak s amettne ago before a Liberty Loan Committee. That evening you told a very interesting end touching story of the wag the French peasants were bringing out their hoarded savings and lend ing them to the Government. Couldn't you let me have an article just on that phase of the subject - the way the mos of the French people put their savings at the service of their country in a National emergency. I think you will see the advantage of using this article at once, both for the War - Savings and the Liberty Loan. Faithfully yours, /lam -k+ FLT/CC. Eno los. C.IJAV"r National Warngs C crim it tee , 319 National Metropolitan Bank Bldg. CROSS REFERENCE SHEET FILE No. SUBJECT SEE FILE No LETTER OF DATED _..., /,: / JOSEPH VAN VLECK, JR. III FIFTH AVENUE NEW YORK February 19, 191n. Mr. Benjamin Strong, Federal Reserve Bank, New York City. FEE11 9 1918 My dear kr. Strong=- At my suggestion the W. S. g. Qpxmittee at Montclair unanimously request you trillitr.consider an invitation or twenty minutes at a mass meeting which Ito speak for r they have arranged iortiaiii afternoon at four o'clock, March third. Montclair has done well in the Liberty loans and the war funds of the Red Cross and the Y. M. C. A. This we have done without the assistance of any widely known big men, in Which I take the liberty of classing you. You once lived in Montclair and the to-n is proud of the fact and I truly believe it will mean much, if your time will permit you to participate at the proposed meeting. I have talkei with Harry Meyer slid he joins with me in the renuest that ycu -q11 come. I promise, if you do, Yontclair will buttAi its coat and throw cut its chest. The time for the meeting is set, all other conditions will be arranged absolutely according to your wish. I personally hope that you will come and spend the night with us. You can rest and take it absolutely quiet or we will arrange to have acme of your old friends at the house, if agreeable to you. Very sincerely yours, FOUNDED APRIL 5. 1760 PRESIDENT EUGENIUS H. OUTERSRIDGE VICE -PRESIDENTS ..FREED E. MARLING CHAMBER OF COMMERCE ,NToN A. RAVEN ILIA M SKINNER ...EVEL-AND H. DODGE OF THE STATE OF NEW YORK PHILIP A. S. FRANKLIN JAMES A. FARRELL SAMUEL REA FRANK K. STURGIS HENRY P. DAVISON SIXTY-FIVE LIBERTY STREET HENRY HENTZ EUGENIE DELANO NEW YORK T. DE WITT CUYLER TREASURER SEC R CHARLE T. GWVN NE ASSISTANT SECRETARY WILLIAM H. PORTER JERE D. TAMBLYN CHAIRMAN, EXECUTIVE COMMITTEE WELDING RING January 22, 1918. Hon. Benjamin Strong, Governor, Ferderal Reserve Bank, 15 Nassau Street, City. My dear Nr. Strong: I am in receipt of your letter of January 18th and the quested. enclosure which you have filled in as re- I am, however, putting you down as serving as Chairman of the Liberty Loan Committee, as that service should of course be noted on our records. Thanking you for your interest and cooperation, I am, VeryltUlY yours, \-Secretary. ALRICK H. MAN C. G. M. THOMAS A. CHALMERS CHARLES President Vice-President EUGENE L. DELAFIRLD Secretary Comptroller D11.FORS Al)i1/4 Brooklyn Woodruff Leeming Howard F. Whitney ()liver E. Yale Queens Thomae John E. Weier Richmond Stacy C. Richmond Medad E. Stone erbert J. Bickford Incorporated by Special Charter May 18th,1917 Manhattan Chalmers Charles C. Ward Crampton H MP ILL ref Federation of the Councils of the ,s11. 1) st.%0 Bo Scouts of America oci in the City of New Or Bronx Eugene L. Delafield William E. Freeman Thomas W. Whittle EifJ. JOHN ROY reactive Secretary Succeeding the Advisory Committee C. ELMORE SMITH Chief Campmaster Victor F. Ridder n Street OCT 13 Telephone, Hanover 5215 OW" tY071 10mIt %At ric % October 10th, 1917. Benjamin_ Strong, Federal Reserve Bank, Pine and Nassau Streets, New York, N.Y. My dear sir: The Federation of the Councils of the Boy Scouts of America in Greater New York has requested me to invite you to take part in the rrogram of a general meeting of the Boy Scouts of Greater New York to he held at the Seventy-First Regiment Armory Saturday Octo'-er 20th, at three ( Park Avenue and 34th Street ) o'clock, , on this meeting being held for the rur- rose of lending enthusiasm to the work of the Boy Scouts in obtaining subscriptions for the Liberty Bon is during the last week of the camraign. Mayor iiitchel has agr ad to address the scouts on this occasion and we are particular- ly anxious that you shoull present the War Service medals to the scouts who earned them by obtaining the largest number of subscriptions during the ^re- vious camraign. I sincerely hope that you will be able to accent t'lis in- vitation and feel sure that the reward in the shape of subscriptions will be gratifying. Yours very sincerely, AHH.M "BE PREPARED" President. "DO A GOOD TURN DAILY' 7 Cfeie RECEIVED OCT 5 1917 ., .11 7$:-1(/7-11 xc Hon. Benjamin Strong, Governor of the Federal Reserve Bank, New York, N. Y. October 4 MAIL 1 ELLER FEDERAL RESERVE BANK of New York Dear Sir:- In your instructive article in The New York Times Magazine of September 30, 1917, entitled "Economy or Government Confiscation", you explain how the Government might act to procure, for example, a ten billion dollar loan, affirming that: "The Government would then proceed to collect taxes enough during the period that these bonds are outstanding to enable it to pay the interest and to amortize the principal; that is to say, to set aside a sufficient amount every year for the retirement of the principal of the bonds, so that the total would have been retired at maturity." Does the Liberty Loan Act of April 24, 1917, (authorizing the issue of bonds not to exceed $5,000,000,000 for the national security and defense), make any provision "to amortize the principal", by annual contributions, so that the total would be "retired at maturity"? Does the recent Second Liberty Loan Act have any such provision? Has the Secretary of the Treasury, merely ex officio, the power to create a sinking fund or funds for such purposes, sinking funds that would grow into billions of dollars and put Has the initiation of a premium on a huge financial travesty? such sinking funds been commenced? Furthermore, is the concealment or silence as to the interest charges upon these Liberty Loans prudent? A $_3,000,000,000 25-year 4°4 Liberty Loan means also $3,000,000,000 of interest, or a total liability of $6,000,000,000. As no provision appears in the Act, or is announced by the Secretary of the Treasury, for the amortization of the principal of these Liberty Loans, it is the payment of the interest, semi-annually, that affects the present generation, not the payment of the principal. So if a total war debt has already been accrued by . Benjamin Strong. -2- Oct. 4, 1917. the United States of about $20,000,000,000, principal, if that is ultimately to be outstanding on an average of 25 years time at 4%, the total obligation that the country is already committed to is about $40 000 poo,000l The general practice - both at home and abroad - of omitting the practical effect of the interest element of these war debts, appears to be as uncandid as unwise. Maurice Trinquat, in his De L'Amortissement des Emprunts D'Etats, published in Paris, in 1899, wherein is a bibliography of the literature on Sinking Funds, including ninety-six works in different languages, concludes that Finance should be so simpleas to be easily understood by all classes, and that the easier it is the nearer it is to perfection (p. 381). He agrees with the eminent political economist J. B. Say in that there are no two ways of extinguishing debt; the only way is, for a State as for an Every other individual, to use the revenue above the expenses. form of extinguishing a debt is a pure folly, wherefrom no His opening chapters advantage accrues to the State (p. 385). aim to show that morally, politically and economically amortization (extinction rather than conversion) of public debts is a necessity. He maintains that for the public to free itself from the obligation of paying debts is to encourage itself to incur infinitely new debts (p. 78); and he quotes Ricardo, that Sinking Funds rather tend to encourage expenditure, than to diminish debt (p. 209). When Congress assembles at its next session the amortization of our Liberty Loans should receive prompt and most serious attention. As an English writer - Mr. Walter Jonas, in his brochure on"National and Municipal Finance", p. 36,- says:"Financial stability and sound credit are more essential to success in war than dreadnoughts, guns, or anything else." I know of no stronger blow to give the enemy of Central Europe than to have them realize that the United States now adopts Show that to the the principle to "pay as it goes" for this War. World, and our pre-eminence both in present warfare and in future trade and fiscal leadership ought to be assured. Assuming Sinking Funds to be impracticable for these immense Liberty Loans, the precise mode of applying the Serial method of payments to such Liberty Loans (keeping in mind, also, the conversion of the first 31% Loan into 4% or 41% loans) is a matter of careful study and computation, when contrasting it with the four variations incident to Sinking Fund calculations. Refunding at the end of 25 or 30 years, no matter what foreign precedents exist therefor, should be proscribed. Many . Benjamin Strong. -3- Oct. 4, 1917. disasters and even revolutions in Latin America and elsewhere have been due to refunding when such might have been avoidable by amortization. As our Liberty Loans now appear to be undertaken with no provision but the Nation's credit for the ultimate payment of the principal of such debts; and as the Serial Method of such payment is beyond a doubt the safest and least expensive way to pay such principal sums; it is impressive to note that the difference in the interest account between the method now adopted by the Secretary of the Treasury with these Liberty Loans and that of the Serial Method, is $480,000,000, in favor of the Serial Method, on each $1,000,000,000 of principal for 25 years at 4%, or a difference of $2,400,000,000 on each $5,000,000,000 of principal at the same time and rate. Yourinfluence to secure the requisite Congressional Legislation to meet this situation is earnestly expected. Sincerely yours, ADC-S. .icing. Boston Daily Advertiser, June 5, 1D17 States, Municipalities, Banks, Institutions.) countants of Ontario, has pronounced 'the day of the sinking fund as past.a insisting that 'the sinking fund is municipality.' SERIAL PAYMENT curse to the average (Macpherson. Municipal Accounting, pp. FOR LIBERTY LOANS Attorney Alfred D. Chandler Says it Should Save $2,500,000,000 26. 