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Misc. 4 office Correspondence FEDERAL RESERVE BANK OF NEW YORK Date Sept. 18,1919 Subject. File s To J.E.Crane From Limu-DEPT CT7' 7 9WI %N. 1910 With reference to Gpvernor Strone;'s request in his cttleram No. 22, to P-"- arrange with the Treasury to facilitate his landing., I spoke to TAr.Kelley on the subject, and after taking it up with Assistant Secretary Rowe he informed me that Dr. Rowe had promised to write to the York to facilitate the Governor's landing. aA.-A *1 qf lq I (q Collector of A Customs at New FEDERAL RESERVE MISC 4 BANK OF NEW YORK Date October 24, 1919 C 7ICE CORRESPONDENCE FtLENo bErioT Mr. J. E. Crane Subject: To_ OG Mr. Geo. Beyer F .fro 1919 FELIta RE6ERVE BAriK A Please note that there has been deposited with the Bank of England for the credit of the Federal Regerve Bank the sum of X160, 12 s. being refund of passage money paid by Mr. Strong on account of accommodation reserved on the "Baltic" Sept. 19th, which he cancelled. Messrs. Morgan, Grenfell & Co. were requested to collect this money for Mr. Strong and to deposit it with the Bank of England o1the credit of the Federal Reserve Bank. Under date of October 9th, Morgan& Grenfell & Co. advise that the money was collected and deposited as requested. NT:sc. 4 C"fice Correspondence To- r. George Beyer F7DERALRESERVE BANKOFNEWYORK Date t.)etc:4)er 29, 1919 Subject. -/ From J. E. Care With reference to the attached correspondence, kindly note that we have today credited current expense account, GovernonStrong's European trip with the equivalent of the amount deLosited by Morgan, Grenfelli& Co. with the bank of nnand for our credit L160.12.0 at G4.16 1/2 G668.90. -0- OFFICE CORRESPO To FROM VE BANK W YORK FEDERAL RES MISC 3. 1.501,3.23 OF CE DATE_iiPtamber 25+ SUBJECT: _Mr- Case laS5 _Java Bank J _E. Crane. Mr. Storm, Secretary of the Nederlandsch Indische Handelsbank (Netherlands India Commercial Bank), amsterdam, called at the bank today and talked with Mr. O'Hara and myself regarding the business Of his bank and conditions in the Netherlands and the Netherlands East Indies. During the course of the conversation Mr. Storm said that Mr. Zeilinga, President of the Java Bank, had been forced to resign and that his successor, formerly head of the Netherlands Treasury at the Hague, was already on his way to Java. Mr. Storm said that Mr. Zeilinga had been severely criticised for the strong arm methods which he had used with the hanks in Java and was also held responsible to some extent for the substantial increase which has occurred in recent years in the floating debt of the Dutch East Indies. Mr. Storm explained that the Dutch ..;ast Indian Government had made extravagant expen- ditures for public works and for social welfare, and that Mr. Zeilinga had encouraged the government in this course and was always prepared to discount increasing amounts of treasury bills. The fact that the Dutch East Indies' budget is not balanced contributes in a large measure, Mr. Storm said, to the discount which prevails on their exchange. He explained that his bank, anticipating a fall in the Dutoh East Indian guilder, had operated accordingly to a considerable extent in the exchange market and because of such operations his bank had been severely criticised by MrZeilinga and on several occasions accused hy the latter of being responsible for the weakness in the guilder. It was apparent that the relations between the Nederlandsch Indische Handelsbank and the Java Bank are rather strained due to the unfriendly attitude of Mr. Zeilinga, and yr. Storm said that he thought FEDERAL RESERVE BANK OF NEW YORK . OFFICE CORRESPONDENCE To FROM_ Mr_Case, DATE SUBJECT: J. E. Crane. ___4eptember_25, 192_3- Java Bank -2- the representations which his bank had made to the Netherlands Government were partly responsible for the forced resignation of Mr. Zeilinga. Mr. Storm also told us that the Java Bank had made substantial profits from its operations for the Dutch East Indian Government and was endeavoring to declare a huge dividend of over 100 per cent. which Mr. Storm said was entirely unjustified, had been condemned by the conservative bankers and opposed by the Dutch East Indian Government. In spite of this opposition Mr. storm that Mr. Zeilinga would be able to put through his program. thought Mr. Storm referred to the policy which the Java Bunk has pursued during and since the war of keeping its discount rata very low, at present 3 1/2 per cent, and said that his bank had been strongly opposed to this policy and considered it a very unwise one. He said that Mr. Zeilinga had endeavored to use strong arm methods to curtail credit without raising the rediscount rate. Mr. Storm also stated that relations between the Java Bank and the Netherlands Bank were not at present very friendly on account of Dr. Iissering's dislike of the methods pursued bY Mr. Zeilinga, and said that for the first time in the history of the two banks Dr. Iissering had publicly condemned the policies followed by the President of the Java Bank. Ti FEDERAL RESERVE BANK MISC. 4.1. OF NEW YORK a ICE CORRESPONDENCE Governor Strong To FR 1 DATE SUBJECT January 3, 1924. 192L Japan. J. E. Crane Prior to September 1, the date of the earthquake, i at 48 1/2 or 49 for months. Japanese yen were quoted The course of Japanese exchange since September 1 has been as follows: t4r September 1 Ft 15 1 October 15 November 1 ti 15 December 1 II 15 2 January - 4800 4840 4860 4880 4875 48125 47875 4681 4550 We discounted 4,000,000 of bills for the Bank of Japan on December 18. For over a yell.' prior to that date the Bank of Japan had 0,500,000 in bills, 0,500,000 in certificats and 7.,000,000 in free balance. They now have 17,000,000 as against if;20,000,000 befor . .21 8yolt. 6-- Copy 7(e) FEDERAL RESERVE BANK r co. er OF NEW YORK OFFICE CORRESPONDENCE 1Tr. Case DATE August 22, 1925 SUBJECT: J. E. Crane FROM Yesterday when Dr. Mlynarski and Mr. Gliwic were waiting to see you, I was talking with them regarding the settlement of the Belgian debt. Mr. Gliwic said that he had been told by a member of the Belgian Commission that Mr. Mellon had assured them that there would be no diffi- culty about the National Bank of Belgium obtaining a credit from us for the stabilization of their exchange similar to the Bank of England credit now that Belgium had undertaken to pay its debt to the United States. Gliwic said that he thought We Mr. might therefore expect to have another customer before long seeking credit from us. I have put this in writing because I thought you might like to have it in the record. - 192_ OMS-2-2SM 11-24 "WM! INTEROFFICE FEDERAL RESERVE BANK OF NEW YORK ROUTE SLIP A. M. P. M. TIME TO REN1ARKS OFFICE SERVICE MESSENGER SECTION DATE a 42.__ezt_srmpARTmE NT DIVISION TION 9 FROM DEPARTMENT DIV IS ION N. B. USE THIS FORM IN EAD OF OFFICE ENVELOPE 14; AND ACCU RA FE DELIVERY ALL COMM TO INSURE PROMPT P ATIONS SHOULD BE DISTIN CTLY L DERAL RESERVE BANK MISC. 3. 1-50M.I-35 OF NEW YORK OFFICE CORRESPONDENCE Governor Strong DATE SUBJECT: October 1 1925 192 perienoed foreign exchange men, ".°E j. 3. Crane FROM John?. Schmid Vice President, Bankers Trust Co. He is the active senior officer in charge of the Foreign Department and has had many years experience in foreign exchange both at the Bankers Trust Company and blsard Freres. He is above everything else a trader although in recent yearshas had considerable experience in cemmercial credits. He is without question one of the best foreign exchange men in New York. The only criticism I have ever heard of him is that he is every hard man to work for, being quite domineering and arbitrary to those under him. Approximate ages 40/45. F. A. Klingsmith Assistant Treasurer, Bankers Trust Co. He is second in command ton*. Schmid in the Foreign Department and concerns himself principally with commercial credits. His experience along that line has been considerable, principally in the Bank of New York where he worked for many years before going to the Bankers Trust Company. While I doubt whether he has had much actual trading experience, I an sure that he understands that Furthermore, he has always impressed me branch of the business thoroughly. as having an excellent grasp of the foreign exchange business and is possibly a little more of a theorist than Mr. Schmid. Although he does not occupy quite as prominent a position among the foreign exchange men in the city as Mr. Schmid, nevertheless I have always thought that he was about an par with the latter. Approximate aces 40. 