28). "With the advent of the present war this sinking fund issue was suddenly affected by international incidents, forcing New York City on the closing of its Stock Exchange following the war's outbreak, Aug. 1, 1914, to recognize' in part thereafter the serial method, simultaneously with the special banking arrangement made to meet that City's $100,000,000 obligations presently due in London and Paris. (Resolution of Board of Estimate and Apportionment, City of New York, Sept. 11. 1914). "The agitation of that issue helped also to impel' the New York Constitutional Convention, of 1915, unanimously to recommend an abandonment of the New York and English sinking fund method and to follow Massachusetts' hegemony in making serial loans comConstitution of N. pulsory. (PrSecopt. Art. IX. Sends Open Letter to Sec. Y."Sinking Funds for great national loans are impracticable, and put a McAdoo in Which He premium on waste and worse. A $5,- SINKING FUNDS ARE IMPRACTICABLE, HE SAYS 5)osed . 000,000,000 30-year 334 p.c. loan would ultimately require a sinking fund of $2,- Outlines Plan 864,330,000 ( I) on a 334 p.c. basis, to waste. He states that a $5,000.000.000 pay the principal of such a loan at maturity. The sinking fund pays no part of the interest. The interest would be $5,250,000,000 in addition! "The investment (if possible) and care of a $2,864,330,000 sinking fund throughout its gradual accretions, and by successive administrations at Washington would invite a huge financial travesty, far out-matching the well known state sinking fund blunders at A'bany, or the conduct of the New York City sinking funds (about $400,000,000 . the theory of which is confessedly shattered every week in the published summaries of that City's financial operations, last week's published balance of its sinking funds uninvested, as of May 000,000 in addition. method of a little over Alfred D. Chandler of 70 State st., a well known Boston lawyer, has sent an open letter to Sec. of the Treasury William G. McAdoo in which he points out that the United States Gtr-ern- ment would save over $2,500,000,000 on each $5,000,000,000 by paying off the Liberty Loan issues in serial form, rather than by a straight loan. Atty. Chandler declares that sinking funds for great national loans are im- practicable, and put a premium on 30-year 334 p.c. loan would ultimately 19, being $9,561,349.60! (N. Y. Times, require a sinking fund of $2,864.330.000 May 23. 1917). "Every $5,000,000,000 30-year 3 1/2 p.c. to pay the principal of such a loan at straight loan means also $5.250,000,000 maturity. The sinking fund, he says, of interest, a total cost of $10,250,000.000. pays no part of the interest. The in- cost ofBut ifa in Serial form the total such loan is only terest, he points out, would be $5,250.- 000, a difference iq favor 87,712.600.of the serial "Every $5,000,000,000 30-year 334 $2,500.000.11.. for each $5,000.000,000 loan. "If such a bond issue was at a 4 p.c. p.c. straight loan means also $5,250,- rate, the difference in favor of the Seri$2,900,000,000; and 000,000 of interest, a total cost of $10,- a' method would bethe difference would if at a 4% p.c. rate 250,000,000," he says. "But in the be $3,262,600,000 In favor of the serial serial form the total cost of such a method. loan is only $7,712,500,000." the 'instalment' serial method, or equal annual instalments of the principal. Under the 'annuity' serial method, or equal annual instalments of both principal and interest, the difference above indicated would be somewhat less. "The serial method secures also two invaluable benefits in war periods: (1 It maintains and strengthens national credit ; and (2) it iustly divides cost between present and future. "Both future national issues of unknown billions, as well as the future Mr. Chandler's letter is as follows: "70 State Street, Boston, "June 1, 1917. "Hon. William G. McAdoo, Secretary of the Treasury of the United States. "Dear Sir: "Accustomed for over 40 years to meet concrete administrative issues, let me by this open letter, emphasize some facts that taxpayers are to face under the Liberty Loan act of April 24, 1917. "That act authorizes an issue of bonds not to exceed $5,000,000,000 for the national security and defense. Subsequent acts will authorize more. The above computations are based on 1 conversion of the present 2.000.0nn A 2% p.c. issue into bonds of a higher rate, thus present fiscal questions of a magnitude and nature of the deepest to taxpayers in the United "The terms and conditions of such a concern testing their sustained loyalty to bond issue are not given in that act, States, for coveted peace. contend which was hastily passed, but are left "Respectfully yours, 'as the Sec. of the Treas. may prescribe.' "Alfred D. Chandler." Such power is vast and far reaching. From the Boston Daily Advertiser, "No sinking fund to pay the princiJune 8, 1917 pal at maturity of the $5,000,000,000 bond issue is provided for in that act. McADOO REPLIES TO Does the power to create a sinking fund rest with the Sec. of the Treas.? Will he initiate such a fund? We have no CHANDLER'S LETTER official information thereon as yet. Can a real (not a pseudo) sinking fund be States He Is Considering Serial Form Plan for Loans loan may be either a straight loan the successfully maintained on such a scale? No. "But if not, then the $6,000,000,000 principal of which matures say at the Secretary of the Treasury William end of 30 years, or it may be issued to G. McAdoo has forwarded a reply to be paid serially, as Massachusetts and the open letter sent him by Alfred D. some other states issue their loans, onethirtieth of the principal to be paid each Chandler of 70 State set., a Boston year, thus liberating for new uses about lawyer, which pointed out that the corwith a $167,000.000 each year. responding annual reduction of the in- United States Government might save terest account, and an ultimate enormous saving in interest "Why is a great national sinking fund impracticable? During our Civil War the Act of 1862 provided for a sinking fund of 1 p.c. It became of no effect. As John Sherman in his Autobiography wrote (Vol. II. p. 877) :- 'There is no actual fund of the kind in existence for national purposes.' In England the successive failure of sinking funds, it is said, 'made the term Sinking Fund almost one of reproach.' (Sargant, Sinking Funds, London, 1868, Again :- 'In 1816 a Sinking p. 82). Fund was commenced in France, on the principle of Mr. Pitt's English one. It over $2,500,000,000 on each $5,000,000,- 000 loan, by paying off the Liberty Loan bond issues in serial form. Secretary McAdoo in his letter states that the serial form issue is having his serious consideration. He states he is in sympathy with the idea and proposes to use it as far as practicable in carrying on the financial operations of the Government_ The reply of Secretary McAdoo is as follows: "The Secretary of the Treasury, has long ceased to produce any effect "Washington. (En Route) but that of creating confusion in the "June 5, 1917. accounts.' (Idem. p. 131) England, persisting in Sinking Funds, yet suspended "My Dear Mr. Chandler: the Sinking Fund in 1886-7, after the "I have your letter in reference to war in Egypt, and again more recently on account of the Transvaal war, re- issues of serial bonds, sinking funds, liance being placed on the Nation's cred- etc., and have read it with much init for the final liquidation of these terest. The questions you suggest debts. The late Professor Dunbar of Har- are having my very serious consideravard University. in his Economic Es- tion. says (p. 84 et seq Ed. of 1904, refer"I do not hesitate to say that I ring to Mr. Pitt's famous Sinking Fund system which was swamped by the gi- have never regarded with favor the gantic wars of the French Revolution. sinking fund idea with respect to pubaffirms that it rested 'upon a complete lic loans. The serial method I regard Illusion as to the possibility of holding Parliament permanently to the system- as far superior. Of course, the quesas to the possibility, that is, of binding tion of serial issues must depend upon the debtor by a compact made with the situations that have to be met. himself.' "After our Civil War, the wonderful "In the future financial operations prosiliency of the Nation swept aside of the Government, issues of aerial the Sinking Fund requirements of the bonds as far as it is practicable to 1862, reducing of Congressional Act them to a mere perfunctory bookkeep- adjust them to the necessities of the ing entry. "During this century Massachusetts case, and as far as it seems wise to has led the world in its legislative dis- adopt them as a matter of policy, will approval of public sinking funds. On be made. the other side of the Atlantic, England hes tried to retain this financial sink- "I cannot be more definite than ing fund anachronism at nome, and to this; I must only express my sympainculcate its adoption over seas in mak- thy with the idea and my purpose to ing foreign loans ; but on this side make use of it as far as practicable Massachusetts rejects sinking funds as in carrying on the financial operations out of date, unreliable and too costly. "Massachusetts is right ; and as the of the Government. principles of sound finance are universal "Very sincerely yours, England may yet discontinue the sink"W. G. McAdoo. ing fund method, both at home and abroad. "Alfred D. Chandler, Esq., "Many a revolution and receivership "70 State Street, is due to sinking funds. Mr. Macpherson of the Institute of Chartered Ac- "Boston, Massachusetts." C.A.HAZE N, PRESIDENT. HARLES L. WISE,TREAsuRER. f I I I [ NiaLII ,RECEIVED SEP 21 1917 740 12 AMERICAN EXCHANGE NATIONAL BANK BUILDING 128 BROADWAY THE LEADING BAN KING PUBLICATION 00,47. t;-3 NEwYoRK OF AMERICA. Lc:pt. 20th, 1917 --L-JIR at h ©w York Hon. Benjamin Strong, Jr.,Governor, Federal Reserve Bank, New York City. rimProci rt Dear Sir: 7e will be under obligations to you if you can furnish us with an advance manuscript (confidential) of your forthcoming address before the American Bankers' Association at Atlantic City. We expect to report the proceedings in full in our extra edition to be i:lsued immediately after adjournment, but it will be a convenience to have the matter in type before the date of issue. '7e have followed this plan in the past to the satisfaction of everybody, and bespeak your co-operation and consideration. Respectfully yours, PL B' ISHING AND CALI F OR N IA BANKER PACIFIC COASTS OWN BANKING PAPER. CAIIANT BANKER Pit i LISIILWO 576-578 SACRAMENTO STREET sAoNFIcv.cisco. PRESIDENT. OLIR HOME TERRITORY -0epta4ber Igh, 1917. GEO. P. EDWARDS. M LAIR Hon. 3enjamin Strang, Jr., Governor, Federal Reserve Bank, New York, N. Y. Dear lir. Strong: M1 you kindly favor us with a copy of the address you are to deliver before the Allerican Bankers Asso- ciation at Atlantic City to be used in the A. 3. A. issue of COAT 3AN1LZR, which will contain a complete report of the proceedings of the convention? An advance copy will be a :mat favor to us and will, of course, be held in confidence until after it is delivered. Very truly yours, GFE:1,11 _resident. -sag , L i.jP1 13P14br 8EP A 8 191, r.;17",,a74s t'Ltr Seetember 15, 1917. Doar Sir: Mr. Strong is curt no so privied vith work that I an obliged to ask you, in reply to your note of September lrAh, to excuse him from corn lying with your request. 7:ers it not for the pressure of t'ork, 1 am sure that he would he vary glad to do so. Very truly yours, Secretary to Mr. Strong. J. T. Stanley, Esq., reneging Editor, ita_risadjamlasishis..., 1,0 rest 32nd Street, New 'fork. }TAB 6171N---3-3-17-10M. EDITORIAL DEPARTMENT HE BROOKLYN D AU:S: WM. HESTER, PRESID.T. WM. V. HESTER, Sic. ARO TREAS. H. F. GUNNISON, SusinSS3 MGR. BROOKLYN, N. Y., iriokese~swwwrommowinnew Dear Sir: RECEIVES SEP 15 1917 FoAcixILE SeIt. 14y MAIL TEL Lr-R The Brooklyn Daily Eagle would very much appreciate lin advance copy of your aduress at the Forty-third Annual Convention of the American Bankers Association to be held in Atlantic City, September 24-L9. t. Hon. Benjamin Strong,Jr., Governor Federal Reserve Bank, New York City I.:a naginc, Editor PUBLICITY DEPARTMENT LIBERTY LOAN COMMITTEE MEMORANDUM FROM John Price Jones DATE To Mrs. McLaren SUBJECT Gover September 3, 1917. Strong's Ar- tic2 "Financing Governme Loans." Here is the revised proof of governor Strong's article. I promised that I would night, so if you could let me hay I would be very much obliged. JPJ/IWB. in in the mail to- it back this afternoon CROSS REFERENCE SHEET FILE No. SUBJECT FILE No. DATED 0",tciA-(4.-t-1--1 .°° re, /77 LETTER OF F 4,A) -*5 September 10, 1917. The Ihicago Banker, 407 Monadnock Block, Uhicago, 111. Dear Sirs: 'I have your request of the 6th instant for a copy of the address I will deliver at the American Bankers Association Jonvention the latter part of this month and shall be pleased to send you one when it is ready. As yet I have not prepared the address. Very truly yours, Governor. BS/113B September 10th, 1917. Dear Mr. An The article which appeared in the American Banker /4 to which Vr. Stone makes reference in the attached copy of letter was . rather a garbled affair and I will appreciate it if you will send him a correct statement of the intervier. Very truly yours, Chairman. A. P. Anderson, Fag., Executigs Secretary, Liberty Loan Committee, 120 Broadway, :ew York City. 'CV qi BENNETT SERVICE 111 110 tatts 3nurgtor Pfr°, RALPH 111.311P4IC EXECUTIVE COMMITTEE ARTHUR H. BUHL 310NEV T. MILLER vicE JAMES C. DANAHER VICE PRESICIENT CH " c` '16MT;IP. . 3 P. SPICER JAMES COUZENS ev. JAMES E. DANAHER CHARLES A. DEAN JOHN M. DWYER so.wcsIDFFsecgmrAFty R3ON SROWNINCI VIOL PRESIDENT E nin0 CHARLES C. HILTON AssIATANT SECRETARY HARRY L. 3TANTOH FREDERICK J. 1:10AVIN JULIUS H HAA55 RICHARD P. JOY ALEXANDER I. LEWIS ALBERT .tfrksAN SIDNEY T. MILLER EDWARD D STAIR THOMAS C. STARRET RALPH STONE JULIUS C. PETER TwE FRED WIXSON MARCIER AV DAVID T. LOF/IMER MANAGER REAL ESTATE PE.... REMY Emintarri Tinrwr Oriniativy CAPITAL AND SURPLUS 52,000.000 1' DErrIt11111' ISIIICIliGAILAT Obroommec September MiNti Honorable Benjamin Strong, Jr., Governor, Federal Reserve Bank, New York City, N.Y. 7,1917SEP 10 .4- :)*P 11 !!:17-nE BMW Mai agat Maw Tura My dear Mr. Strong,- I have seen a reference to an article written by you which appeared in the American Banker, on the general subject of Governnent War bonds, methods of advertising and selling them, reasons why the people should save out of their earnings in adv.nce of issues, et cetera. I do not know in what issue this appeared, but I am very anxious, indeed, to read it. If you have an extra copy, mil ht I trouble to send me one; or, if not, would you do me the favor send this letter to the"American Banker; with request forward me a marked copy, charges collect. The favor be very greatly appreciated. you to to will I am treasurer of the central or executive committee here in Detroit, having the sales of Liberty bonds in charge. Yours respectful 11S. toEi President. Founded in 1898 S THE CHICAGO BANKER HARRY WILKINSON Editor- President r 407 Monadnock Block Telephone Add reap CHICAGO September 6, 1917. Harrison 4499 otepC"''4163111 Sit Benjamin Strong, Jr., Gov., Federal Reserve Bank, New York City, N. Y. Dear Mr. Strong:- 15 "*" inirmswiwi oswavol Will you kindly send us a. copy of your address to be delivered before the American Bankers Association Convention to be held at Atlantic City, September 24 to 29. We would be pleased to receive it by September 20, if pos ble. The proceedings will be printed in the September 29 issue of l'H7 r'AIr'Arlt) PANT71"P. Thanking you in adva.nce for this favor and appreciating: your very prompt attention, we are Yours very truly, TPT! r1FTmA(70 PAr7r,P. August 24, 1917. Dear Mr. Forbes; I should like to accommodate you in the matter referred to in your letter of Lu,;ust 22nd, but I feel that it would be a mistake for me to do 80 just now. Reerettinc; that I cannot be of service to you, I am, Very truly yours, governor. B. C. Forbes, Esq., Equitable Building, New York City. BS/ BAH ,'ugust 13, 1917. Dear Sir: Will you be good enough to let me have the revised pages of Mr. Strong's article "Waste and Economy." These whereas the can be identified by being written in elite type, original manuscript is ig piker. These will be returned some- time during the day. Thanking you, I am, Very truly yours, Secretary to Mr. Strong. Roland a. :%)Elvare, 2sq., :;ecretary to Mr. h1merson, National Bank of Commerce, New York City. ti 128 GILPIN STREET DENVER. COLO. SUNG DEM Aug '; tai917 Mtn We Denver, Colorado, August 3, 1917. Dear Mr. Jay: I enclose copy of a letter I am just sendinE, Emerson, with copies of the manuscripts referred to, and will be glad to have you collaborate with him in any changes that you find desirable. I am looking forward to seein you next week. regards to all. Sincerely yours, Pierre Jay, sq., Federal Reserve Bank, New York City. BS/CC Enos. Best ..)enver, Colorado, Aucust 5, 1917. --)on s. r:merson: iInclosed aro two manuscripts, - one on ste and r]conomy and tho other on Financing; Government loans - which have d in rosponso to your earlier letter about maga- sine or newspaper re rticlos, and then hurried to completion in .nso to a tole an from I]±. Jay, followin aro not it to suit yoursel in case of"Fin The ortant and you can change them atoria ing Governrnon filled in from t also is very hastily prepared and Ica ooks at ortain figures aro to be - of the articles is somowhat longer than to cut it clown, if nocossa their rather rough shape an your talk with it to you or Lr. Jay Those t17. apologies for amplo authority you an hr. Jay to change them if it Booms necessary to do so I am much impressed with the nacos publicity in the country newspapers and of getting somo titularly, in the various farmers' journals, like the Farmers Hole Companion, Me Farm and fireside, and others of like character. It also strikos me that wo might distributo material of the character of these manuscripts to the other eleven l'ioserve Banks, with such instruc- tions as may be noecosary in order to avoid duplication. As a publicity proselyte you aro certainly a corkor, for I find myself submitting wit. the boot grace possible to -2- August To - your direction. Success to your offortsI Very truly youro, Cru fiat onal 3aa 3 of Commerce, i ow Yor:C Cite 1917. August 8th, 1917. Dear Sir: I have to thank you for your kind letter of July 23rd which accompanied a copy of the current is:ale of the "Economic -orldft in whidit you have been good enough to reproduce the article I wrote on the subject of savings. Needless to say, neither the writer nor, in fact, any of our loan organization ex,-ect very much in the way of direct results from that kind of publicity. The only thing accomAished is that it stim- ulates a certain amount of thought and discussion on the part of a comparatively few people who are reached by such articles and certainly of that I have some evidence in the number of letters which have been written me since the article was published. On the other hand, stimulation of interest and thought along these lines is simply rreparatory, as you know, to the creation of machinery which will make it possible with the least effort for all classes of people to set aside savings. The American environment has not developed the habit of saving as a national characteristic, nor can it be expected to do so except by some artificial stimulaton. That must be provided by propoganda and simnle machinery which is not available. I am inclined to quote a favorite expression of my father's "That is worth having is worth working for" and say in re ly to your si -2- To rr. Yersh. 8/8/17. comments on this subject that we must make the effort to cultivate the habit and our reward will n t bs simply sales of government obligations but rather a permanent elration of standard in the matter of personal expenditure necessity for which will be even more apparent after the war is over than it is just now. Once more, let me thank you for giving space to this article and I hope that you will feel ineined to do so with other sir41-ir articles when I or those aennciated with me have the temerity to ~rite them. I beg to remain, very truly yours, Governor. A. R. Marsh, Esq., Editor, "The Economic World," 80 All Street, New York City. BS/VCM - 30 -2- ing t 1 fear that we must reckon with the general principle "average" in the that the "average" of the will to save - using insurance sense - in any population of any country is decidedly low, and that to raise this average by even a small amount is one of the most difficult of human undertakings. Comparative statistics of a considerable variety of countries seem to indicate clearly that under normal conditions only about fifteen per cent of the population are really capable of saving, no matter what their income may be. Of course the introduction of a powerful motive, as for example, the motive of the protection of the family, in the case of life insurance, may appreciably affect the average of sating in an upward direction. Similarly, an appeal to patriotism should increase saving to a certain extent. I greatly doubt, however, whether by an.possible device, except the compulsion of taxation, or by any possible appeal the actual savings of the American population can be increased by as "inch as 1,000,000,000 a year. The experience in Great Britain with the war- savings associations would seem to indi- cate that taking our population as against that of Great Britain it might be possible to approach $1,000,000,000 of savings in this country. We must remember, however, that for one year at least the war will not be the dreadful reality to the people of the United States, which it had become in 1916 to the people of Great Britain. I do not