1. J. Barnes Assistant Vice President, National City Bank. He is the right hand man tolls'. Duis, who has charge of the trading at the City Bank, and has been at the National City Bank for a good many years. It is my impression that most of his experience is in trading and I do not think his training has been quite as broad as Er. Schmid's or Ur. Klingsmith's. I would not rank him quite as high as either of then. However, he is very bright and has a thorough knowledge of foreign exchange. Approximate ages 35/40. -.0-0-0 -0-0 - ;.ward S. Spitzer, Manager, Foreign Department, Heidelbach Idkeiheimer & Co. While he was born in Nurope and has some Jewish blood in his veins, FEDERAL RESERVE BANK MISC. 3. 1-50M-1-25 OF NEW YORK OFFICE CORRESPONDENCE DATE SUBJECT: Governor Strong Crane J FROM October 1,1926_____ 192_ BXperienced foreign exchange men- 2 Edward E. Spitzer, MAT., Foreign Dept., Heidelbach Ickelheimer & Co. he has been in this country since he was a child, is He is in Charge of the foreign business of Heide/bach is primarily a trader although he is also every good Spitzer is a former President of the Foreign Exchange a citizen, and 100 American. Iakelheimer & Company and commercial credit man. Club, and ranks very high nr. 'among the exchange men in New York. He is probably more of a student than any of the TIAM which I have mentioned so far, and I would put him in the class with Schmid and Klingsmith. Approximate age; 35/40. -0 -.0 -0 D. J. Palmer, Lanager, Foreign Department, Farmers Loan & Trust Co. He ranks about like a junior vice president and is in direct charge of all of the company's foreign business. Consequently he is well versed in all phases of the work. Fa% Case knows him very well and has the highest regard for his ability. Approximate ages 35/40. H. P. Barrand, 2nd Vice President, National Bank of Commerce. The Foreign Department of the National Bank of Commerce is under ressrs. Penny and Broderiak, Vice Presidents, and Mr. Barrand is next in :Line. I think he looks after the ccnmeroial side of the business While the trading is handled by Ur. FranzLeyer. Pr. Barrand has been in the Commerce for a number of years and is an experienced foreign man although I do not know how much training he has had in trading. I would rank him about with Burnes of the City Bank, both of whom I think are a little below the others mentioned. Approximate ages 40. aaaa There are two younger foreign exchange men in New York who have always impressed me very favorably and wham I would reoommend if "Itunior officers" could fill the job. Knight Woolley Assistant Cashier, Amerioan Exchange Nat'l Bank. He has been out of college about ten years most of which time has been bank. While be has specialized more in the commercial credit side, I think he is also entirely familiar with the trading end. He is a very high class young man, comes from a very good family, and has spent in the Foreign Department of this FEDERAL RESERVE BANK MISC 3. 1-50M-1-25 OF NEW YORK OFFICE CORRESPONDENCE Governor Strong FROM DATE SUBJECT: October 1, 1925 192 Experienced foreign exchange mmn. J. E. Crane Knight Woolley, Assistant Cashier, American I. Natl. Brink. a, very good grasp of the foreign exchange business. I think he is a "comer" but of course has not had as much experience as those men mentioned above. Approximate ages 30. Wm. H. Draper, Assistant Treasurer, Bankers Trust Co. He is next in line to Klingamith in the Foreign Department of this company with whom he has been connected for only a few years. Prior to that time he vms with K. N. &X., and before that, I think, with the National City Bank. At any rate he has had a good many years of excellent experience, and I think he is faailiar with all sides of the business. He has always impressed me as being a very bright and aggressive young man and would fit into any high class organization. Approximate ages 35. MISC. 4. I -200M-I -24 FEDERAL RESERVE BANK OF NEW YORK OFFICE CORRESPONDENCE Mr. Crane FROM_ DATE U November 4, 1095. ECT : J. H. Case 4- I am interested to kno just how you handled the matter of the thousand-dollar draft of the R ichsbank signed by Dr. Schacht, which we *fd""*.