mean, of course, by what I have said to imply that efforts to induce greater saving on the part of our people are futile. On the contrary, I regard this as of the greatest irportance, but, frankly, this importance seems to me in the main to lie quite as much in the psycholog NATIONAL BANK OF COMMERCE IN NEW YORK ORGANIZED 1839 CAPITAL SURPLUS AND UNDIVIDED PROFITS OVER FORTY- FOUR MILLION DOLLARS GUY EMERSON VICE PRESIDENT August 6, in?. Mr. Pierre JAy, \0 le ,4e0/4a1 Reserve 3ank, lr. I Eew York, N. Y. ear Mr. Jay: Today I received in Mr. Emerson's mail a letter and two articles from Governor Ttrong. Governor Strong desires a few figures which are in possession of the Feeral Reserve _ank inserted in one article and desires L. Emerson or yourself to see these articles before they are publisheu. As we particular- ly desire to have these articles made available for publicity purposes In connection with the coming Loan, I would greatly appreciate it if you will look them over and return them to me at your earliest convenience with any remarks which you may care to make. One of these articles will, doubtless, be useu in the North American Review. ',mere the other will be placed will doubtless be decided by Lir. Jones who Mr. Emerson has placed in charge of News, subject to any desires that you may have. Jith best wishes, Very :j ours, Secre-ary to Mr. Em I CROSS REFERENCE SHEET FILE No. SUBJECT SE FILE No. ---.4.Q. L-ET-T-E-Ft 0 F DATED / 44-6k7- '7io - 0,5, The Economic World OLD SERIES, VOLUME ONE HUNDRED SATURDAY, JULY, 21, 1917 NEW SERIES, VOL. XIV, No. 3 Things and actions are what they are, and the consequences of them will be what they will be; why then should we desire to be deceivedf-Bishop Butler's Sermons at the Rolls. he recent severe nd for most persons Pr rations for the ons of the rate for call money-when Next Issue of United our Allies ust be obtainedStates War Bonds through investin: public of the bonds approHAT pr- arations for recisely s the funds we ourselves ex- the sale of another large instalment of ar from d nav purposes are obtainedbonds of the United States are already under w. scarcely ar ..nds. In view of the facts just requires saying. There are abundant of the governbli mind-not to speakevidences that the Government is having the same the flotation in repare itself forexperience with the unexpected cost of the preliminary preparation for ou own of of the $3,000,000,000 of bonds that part in the war that the other belligerent nations, witho t exception, have had. Furtherthe $5,000p00,000 of war bar.c.ic or our ownmore, it is apparentneeds, call of our Allies upon us for military and naval that t financial assistance is provi to be both more immediate e $6,000,000,000 to $8,000,000,000 of h those forand upon needs and those our own a much larger seal: than had been anticipated. nces to our At the rate at which to see Allies. It is hard the $3,000,. ,,000 allotted by Congress for advances to the Entente mount of the bonds of both kinds in coun ies is being exhaustedsting public by the end of the present somewhat more than $5oo,000,000 er month-this approl much short of $1o,000,000,000; at priation will hardly last beyond th end of October and ar cannot have progressed far before may easily have been apportioned at a considerably earlier seem to reflect date. Press despatches from Washin this obvious general opinion among officers of the overnment th a necessity is being given 1 n by the leaders ofthe end of September a second a ropriatio of before the Government, ve or congressional; this purpose, amounting perhaps to , 000,. ,000, bonds for though tangible selves erminationswill be necessary. are still they are reaching Estimates of what we sh t has been reported spend public press and Navy during . t is for have to in the on our Army Treasury rather tly risin: McAdoo has already cone public the remaining $3,000,000,000 es of the ervic such ar loan for domestic use, towards the ed ; nd at an interest rate of 4 per cent, in- ent borne by the $2,000,000,000 already n reported, however, that Mr. McAdoo hat the time, the rate of interest or the ssue has as yet been decided upon. t the over-subscription of the Liberty hat for a brief period after its issue t demand for the bonds to lift the price have convinced the Secretary of the ministration as a whole that the forth- adily be sold on the interest basis of te allowed by the terms of the authorss. There has in fact been no authoriintention with regard to the next war rt of Mr. McAdoo or any other officer On the other hand, there has been this of concrete evidence to the effect that f. a further sale of war bonds are alWe efer to the conference held in New day st, at which were present repreberty oan committees of the Federal oston, ew York, Philadelphia, Richd Chicag together with Mr. Paul M. ernor of th Federal Reserve Board, and ves of the merican Bankers Associunced that th object of the conference s and means of making still more effimachinery which, was devised for the 76 THE ECONOMIC WORLD JULY 21, 14 But even in the fulfilling of the most sacred patriotic duty, the requirements of Clearly, a conference of this kind would have been qui justice that they nnecessary, unless those participating in it knewand equitableness, as between those who are spendould shortly be called upon to resume theing themselves and their possessions in the cause, must not task which they e forgotten. This principle, as we think, applies to the s admirably fulfilled a month ago. L'berty Loan bonds recently sold ; and we cannot better The American people, therefore, has immediately ahead bri g out why we of t a subscription to a new issue of United States war think so than by quoting a passage from Pre 'dent Wilson's admirable message to the American bon s, whose amount cannot possibly be less than $3,000,publi on the are 000,. . and ought, if sound principles of war financingsubject of war profiteering. Said the President : "A 'ust price folio d, to be from $5,000,00o,000 to $8,000,000,000. Tomust, of course, be pai,d for everything the Govern ent the be sur it may be advisable from the point of view ofbuys. By a just price I" mean a price which will and credit, smooth working of the machinery of banking sus' in the industries concerned in a high state of spread over a to divid the subscription into instalmentefficiency, rovide a living for t 'se who conduct them, to period of several months; yet the fact re' enable theit will pay good wage and make possible the ains that expansions o their be hazard us and improvident for the Government to plan enterprises w ich will from time to time become neces ary or for the ublic to expect the raising less than $6,000,- as the stup dous undertakings of this war develop. °moo° at ast through the sale of w r bonds before the e could not isely or reasonably do less than pay such p - efiEloi the current year. In our opinio , this stern prospect ces". Now, mutatis makes it imperative that before the ampaign for the sale utandis, ery word in this passage ap1\ plies exactly to of any amoun , great or small, of the ew bonds is launched, t duty of the Government and of the country perfect something more should be done tha to make morein the matt of e terms of the war bonds which the general This and efficient e mere machinery of distribution. public, o al degrees of wealth, is called upon to invest bonds something is to examine afresh th character of theits capital i that the war may be successfully carried on. The Loan bonds sinned against the themselves whic the public is to be asked to subscribe to Lib principle of the in such vast qua tity. When w say "the characterenounced b P sident Wilson, first, in that the interest rate and bonds themselves , we have ref ence to the economic of 3Y2 er ce borne by them is not "a just price" for of the social justice of th terms of the bonds, the accuracy investme t capita n the United States, not only at the present ti but for y rs past, as is demonstrated adjustment of thos terms to e financial environment in erest return at least which the bonds, investor, large or by the average ce bong' t by the per cent-obmust inevita. y in t long run find their place, tained by life surance comp s ies, savings banks, and g good or ill f t r the vestor himself in the process. similar trustees of the property an, rights of vast numbers en the campai fo' the sale of the Liberty Loan of persons; an , second, in that th tax-exemption feature e found to our extreme regret of the bonds ade the price paid for t e capital enormously was in full swi could not consc tiously and enthusiastically urge higher to cer ain classes of buyers of t bonds than to all s and conditions o Americans to use whatever finan- the rest. H re are gross injustices that s uld be remedied ources they mig ossess for the purchase of those in any furt er issue or issues of war bond Let the "just even at a time o n ed for the country. We greatly price" of A per cent interest be paid on s h issues, and ed the skill and nge uity with which the campaign let the pr ce paid to the very rich be made the me as that nducted, the di ersit of the expedients devised and paid to hose of moderate or scanty means, t ough the yed, the variet and e oquence of the appeals made imposit n of income and other Federal taxes on the t should be t e deepe of all motives in citizens of revenu derived from them by their owners. Then e can country, patri i tic duty. Yet we could in no wise and all w le-heartedly and with conviction urge the buyi of method of r asoning di st ourselves of the convic- the by every class in our society. at the terms of the bonds ere not just and equitable, Arthur Richmond Marsh rds the gr at mass of these who were particularly o put the all in them. ortunately the issue was THE PREVENTION OF CREDIT INFLATION ely so sm. 1 that it was a f. egone conclusion that it THROUGH WAR LOANS BY SAVINGS n the en be taken by pers. s, enterprises and instiIN ADVANCE OF THE LOANS. of meavis so large that the might well and justly their c untry whatever the might suffer-though By Benjamin Strong, Jr. of them y reason of the progr ssive income tax must now in process distribution of the $2,000,000p00 of the Liberty Loan bonus.of determination. rily in-as a result of the onomic and financial ces w rked by the terms of t' e bonds. Hence we eliev d of all fear lest the co try fail to get the it needed. krjow very well that in saying what we have just e 4f4 exposing ourselves to the re putation of coldwaNs the country itself and towa s its great cause. ll not attempt to answer such an mputation, since eve that those who have read us \long know well eply we have felt the obligation of the United States every one of its citizens to participate, at no matter ost, in the great struggle for democratic civilization Governor, Federal Reserve Bank of New York; Chairman, Liberty Loan Committee. WHILE this country, with its vast material and banking resources, has made a notable record in the facility with which large loan operations have been conducted -the largest until recently being the placing of the Anglo-French bonds-it has nevertheless been apparent during the past two months that people have not fully grasped the significance of a loan of, say, $2,000,000,000, the entire proceeds of which must be paid over in a very short period,-i. e., as we say, "in cash". Government loans of this magnitude, necessitated by the war, require a thorough examination and understanding of the principles of LILY 21, 1917 THE ECONOMIC WORLD 77 credit, as otherwise unskilful management of operations of that Mr. U. S. A. No cash reserves shift, no loans would need to be size are certain to put banking machinery out of order, and dis- called and no change would take place in the balance-sheet of the bank in respect either of assets or of liabilities. ordered banking machinery means disturbance of business. The third class of possible bond buyers is that which has bank No loan of $2,000,000,000 can be paid for, as we commonly express it, "in cash". The amount is too large and payment must accounts but has no surplus balances in bank to spare for investbe made by complicated bookkeeping operations which can be ment in Government bonds. Having credit at the bank, however, roughly described as "transfers of credit". To do this success- persons of this class are induced to buy Government bonds and fully, credit must be shifted from the account of one bank deposi- borrow from the bank temporarily in order to pay for them. tor to the account of another bank depositor; from one bank to This is the least desirable kind of buyer of Government bonds, another bank; from one part of the country to another part of the although a necessary one at the commencement of the war when country;-and these shiftings of credit involve a temporary shift- the expected savings of the future must be advanced to the Goving of a certain proportion of bank cash or reserve money, and ernment. Such a bond buyer pays for his bonds out of a bank deposit which is created by making a loan. The deposit so made therein lies the danger. If every purchaser of Government bonds could make payment is transferred to the credit of the United States of America and at his own bank and the amount of the payment be transferred and the bonds are turned over to the bank by the buyer to secure by that bank to the credit of the Government, then the credit the bank for its loan. By that operation, bank deposits and bank could be disbursed by the Government in the community where loans are both expanded and the percentage of reserve money held the bank is located and no disturbance of credit whatever would by the bank is correspondingly reduced. Loans of th,:t character arise, because no bank reserves would need to be shifted. In a cannot be avoided, because the general rule is that earnings that great loan of $2,000,000,000, subscribed and paid for in varying are converted into savings become capital and are usually inamounts in all parts of the country, it is inevitable that prelimi- vested very promptly in securities, or in property, or in improvenary withdrawals of bank balances from one part of the country ments to property, so becoming unavailable for Government loans. to another will be made in anticipation of payment, and again In a general banking sense, it does the country no good to have its after the funds are placed at the credit of the Government through- citizens sell one kind of investment in order to make another kind out the country; they must then be gradually withdrawn to those of investment. Transactions of this kind produce no new money points where the Government has various bills to pay. The ma- or credit. Their justification is that all buyers of the class who chinery of the Reserve Banks proved to be adequate to meet the have engaged themselves to pay loans to their banks are forced necessity of shifting credits from one part of the country to an- thereafter to economize in order to pay off the loans; and in that other. Possibly a correct view of their function would be to say way savings out of future earnings are made available to the that they were the chief bookkeepers of the transactions; and, Government in advance of the earnings being made. The fourth class of bond buyers-and in some respects the most the books being kept in twelve separate places, at each of the Reserve Banks, the only shifting of reserve money occasioned by important of all in time of war-is the great body of wage-earners the movement of credit is that which takes place between the and salaried people who frequently have no bank account and twelve Reserve Banks through the normal machinery created for spend about all that they earn. There are many millions of such that very purpose. in this country whose material welfare will be improved and whose But let us look at the problem from the standpoint of the bond attitude toward their Government will be benefited if they can be buyer. There are in this country, (exclusive of a negligible num- induced to buy bonds. But how can this be brought about? Only ber of those who own securities of foreign origin which could be by showing them how to cultivate the habit of saving-and this resold in foreign countries), only four classes of people who can kind of saving should be developed in advance of investment, so as subscribe for Government bonds: to avoid the necessity for borrowing also. Take as an example, one industrial organization employing, The first class of buyers comprises those who have hoarded actual cash or currency in their houses or safe deposit vaults, who say, 20,000 laborers: If these men earn an average of $1,200 are induced to buy Government bonds and who produce that cash each per annum and can each afford to save $100 per annum, their for the purpose. Purchases of Government bonds by such people employer could enter into agreements with them by which, say, (of whom there are few in the United States), have the effect of $8 would be deducted from the payroll of each man every month strengthening the banking position because they bring reserve and deposited in bank for future investment. The aggregate of money,-that is, gold,-out of hiding and put it in bank reserves $50 apiece in six months is $1,000,000. During the process of where it serves as the basis of credit. The change occasioned setting aside and earmarking these earnings or savings, they in the Nation's general bank account as a result is not simply to could be temporarily invested in short obligations of the Governadd a given amount to the bank deposits, but also to add an equal ment, convertible at a later date into Government long-time bonds. amount, dollar for dollar, of reserve cash. France, prior to the By this process no permanent bank expansion arises. As rapwar, held a vast store of gold tucked away in peasants' hiding idly as savings accumulate, they are turned over to the credit of the places and the production of that gold in response to the Gov- Government, which issues its short notes therefor; and these ernment's call has immensely strengthened its banking posi- short notes later are converted into long bonds. The bank balance which was originally the bank balance of the employer out tion. The second class of potential buyers of Government bonds is of which wages were paid, has through the savings process been composed of the capitalists and corporations with balances in the transferred to the credit of the Government without disturbance bank in excess of their needs. When bonds are purchased by a to bank credit. Assuming that our Government finds it necessary, say, every member of this class, the owner of the bank balance, Mr. X. Y. Z., sells or transfers that balance to the Government in exchange for six months, to borrow large sums for war purposes, how readily a Government bond. If the Government leaves the deposit with might this be accomplished if all classes were induced to save in the bank which holds Mr. X. Y. Z.'s account, the effect of the anticipation of such investment in the bonds of their Government? transaction is simply a transfer of the balance of Mr. X. Y. Z. to The rich man appropriates so much of his income; the rich cor- THE ECONOMIC WORLD 78 poration so much of its profits; the poor man so much of his salary or wages. During the period between bond issues, these savings are turned over to the Government in instalments in exchange for short notes. When the bond issue comes along, the short notes are converted into long bonds. The whole operation has been conducted without the use of cash or reserve money, but by simple bookkeeping entries on the books of banks, which result in a grad- ual but constant transfer of bank deposits representing the Nation's savings to the credit of the Government. But the question will be asked: "Will not this enormous trans- fer of bank credit from individuals and corporations to the It will not do so, for these credits are not created by bank borrowings but by savings. The Government is spending money as fast as it receives it. The very credit so set aside for Government use must be instantly paid out by the Government for supplies, wages of soldiers and sailors and for the civil establishments. As soon as credit of the Government itself cause expansion?" the credit i-..scribed on the books of the bank for the use of the Government, the Government checks against it and turns it back to the very individuals, corporations and wage-earners who have produced it. A new credit is not created, but existing credit moves faster around this circle from the wage-earner and saver to the Government and back to the producer and manufacturer, and through them to the wage-earner. The speed with which credit moves in these operations bears a direct relation to the "speeding up" in the production of our farms and forests and mines and our manufacturing establishments. This country is confronted by a vast problem of finance, but, fortunately, with vast resources in gold reserves and credit machinery by which these operations may be handled. In furnishing the Government with the credits required, the primary necessity is for people to save and save in advance of the Government's requirements, in order that bond buyers may not be required to make loans at banks, to be repaid out of future savings. ECONOMIC DIFFICULTIES IN THE WAY OF SUCCESSFUL GOVERNMENTAL PRICE-FIXING.