-., cashed for him on Monday, November P, and which lacked one signature. Kindly advise me he details of the procedure you followed. 192 MISC. 3 C I FEDERAL RESERVE BANK OF NEW YORK MISC. 3 C75M03-59) OFFICE CORRESPONDENCE DATE November 10, 1925 Governor Strong T SUBJECT: J. E. Crane FROM Referring to the attached letter from Governor Norman, the increases shown in the Bank Polski statement from September 20 to September 30 in the items "Foreign Balances, Bills and Money" and "Gold" are, in the former item, from Zl. 69,009,000 to Zl. 71,739,000, an increase of Zl. 2,730,000, and, in the latter item, "Gold", from Zl. 131,978,000 to Zl. 132,807,000, an increase of Zl. 829,000. For the same week the increase in "Foreign loans on gold - Federal Reserve System" is $2,100,000 all of which is made up of advances to the Bank Polski. You will note that this increase in foreign loans on gold does not correspond closely with the increase in Bank "Foreign balances, bills and money". Polski's However, the statement for our own bank, which shows only our share of the foreign loans on gold, exhibits an increase in that item for the week of September 23-30 of $567,000 which is about Zl. 20800,000. This latter figure corresponds more closely to the increase in the item "Foreign balances, bills and money". Perhaps the Bank of England has overlooked the fact that our own bank statement shows only our share of the foreign loans on gold and that the total amount of these loans is found in the statement of the twelve Federal reserve banks. At any rate I do not think we should look for a reflection of the loans which the Bank Polski is obtaining from us in the item "Foreign balances, bills and money" because our advances to them are made only to meet their drawings on New York (either on us or one of MC. 3 C FEDERAL RESERVE BANK OF NEW YORK (misc. 3 C-75M-5-59) OFFICE CORRESPONDENCE DATE November 10, 1925 SUBJECT: T FROM -2the other New York banks) so that as these advances are made to them there is probably no increase in their balances in New York. However, there is an item in the Bank Polski statement which would seem to reflect their loans from us. foreign exchange". This is the item "Liabilities in Between September 17, when we made the first loan to the Bank Polski, and October 10, which is the date of the latest Bank Polsi statement we have, our loans to the Bank Polski aggregated $3,400,000 which is about Zl. 17,000,000. Between September 10 and October 10 the item "Liabilities in foreign exchange" increased from Zl. 24,643,000 to Zl. 41,684,000 or approximately Zl. 17,000,000. The last question which Governor Norman asks in his letter is if the Bank Polski is drawing on its credit with us how is it that notwithstanding the pledging of gold for our account in London the Bank Polski is nevertheless able to record an increase in that item? Between August 25 and October 2 the Bank Polski set aside for our account at the Bank of England approximately $10,000,000. From August 20 to October 10 the item "Gold" in the Bank Polski statement increased from Zl. 121,740,000 to Zl. 132,072,000. My belief is that the Bank Polski has not deducted from the item "Gold" the amount of gold which has been set aside for us in London but that they have continued to carry it in their reserve and are showing their borrowings abroad under the item "Liabilities in foreign exchange". FEDERAL RESERVE BANK Misc. 4. 1.100M.8-25 i) OF NEW YORK OFFICE CORRESPONDENCE To, 192_ SUBJECT: Mr. Crane FROM DATE November 50, 1925 Benj. Strong Please read the attached letter from Mr. Gilbert and give me a memorandum of what you think about the question of the discount on the gold mark. The gold mark, you realize, is simply a theoretical money of account. Am I correct in assuming that the discount, which is, of course, merely a constructive one, means that the creditor governments accept payment at a rate of in other exchange Which is the equivalent of gold marks laid down in London; words, is the equivalent of the cost of importing gold rather than remitting exchange, notwithstanding that no gold is shipped? FEDERAL RESERVE BANK OF NOW YORK MISC. 4. 