* discussion over the various proposals to regulate prices is into difficulties when it reaches the details. What fair prices and fair profits ? A percentage basis is usually assu d to be the best determination, but that ignores costs and efficiency amopg producers. General all differences have rejected that ba'sis of compensation for Goethals is said shipbuilders becaus it is unscientific and extravagant. Under it, the higher the costs he larger the,-profits. It is a recognized pr ciple arping economists that the price time tends to be fixed at a level of a commodity at any gi where it will afford a worki profit upon that portion of the market requirement which pro.. ed at the highest cost. There may be, for instance, a wide range o hosts in producing and delivering wheat at a certain market, resu ng from differences in distance from market, fertility of soil, effici cy of the producers, The price is/the same for all wheat, etc. d must be high the continued production of the h hest-cost por'equired supply, but as the supply is in ased from enough to indu tion of th low-cos sources, production on the margin of the sup y is no *Republished from the July circular of The National City Bank York. New JULY 21, 19: nger required, the price falls, and the high-cost producer is eliminated. The same thing occurs in all lines. There is a range of costs, deiiending on the location of the producer, the character of his equipment, efficiency of management, etc. One producer may be up-toAate in methods and equipment, perhaps the last in the field, or he .may have turned earnings back into improvements, while another has chosen to distribute earnings in dividends with the result that the former has lower operating costs than the latter and correspondingly higher profits when they sell at the same price. That is his reward for being progressive and constitutes the inducement to progress. The constant tendency in industry is toward improvement, lower costs, and the elimination of the high-cost pioducers. The leaders make the best profits, but all improvements soon become common property, and new leaders are always making the pace. In a time like this every possible source of supply is brought into use. In the iron business, scores of old, abandoned furnaces and mills have 'been refitted at much expense and put into opera- tion upon a basis of costs which would have been prohibitory at any other time in the last thirty years, and when the war is over they will be abandpned again. For the time being, however, they are needed, and pricps must be high enough to allow them to work. The same is true in other lines. There are great differences in the costs of mining coal, and corresponding differences in profits. As a general rule in the manufacturing industries the fact that aproducer enjoys unusual profits is proof, not that he is extortionate in his selling policies, but that he is a leader in low-cost production, and therefore rendering a greater public service than a competitor whose profits are less. If it is true that our industries are far below their possible output, and that not only industrial but living conditions may be revolutionized by bringing the average up to the level of the best, the public cannot afford to discriminate against efficiency, in its plans for taxation or regulat\on. Allowance, indeed, must be made for war conditions and necessities; taxation cannot be scrutinized as critically in all its bearingS as in time of peace; it is true that in time of great national peil the government must look for money where money is, and t lict t war-time profits are not to be judged on just the same basis as peace-time profits. But it is well to keep an understanding' of sound principles even when they must be compromised, and t is is particularly true in view of the certainty that the same kind of taxes will be advocated for permanent adoption. A graded sc le of taxation, increasing with the percentage of profit in indu4try, is unsound in principle, because it puts a handicap instead o a premium upon leadership, and penalizes the very methods which the public is interested in having adopted. It is neither just noi, according to sound public policy to deny to the efficient producSr the difference between his costs and those of the less economical producers in the same line, but a temporary system of even graduated taxation upon profits is preferable for its simplicity to a complicated system of government price-fixing. High prices are never welcome to those who have to pay them, but it is a great mistake to consider only their immediate and uncomfortable effects, without regard to the conditions which caused them or the part which high prices play in correcting those conditions. High prices are a sign of scarcity, the only real remedy for scarcity is increased production, and no othet agency is so . directly effective in stimulating production as high prices. They not only create an inducement but they supply the theans of enlarging the productive operations. Efforts to increase production now, in every liner must be TEL. 3859 BROAD ENCYCLOPEDIA AMERICANA CORPORATION a 27 WILLIAM STREET NEW YORK CITY EDITORIAL DEPARTMENT 131111010 ai Vernctober 13, 1916. Aftwollimmulr Pierre Jay, Esq., Federal Reserve Bank, New York City. Dear Sir: I understood from Mr. Youngman, who has charge of the Banking section in the Americana, that you had already agreed to prepare an article on the Federal. Reserve System, and I have beer looking for the manuscript for some time. However, as we were in no imrediate hurry, I did not wish to press you ad to time. I am very glad indeed to know that you will prepare this article - about 3000 words, and if we receive it ary time during November it will be in good season. Thanking you for your co-operation, 1 remain, Very t ply yours, rlfrva4 Yana, ng Editor. GER/N 1C,th, 1916. Oear Sir: Replying to the request contained in your favor of the 9th inst., addressed to !Ar. :Aro% regarding your report of the aew Jersey Bankers Convention, I beg to advise that though :4.. Strong did con- sent to address the Convention, he has since found that he will be unable to do so and Pierre Jay, Federal Reserve Agent of the bank is taking his place at the meeting in Atlantic City. Very truly yours, Secretary to L:r. Strong. C. A. Luhnow, Eel., Publishort"Trust ConpaLi,e, 55 Liberty Sireot, VC7! ew York city. a a !.!ay 10th, 1916. Dear Sirs: Replying to the request contai,Ied in your favor of the 8th inst., addressed to garding your re port of the i:ew Strong re- ersey bankers Conven- tion, I beg to revise that though Strong did con- sent to address the Convention, he has since found that he will be unable to do so and -r. Pierre Jay, Federal Reserve Agent of the bank is taking his place at the meeting in Atlantic City. Very truly yours, Secretary to Steurer Publishing Company, 5 Beekman Street, New York City. VOA 'r. Strong. TELEPHONE. JOHN 5523 4 Orust 4 &tuit Tomvattles (gontvattits tiruateb to Trurit Tattaanies, Nanking anb Niminciat 3fittrreato of A illuttfillg iflagazitte C. A. LUHNOW. PUBLISHER 546ACilwrtg it)trrrt, Nrtn jerk Titg ed'p May 9, 1916. Om. 1110. 1 t>AS) 4C1 C° Mr. Benjamin Strong, Jr., Governor, Federal Reserve Bank, New York City. Dear Sir: Can you possibly favor TRUST COMPANIES Magazine with an advance copy of your address to be delivered before the New Jersey Bankers Association? We plan to have a report of the convention in the May number of TRUST COMPANIIZ which will be ready for distribution about May 18th. The forms, however, close about May 12th and we shall appreciate if you can oblige us with a copy of your address prior to that date with the understanding that it will not be released until after delivery. Very truly yours, Publisher. CHARLES L WISE. TREASURER C.A HAZEN PRESIOENT THE FiNANCIER 411 7(/0 AMERICAN EXCHANGE NATIONAL BANK BUILDING THE LEADING BANKING PUBLICATION OF AMERICA NEW YORK 0931 q'' *%1/4' Z6,: N 128 BROADWAY t'S .'- :' C\ ...* May 8th, 1916 . :-1?4 4/4), ,-., 1Benjamin Strong, Jr., Governor, Federal Peserve Bank, Ho9. 10 1,', :few York. 4' Dear Sir: We would be pleased to have copy of the address you aro to deliver before the New Jersey Bankers' Convention on May 12th, at ^tlantic City. Thanking you in advance for your courtesy, we remain, Respectfully yours, /*1 STEURER PUBLISHING COMPANY INCORPORATED UNDER THE LAWS OF THE STATE OF NEW YORK AIMmerlcan Banker ESTABLISHED 1836 Weekly-15.00 a year CIRaily Bond Dews $7.00 a Month Underwood's C) goutiiAlt RePorkey Bi-Month \\ a Year \1\ CHARLES D. STEURER. Pres. Half Yearly -(Mar. and Sept.) $7.00 a Year sipPliblishers to the Banking fraternity \CD Desk Edition American Bank Reporter Half Yearly -)June and Dec.) c,"-S1/. sto American Bank Reporter Leather -$7.00 a year Main Office: 149TH ST. and BERGEN AVE. Tel. 5000 Melrose Branch: 5 BEEKMAN ST. Tel. 7823 Cortlandt New York City, May 8th, Mr. Benjamin Strong, Jr., Governor, Federal Reserve Board, New York City. Dear Sir:- It is our intention to present as complete a report as possible of the proceedings of the convention of the New Jersey Bankers' Association. Te note that you are to deliver an address before this convention, and would greatly appreciate your sending us a copy for publication. Very truly yours, STEURER PUBLISHING CO.., Per. P. S. ,. If you have a recent photograph, we would also thank you to send it for reproduction. * 1916 "pril 28th, 1916. -oar -ir: strong wishes behnlf for yo:r kin to thank you in his letter of the 26th inst., and sny that the ncoumuletion -f work chriu7 his absence in "':rope make it absolutely impossible for him to un,2,er- take each an irticlo as yo.: desire :'or "Trust Companies." Very truly yolrs, 7ooretgry to 7:.r. C. A. Tnhnow, sn., 'nblisher, "Trast Companies," 1 7.iberty etroet, N w York City. 7troug. TELEPHONE, JOHN 5523 ant t 011autpanits A famttlIttt filagazittr Dettateb to Truat Toatpanirri, Nanking att) Financial 3ntrrclito of Or Unita .tatra C. A. LUHNOW, PUBLISHER (Our Eihrrtu tstrrrt, Dirty liark Mag. 1911 April 26, 1916. ANN.. Mr. Benj. Strong, Governor, Federal Reserve Bank, New York City. Dear Mr. Strong: In view of your recent visit to Europe, may I have the privilege of presenting in TRUST COMPArIES your views as to the opportunities which are now offered to our banks and business men to develop over -sea trade and credit relations? This suggestion is also prompted by a reading of your address delivered before Williams College, which was reproduced in a recent issue of "The Pyramid." I realize that you have little time for engagements to prepare articles or expressions of views, but I sincerely hope you may be able to favor us. I am thoroughly convinced that we can serve our banking and trust company interests in these epoch-making days by impressing upon them such facts as presented by you in your address at Williams College. Very truly yours, Publisher. April 18th, 1916. Dear Sir: Mr. :strong was called out of the city almost immediately upon his return from 7.urope and has, there- fore, asked me to express his regret that he is unable to give a favorable reply to your request of 11.arch 21st for a contribution to the FlarIELarimsen. Just at pres- ent, however, the demands on his time make it impossilde for him to send you such an article as much as he would like to (lc) so. Very truly yours, Secretary to 7:r. Strong. Karl F. Jackson, 29 Dana Chambers, Cambridge, : :ass. VC!. March 22nd, 1916. Dear Sir: In 'Ir. ::trong's absence, I beg to acknowledge receipt of :lour favor of the 21st inst., requesting a contribution for publication in the Harvard Crimson. 'Ilan :trong returns, Which will probably be about three weeks from now, his c-lled to your letter .1Ltention will be ad ciou will, no doubt, hear from him regarding the article. Ifelv truly yours, Cedretary to Jr. Strong. Karl F. Jacson, Tsq., 29 Dana Chambers, Cambridge, Cass, TELEPHONES CAMBRIDGE 2811 DWIGHT HAROLD INGRAM. '16, PRESIDENT EDWARD ALLEN WHITNEY. '17, MANAGING EDITOR CLO CAMBRIDGE 2812 LAPORTE, '1 6, EDITORIAL CHAIRMAN EDITORIAL DEPARTMENT THE HARVARD CRIMSON CAMBRIDGE, MASS. ;.:9 Dana Chambers, Cambridge, vrass. ?!larch .2f 1916. Benjamin Strong, 7ederal Reserve Bank, New York. Dear Sir, At the suggestion of 7r-T.P.Warburg, I am writing to ask if you would be willing to contribute an article for publication in the Crimson. Thereis running a series of articles on various kinds of business, a sample of which I am enclosing. The desired article would not be long, cer- tainly not exceeding 1000 words. We would like a discussion of the possibilities of college men in banking and the tualifications most essential to greatest success in that field. The Crimson would great12: appreciate such an article from you, and I hope that you will find it possible. Very truly yours, rA5'1/4d (7:f 1.1 e. ) January 24th, 1916. Dear :71r: In rely to your letter of ,Tu.nuarw 20th, I have to state that it would be imponsiblu far us to publish the annual statement of this institution in any publication as a paid article. Our annual report is now in process of preparation and if any of the material contained in it will be of any service to you, I shall be vary glad indeed to Alrnish it as soon as it is ready for distribution. Very truly yours, Governor. F. :hea, 7s4 7.essrs. Dou#leday, Page & Comnany, 11 West 32nd Street, Now York City. 7:31: DOUBLEDAY PAGE & COMPANY PICO LIS EllS January 14th, Li:LS. Dear 31-ofessor Kemmerer: I shall certainly lot you know a.out any return from Europe, which will probably be about the micidle of `,larch, and allowing aufricicnt time to clear up accumulated work, I probably could ar- range to go to Prioeton sometime early in April. 7incerely yours, Profes:,or E. .. Kenricrer, 2rinceton University, :1.inceton Jr/VC:1 j. PRINCETON UNIVERSITY PRINCETON, N. J. DEPARTMENT OF Jan. 13, 1916. ECONOMICS AND SOCIAL INSTITUTIONS Mr. Benjamin Strong, Jr., Federal Reserve Bank, New York City. Pear Governor Strong: I was sorry to learn from your letter of yesterday that you could not be with us February 11, but my regrets are largely removed by the fact that your lecture ham only been postponed and not given up. Ordinarily the announcements of these lectures are given not earlier than ten days before the lecture. Accordingly if for any reason your Tlana to go abroad should harp en to be changed before February first, the date of February 11th would probably still be available so far as we are concerned here. I Otherwise, am sure that we can find some Friday in March or April that will be satisfactory. Will you kindly let me know when you return from Europe? Cordially yours, S January 12th, 1916. Dear Professor Kemmerer: Your letter of the 10th is received this morning, and with very many regrets I a.n writing to toll you that my plen for selling on February first apparently can be carried out unless something unforseen arises and it will, therefore, be imponsible for ne to keep my engagement for the 11th of Pebrury. :oat of the discussion of the 7ederel reserve ::ystem has been before the various groups of bankers in this ane other s tee, and for some of us tho are not accustomed to tele sort of work, it has been reTher difi icult and trying, particularly with the country bankers who have not ell been friendly. I have not enjoyed opportunities to attend meetings of the character that the conference at Princeton would be and am, them fore, very regretful that it must be postponed. You will observe that I said "postponed", because I am hoping that you will give no opportunity Inter to meet the class. I expect to be bacl: by the middle of :Ierch. mhanking you very warmly for your courtesy and with :dndest regards, I beg to remain, Very tinily yours, .rof. 7, W, Kemmerer, ?rinceton University, .rinceten, ::. J. D Jr/7U PRINCETON UNIVERSITY 2 the night you are in Princeton but recognize the prior clailq of Ira. Spaulding. If by any chance you could atay over until Saturday afternoon we would like very much to have you take luncheon with us and a few membera of the economics department Cordially yurs, Saturday ncon. January 7th, 1916. Dear Professor Kemmerer: Your favor of January 5th is just received and I am grateful to you for the further particulars you were good enough to give in regard to my engagement to dress some of the grad- uate students on February llth, It is most kind of you and :rs. Kemmerer to ask me to e the stay with you, but I have a long outstanding promise to to spend the night with my cousin, Professor first opportunity Spaulding's wife, and fear tiv-it this will be my only chance for doing so in the near future. I hope the students realize that the officers of the reserve binkm were selected for their duties with regard to what was supposed to be their qualifications as bankers and not as public speakers. I have generally endeavored to escape the preparation of careful addres:;es by making them exceedingly in- formal, which I hope will meet with your views of what is required of me in this case. So far as I have thought of the mrtter, I have the following in mind: 1st. r2o say very little in rogard to the theory of the Federal Reserve Act and practically nothing with regard to the history of Ameriorn banking and currency. If the class has studied Jan. 7, 1916. Ii To Kemmerer. ?rof. E. the Act itself and the causes which led to its :cloption and is familiar with Professor Dunbar's 71heory dnd Eistory of Bank-, ing"and Mr. Horace White's"1:oney ant Banking,"there is little that I could say that would be any contribution to their course on these two general subjects. 2nd. I hfld expected to point out the comdexities of our present sysem which affect the development of the reserve system and render the work of inauguration, so to speak, rather difficult and one which is likely to occupy a period of many years; for that purpose, contrasting conditions to be dealt with in this country with those which existed in Lk)rman:;! and Japan in the early '70s and '80s, when those two countries respectively effected a consolidation of their banking system and their currency. 3rd. sary work Then I thought of briefly sketching Uhe prolim8- organization, showing how it had been possible to bring the twelve units together with the -Reserve Board into a har- monious working organization. Pith. r2o give a little description of the way the dif- ferent functions of the banks have been taken up in practical operation, which would include reference to Deposits of member banks, Open market operations, i. e., purchases of bills and warrants, Government bond purchases, Foreign exchange, (why it has not so far been developed), The Gold Settlement ?and. note issue. Jan. 7, 1916. To :<emmerer. -'rof. 5th. I had expected to conclude what I had to say ;: referring to the distinguishing feature between Lombard Street and Wall Street as public institutions, calling attention to the fact that LemiJard street, as the center of finance of the British nation and the clearing house for the world's commerce, was one of the most respected institutions in 7:ngland or in the world, whereas, Tall Street, occupying a somewhat similar position in this country was, in the estimation of the country, held in little esteem, but this difference, so unfavorable to street by contrast, was due, not to the fact that 7;all Street was in the hands of dishonest men, but that the coun- try's banking system had led to conditions which periodically arose that could not do otherwise than create distrust of Street and that one of the effects to be hoped for in the future was to eliminate those unsound features of the old system and re-EL,tablish Tall ;:treet as an institution in the co#fidence of the people of the country. This sounds like a pretty long talk as I dictate this letter and I would much anprociate suggestions from you as to what parts of it, if any, can be omitted and as to whether any other phase of the subject can be dealt with to better advantage. I shall enjoy the evening discussion very much. May I ask if those who attend the evening discussion are in the habit of dressing for it? I should, also, warn you, and I do so with regret that I have tentatively engaged passage on the Rotterdam for February 1st. Jan. 7, 1916. -4- '2o 2rof. Yemmerer. I may not go, but will know ,definitely in the course of the next week. This, you will recall, I mentioned when you were here and should it be impossible for me to keep my engagement, I hope you will understand the reason and permit me at some future time to meet your class in economics and finance. ':ith kind regards and thanking you for yo-,,,r letter, Sincerely yours, °ref. . Kemmerer, Princeton University, Princeton, N. J. BS Jr/VCM I am, PRINCETON UNIVERSITY 2 a few who have been doing special work on the subject, will be only moderately. .1ell inforned concerning the System. They will have studied it only for a few weeks. The informal evening conference at which there are usually about twenty present has proven to be the most valuable part of these di3cusaicr.,5, and in the selection of a subject for the afternoon's address I think the benefit of the doubt should be given to a subject that would submit itself well to "a round table discussion". If you should happen to be considering several possible subjects, and would care to have my opinion as to which one would beat suit our conditions here, I would be very glad to give you my judgement in the matter. Again thanking you cordially for your kindness in offering to cooperate with us here at Princeton, I am, Sincerely yours, FILING DEPT. Nov.,: o i:;16 FEDERAL RESERVE BANK November 29, 1915. The Newark Trews, Newark, N. J. Dear Sirs: I see by the Commercial and Financial Chronicle that you reported my talk at the meeting of the Essex County Bankers Association about a fortnight ago. As I have not seen a copy of what you printed, I should appreciate it very much if you would send me a copy of your paper containing a