1-ZOOM-7-24 OFFICE CORRESPONDENCE To Eiss Bleedker DATE January 6, 1926 192 SUBJECT: J , B. Crane FROM With reference to the attached letter, you will note that we cannot use this new coding arrangement with Dr. Schacht until we hear from him. Further- more, it will not be possible to send the special shuttle for a few days as the shuttle was manufactured incorrectly the first time and is now being made over again. I expect, however, that we will be able to send the new shuttle to Dr. Schacht shortly. I will let you know when this arrangement can be used with Dr. Schacht and will also advise the Codes 6: Test Department. FEDERAL RESERVE BANK MISC. 4. I-200M-7-24 OF NEW YORK OFFICE CORRESPONDENCE To(' FROM Vr. Scott DATE /92 SUBJECT: J, E. Crane // iH )1" Lttached is a letter from Dr. Schacht Helmkin, February 5, 1926 which you might show to Miss Does she understand that Bentley's Code with this special shuttle will be used only on confidential cables between Governor Strong and Dr. Schacht and that our cables to Schacht will be addressed "Schacht Reichsvalu Berlin" and that Dr. Schacht's cables to us will be addressed "Strong Reichfed New York" ? r fikt FEDERAL RESERVE BANK Misc. 3. 1.50M.8-25 OF NEW YORK OFFICE CORRESPONDENCE To DATE Miss HelMkin, Codes &-lests February 6, 1926 SUBJECT: W. A. Soott._Eoreign Dept. FROM_ , cv 1 Attached is copy of a lette from Dr. Schacht regarding the use of the special shuttle which we sent to him to be used only on confidential cab es between Governor Strong and Dr. Schacht. If you have not already done so, will you kindly make a notation on your records that the cables to Dr. Schacht from Governor Strong are to be addressed "Schacht Reldhsvalu Berlin" and that Dr. Schacht's cables "Strong Reidhfed New York". to Governor Strong will be addressed 192_ - 3 -11 fi 3 eteT it sabot. 41, .LiareE .JicLfr4ilipmori ,S0004. - OW edt antlinagot StirAvApa .se nirfet 10$101 'A140 boor ød o: add 7,bain,113 Son 14 Vift4:3 liar(x1.sibagoe MI 3sr. .b-rocet loov4 os. 10 V.4.015 beciar4J41, Stash eve daitts eLT iffis latostla atisto btu Bacmill loineroD nevociod zek'Itatt solte,toca elAgi Vbet.0 IRA fifer enob rrialystbieff tdosidoa" bevasabbp ad o37-4rto-rSei icartovo0 teo,r1 tdoadoll sw7. OS bf.oesortbf45 Lftwtjt3itomtorcii) tteltiotv etiloadoe .7t1 led/ ban "irlit:61 .-117GY wer, betrici oft ginvz.32" FEDERAL RESERVE BANK OF New YORK Mm,L1.501d.8.25 DATE OFFICE CORRESPONDENCE 11r. Crane February 6, 1926 SUBJECT: To W. 1. Scott FROM /fr4 I have sent to Liss Helmkin a copy of the attached letter from Dr. Schacht relating to the use of the special shuttle with Bentley's code. I have previously explained to her the manner in which it was to be used and the way in which the confidential cables were to be addressed but have again sent to her a memorandum stating that the shuttle is only to be used on confidential cablegrams between Governor Strong and Dr. Schacht and that Governor Strong's cables to Dr. Schacht are to be addressed "Schacht Reichsvalu Berlin" and Dr. Schacht's cables to Governor Strong will be addressed "Strong Reichfed New York". 192_ 3. 1 FEDERAL RESERVE BANK 6014 7-26 OF NEW YORK OFFICE CORRESPONDENCE To Mr. Case DATE Larch 23, 1927. SUBJECT J. B Orane FROM With regard to your suggestion that a definite time be fixed for the visits of Drs. Vissering and Bachmann with Governor Strong, ing a telegram for your approval which suggests that I am attach- Dr. Vissering go to Atlantic City on April 6 for two or three days, and that Dr. Bachmann go on April 11, If Governor Strong arrives in Atlantic City about April 1, he will probably want several days to become acclimated and, probably not care to receive either of these gentlemen before the middle of the first meek in April. I think that DT. Bachmann is planning to return home about April 18 so that the most convenient time for their appear to be during the first and second weeks of April. therefore, would visits would 192_ 4. 4bcr1i. ' in4 pg. ivtort 10,747 Tb 441:011 A MOW Tr 1. Ofile ;,"':: 71- Igiortrerk ales. e.p. v. tatlisir. 6