report of that meeting. Yours very truly, Chairman. J/RAH .fro a I. rkagankerstsociation THE PRESIDENT WM .A.LAW,FirstVice-Pres.First National Ban k,Philadelphia,Pa. /CE-PRESIDENT JAMES K.LYNCH.Vice-Pres.FirstNational Ban k ,San Francisco, Ca I . GENERAL SECRETARY FREDERICK E.FARNSWORTH, Fi ve N a ssau StreetNewYork City TREASURER J.W.HOOPES,Vice-Pres&Cashier City National Bank,Galveston Texas ASS/STANT SECRETARY WILLIAM G.FITZ WILSON, Five Na ssau Street,NewYork City GENERAL COUNSEL THOMAS B.PATON, Five Nassau Street,NewYork City FIVE NASSAU STREET Itry/Yo I it MANAGER PROTECTIVE DEPARTMENT L.W.GAMMON,Five Nassau Street.NewYork City MANAGER DEPARTMENT OF PUBLIC RELATIONS June fIrd, 1915. A.D.WELTON, Five Nassau Street, NewYork City Miss V. C. McLaren, Secretary to Mr. Strong, Federal eserve Bank, New 1or7- City. My dear Miss McLaen:We appreciate your thoughtfulness in remembering to send us copies ofLEI_Atrong_s_mas re.ment addresses . We have added them to the data regarding the New York Reserve Bank which we attempt to keep As complete as possible for fu, ture reference. Very truly yours, iI - Librarian. MRG/S 1 SURRORIPTION PRICE St 6.00 PER ANNUM I. DEER 1,1 NED RDA i as OE orla 0 Ex NOVI, V II OIFEDDEIS U B. EXPRESS BUILDING To THE DIROESSION Of CURRENT. VINAT10.11. FINANCIAL AGE HECTOR STREET NEW TORE V. HOWARD HOOICE AND OONObile QUESTIONS TELEPHONE 2359 RECTOR EDITOR NFAV YO1 I May 19, 1913 Benjamin Strong, Jr. Governo;, Federal Reserve Bank, Yew York City. Dear Mr. Strong:- I am handing you herewith four gall6Vs of your address which I will be very much pleased if you will make such corrections as you feel are necessary, or advisable and return same to me as early as your convenience will permit or sooner if your good nature allows. s ver,3f truly, Editor. Oee'v-11,1 I ::arch 18th, 1915. Dear :Warn: In accordance with our telephone conversation of the 17th, copies of addressee :Jade r. Strong at the Merchants Association of liew York UolleCe, are enclosed herewith, and and copies of future addressee nude by _a. L;trong which are in a form available for filing purposes will be forwarded you. I have to advise -6na..; neitner oz the above have been published in pamphlet form. Your desire to have copies of these speeches on file in the library of the American Bankers Association is much appreciated. Very truly yours, ':ecrotary to P. Glenn, Abrarian, Miss The Americrn Bankers Association, Five Nassau Street, Jew York- City. Strong. I PRES/DENT WM .A.LAW First Vice-Presfirst National Ban k,Philadelphia,Pa. VICE-PRESIDENT JAMES K.LYNCH.Vice-Pres.FirstNational Bank ,San Francisco, Cal. GENERAL SECRETARY FREDERICK E.FARNSWORTH, Five N assau Street,N ewYork City TREASURER J.WHOOPES,Vice-Pres.&CashierCity National Bank,Galveston Texas pI cialteritida& =113 VAtams ASSISTANT SECRETARY WILLIAM G.FITZWILSON, Five Nassau Street, NewYork City GENERAL COUNSEL THOMAS B.PATON, Five Nassau Street,NewYork City MANAGER PROTECTIVE DEPARTMENT March 2nd, 1915. L.W.GAMMON,Five Nassau Street,N ewYork City MANAGER DEPARTMENT OF PUBLIC RELATIONS A.D.WELTON,Five Nassau Street, NewYork City Mr. Benjamin Strong, Jr., Governor, Federal Reserve Bank, 27 Pine Street, New York City. 414R42, ; 5 Dear Sir:The brief newspaper and other accounts of your addresses on subjects related to the Federal Reserve System suggest that the addresses in complete form would be v-ry desirable additions to the reference and loar files of the Library of the American Bankers Association. if it is possible for you to send us two copies of such addresses as may have been published in pamphlet form, and place us on your mailing list for future speeches, we should appreciate the courtesy. Very truly yours, Librarian. MRG/S a 0 II. K. TWITCHELL TWO-SEVENTY BROADWAY NEW YORK February)26, 1515 Governor Benjamin Strong, Jr., Federal Reserve Bank, New York. Dear Mr. Strong: Your letter of the 24th is received, and I note that, while you do not feel warranted in accepting the invitation of the New York Credit ':.en's Association so far in advance, there is a possibility that a little later you will see your way clear to responding favorably to their invitation. sincerely trust that you will be able to do so. Thanking you for your letter, I am. Yours very truly, 1- I I February 26th, 1915. Dear Sir: At Strong'a direcion, I w writing to thank you on his behalf for your very mind fa- vor of the 25th, and to advise you that by the latter part of next or the first part of the week fol- lowing, he hopes to be able to write you definitely regarding the Annual Spring Banquet of the New York ::relit Iten's Association. Very truly yours, Secretary to V.r. Strong. A. 11. Alexander, Esq., ;:ecrotary, N. Y. Credit :,:en's 320 Broadway, new York Ci.4. n Telephone 657 Worth Organized September io, 1895 Incorporated January 25, t896 6,--t) (The Nei York Credit Men's Association (AFFILIATED WITH NATIONAL ASSOCIATION OF CREDIT MEN) Officers President Executive Committee 320 BROADWAY EDWARD D. FLANNERY A. Steinhardt & Bro. Geo. H. Williams W. M. Kennard First Vice-President W. F. H. KOELSCH Jesse M. Smith Bank of United States . H. A. Caesar Or Co. Graupner. Love Or Lamprecht . Citizens Central National Bank . Edwin B. Heyes H. Uehlinger Second Vice-President E. S. BOTELER . J. 0. Hobby. Jr. G. K. Sheridan & Co. . W. Or J. Sloane Moller & Schumann Co. American Locomotive Co. . . G. E. Chapin Treasurer OWEN SHEPHERD Frank S. Flagg International Paper Co. Wm. T. Black U. S. Kolby Secretary ARTHUR H. ALEXANDER . . . W. E. Thatcher H. C. Bainbridge. Ir. 320 Broadway . Max L. Masius Counsel R. J. Wall Julian A. Gregory Morse Or Rogers J. B. Greenhut Co. American Ever Ready Co. . Standard Oil Cloth Co. Chas. T. Bainbridge's Sons . Seeman Bros. National Lead Co. . 115 Broadway NeW York,ebruary 25, 1915. Banjamin Strong, Jr., Governor, Federal aeserve Bank of New York, New York City, N. Y. u 01* 19/ by dear Sir: aeplying to your letter of the 23rd instant, our Business Mettings Committee, which has in charge the arrangements for the Annual Spring Banouet to be held at the Fotel Astor on April 22nd, instructs me to advise you that we fully appreciate that the many duties which demand your attention make it impracticable for you to give definite decision at this time, respecting the invitation extended to you tc address cur members on the occasion named. In vier: cf the fact, however, that this meeting will be a most important one and that we are desirous of completing arrangements as early as possible, the committee, while pleased tc defer until a later date receipt of definite reply, expresses the hope that you may reach a decision sufficiently in advance of the day of the meeting to enable us to facilitate our arrangements in connection therewith. Yours very truly, am, Secretary. ir/ZzisiCf .1)1qP7', pea 23 1915 i'EDERAL RESERVE BANK February 23k 1915. r. Garrard Comly, Vice-President, The Citizens Central National Bank, 320 Broadway, New York City, N. Y. Dear Sir: I am sorry not to be able to send an immediate answer to the invitation extended to me by the New York Credit ,,rents Association to make an address at their an- nual spring banquet to be held on April 22nd. I have asked the :,ecretary to let me know at what date an answer would he necessary in order not to inconvenience them in making plans, and if it is possible for me to accent, I shall certainly do so with great pleasure. Very truly yours, r:overnor. BS,Jr/IK.8 February 23, 1915. Mr. A. H. Alexander, secretary, The New York Credit L;en's Association, 320 Broadway, New York City, N.Y. Dear air: Your favor of the 19th instant is received, and were it possible, I would send an acceptance at once to the kind invitation you have extended to me to address the association at the time of its annual banquet on April 22nd next. It will be impossible to arrange so far in advance to make this engagement, and i as writing to inquire whether you can make a later date when my an- can be sent without inconvenience to you. Thanking you, I beg to remain, Very truly yours, Governor. Organized Sept01 emiser tq, t8q5 Incorporated januar9 25, 1896 Telephone 657 Worth 4 W14 Officers (i.e NeW York Credit Men's Association President EDWARD D. FLANNERY (AFFILIATED WITH NATIONAL ASSOCIATION OF CREDIT MEN) Executive Committee 320 BROADWAY Geo. H. Williams W. M. Kennard A. Steinhardt & Bro. First Vice-President W. F. H. KOELSCH Bank of United States Second Vice-President E. S. BOTELER, G. K. Sheridan & Co Treasurer OWEN SHEPHERD International Paper Co. Jesse M. Smith 40, . Edwin B. Heyes H. Uehlinger H. A. Caesar & Co. . Graupner, Love 6- Lamprecht Citizens Central National Bank . W. & J. Sloane . Moller & Schumann Co. J. 0. Hobby, Ir. American Locomotive Co. G. E. Chapin Westinghouse Electric & Mfg. Co. Frank S. Flagg Morse & Rogers Wm. T. Black J. B. Greenhut Co. American Ever Ready Co. U. S. Kolby Standard Oil Cloth Co. W. E. Thatcher Chas. T. Bainbridge's Sons H. C. Bainbridge. 1r Seeman Bros. Max L. Masius National Lead Co. R. J. Wall . . . . . . . Secretary . ARTHUR. H. ALEXANDER . . . . 320 Broadway . Counsel . Julian A. Gregory . . . . . . 15 Broadway Neal York, February 19, 1915. Benjamin Strong, Jr., Governor Federal Reserve Bank, New York City. Dear Sir: By direction of Ir. W. F. H. Koelsch, Chairman of t'rie Business Meetings Colimitte o-.7. this i',.::Lociation, I write to confirm the verbal invitation extended to you by our President, :_dward 2. Flannery, to be a guest of our A3.ociation and adclress our members on the occasion of our Annual Spring Banouet at the 'iotel Astor on April 22, 1915. Our committee expresses the sincere hope that you will give th- matter your farmst any careful consideration, and that we nay be favored with your acceptance. Yours very truly, Secretary. CSI t Catizetto Guira 1 Xational OF NEW Edwin S. Schenck I.FtEtalnENT Francis M.Bacon,Jr. VICEPHE41111,N7 Garrard COMlyPRI.11".141. CE 316mo Vet* Albion K.Chapman 7,41111,14 February 19, 1915. Jesse M. Smith ewnelrle ASS'T James lrAllis ter A59.7 CA,4111. William M.Ilaines AtittiT cW14111141. Hon. Benjamin Strong, Jr., Governor, The Federal Reserve Bank of New York, 62 Cedar Street, City. Dear Sir: Mr. E D. Flannery, President of the Now York Credit ?den's Association, 11-..3 told us of his personal call upon you today and the desire of the Association to have you address its members on the evening of April 22nd. In this connection the writer trusts you will permit him to tell you how very much interested this bank is in the Credit Men's Association, and as the merchants as well as the bank men who compose its membership aro particularly anxious to keep in touch with the progress of the Federal Rese:-ve Banks, we hope you may find it possible to accept the invitation of the Association for the data mentioned. Very truly yours, Alt114 Vice ?resident